Latest Ratios: P/E Ratio 41.2x · EV/EBITDA 18.2x · ROE 29.2%. (2020–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Market Cap | $13.3B | $16.0B | $10.0B | — | — | — | — |
| Enterprise Value | $13.8B | $16.5B | $10.7B | — | — | — | — |
| P/E Ratio → | 41.24 | 49.29 | 30.79 | — | — | — | — |
| P/S Ratio | 4.34 | 5.24 | 3.49 | — | — | — | — |
| P/B Ratio | 10.35 | 12.37 | 10.77 | — | — | — | — |
| P/FCF | 32.91 | 39.72 | 34.93 | — | — | — | — |
| P/OCF | 22.11 | 26.68 | 19.13 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.42 | 3.72 | — | — | — | — |
| EV / EBITDA | 18.21 | 21.83 | 16.82 | — | — | — | — |
| EV / EBIT | 26.42 | 32.91 | 22.69 | — | — | — | — |
| EV / FCF | — | 41.06 | 37.15 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Gross Margin | 49.1% | 49.1% | 48.1% | 47.2% | 47.9% | 46.8% | 44.8% |
| Operating Margin | 17.1% | 17.1% | 16.1% | 15.1% | 16.3% | 11.4% | 15.8% |
| Net Profit Margin | 10.6% | 10.6% | 11.4% | 9.7% | 11.6% | 8.9% | 10.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| ROE | 29.2% | 29.2% | 40.5% | 29.6% | 17.2% | 9.7% | 10.2% |
| ROA | 11.4% | 11.4% | 11.8% | 9.5% | 9.2% | 6.2% | 6.5% |
| ROIC | 23.1% | 23.1% | 23.1% | 21.4% | 24.0% | 16.4% | 18.6% |
| ROCE | 24.8% | 24.8% | 22.6% | 20.0% | 16.8% | 10.0% | 12.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.64 | 0.64 | 1.00 | 1.57 | 0.61 | 0.07 | 0.07 |
| Debt / EBITDA | 1.10 | 1.10 | 1.47 | 1.90 | 1.21 | 0.36 | 0.32 |
| Net Debt / Equity | — | 0.41 | 0.68 | 1.10 | 0.31 | -0.50 | -0.36 |
| Net Debt / EBITDA | 0.71 | 0.71 | 1.00 | 1.34 | 0.62 | -2.74 | -1.59 |
| Debt / FCF | — | 1.33 | 2.22 | 2.97 | 1.63 | -3.74 | -2.20 |
| Interest Coverage | 12.26 | 12.26 | 8.55 | 10.89 | 23.53 | 275.00 | 334.00 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Current Ratio | 1.32 | 1.32 | 1.24 | 1.34 | 1.44 | 2.52 | 2.38 |
| Quick Ratio | 1.32 | 1.32 | 1.24 | 1.34 | 1.44 | 2.52 | 2.38 |
| Cash Ratio | 0.39 | 0.39 | 0.40 | 0.44 | 0.54 | 1.74 | 1.45 |
| Asset Turnover | — | 1.05 | 1.02 | 0.98 | 0.93 | 0.69 | 0.65 |
| Inventory Turnover | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 74.84 | 74.53 | 80.41 | 85.02 | 80.77 | 89.78 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.8% | 0.6% | 1.0% | — | — | — | — |
| Payout Ratio | 32.0% | 32.0% | 30.7% | 261.5% | 546.1% | 89.3% | 3.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.4% | 2.0% | 3.2% | — | — | — | — |
| FCF Yield | 3.0% | 2.5% | 2.9% | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | — | — | — | — |
| Total Shareholder Yield | 0.8% | 0.6% | 1.0% | — | — | — | — |
| Shares Outstanding | — | $203M | $201M | $200M | $200M | $200M | $200M |
Includes 30+ ratios · 6 years · Updated daily
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Quick answers to the most common questions about buying ULS stock.
UL Solutions Inc.'s current P/E ratio is 41.2x. The historical average is 40.0x. This places it at the 50th percentile of its historical range.
UL Solutions Inc.'s current EV/EBITDA is 18.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.3x.
UL Solutions Inc.'s return on equity (ROE) is 29.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 22.7%.
Based on historical data, UL Solutions Inc. is trading at a P/E of 41.2x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
UL Solutions Inc.'s current dividend yield is 0.78% with a payout ratio of 32.0%.
UL Solutions Inc. has 49.1% gross margin and 17.1% operating margin. Operating margin between 10-20% is typical for established companies.
UL Solutions Inc.'s Debt/EBITDA ratio is 1.1x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Goodwill impairment and leverage
Metrics are mathematically derived from official filings.
Premium Multiple Justified by Growth
ULS trades at 48.8x trailing earnings and 21.4x EV/EBITDA, well above peers like BV and ICFI, reflecting its high-margin, asset-light model and steady growth.
The forward P/E of 33.7x implies the market expects continued earnings acceleration, but the PEG of 7.34 suggests the growth rate is not sufficient to justify the multiple on a growth-adjusted basis. Compared to peers, ULS's EV/EBITDA of 21.4x is at a premium to TransUnion's 13.6x and ICFI's 10.6x, indicating investors are paying for quality and stability. However, the high P/B of 12.2x may be misleading given the significant goodwill on the balance sheet, which inflates book value but does not reflect tangible asset efficiency.
Margin Expansion Drives Profitability
Gross margin improved to 51.1% in 2026Q2 from 47.6% in 2024Q1, while operating margin rose to 18.4% from 13.6%, as per financial statements, indicating strong pricing power and operational leverage.
The consistent expansion in gross and operating margins over the past ten quarters suggests that ULS is benefiting from scale and cost discipline. Net margin volatility, swinging from 8.4% to 30.1%, is driven by non-operating items, so operating margin is the more reliable indicator of underlying earning power. The 2026Q2 net margin of 30.1% appears to be an outlier, likely due to one-time tax benefits or other non-recurring gains, and investors should focus on the stable operating margin trend.
ROIC Stable Despite Equity Growth
ROIC has remained in a tight 4.9%-7.0% range over the last ten quarters, with 2026Q2 at 6.7%, as reported, indicating that returns on invested capital are not compounding despite margin expansion.
While ROE has improved to 16.6% in 2026Q2, this is partly due to a shrinking equity base from buybacks and debt repayment. ROIC, which is a more accurate measure of operational efficiency, has stayed flat, suggesting that the company is not generating incremental returns on new investments. The increase in PPE from $702M to $932M over the period has not yet translated into higher ROIC, which may indicate that capital expenditures are not yet yielding expected returns or that the asset base is growing faster than operating income.
Working Capital Efficiency Stable
DSO has remained steady around 73-82 days over the past ten quarters, with 2026Q2 at 80 days, as per quarterly reports, indicating consistent receivables management and no deterioration in collection efficiency.
The stable DSO suggests that ULS maintains good control over its receivables, which is important for a services business with recurring revenue. The cash conversion cycle is not fully calculable due to missing DIO data, but the stable DSO and DPO (ranging from 32 to 42 days) imply that working capital needs are predictable. The asset turnover ratio has been flat at 0.26-0.27, indicating that the company is not becoming more efficient in generating sales from its asset base, which is typical for a service-oriented business with significant goodwill.
Deleveraging Strengthens Balance Sheet
D/E ratio fell from 1.49 in 2024Q1 to 0.34 in 2026Q2, with D/EBITDA down to 1.61 from 7.73, as reported, indicating a significant reduction in financial risk and improved debt service capacity.
The dramatic deleveraging, with total debt reduced from $1.0B to $551M, has substantially improved interest coverage from 5.87x to 68.60x, as per financial statements. This suggests that ULS has ample capacity to service its debt and may be positioning for future investments or acquisitions. The lower leverage also reduces refinancing risk, especially in a rising interest rate environment. However, the remaining debt and the large goodwill balance still warrant monitoring, as any impairment could impact equity and leverage ratios.
Liquidity Position Strengthens
Current ratio improved to 1.42 in 2026Q2 from 1.27 in 2024Q1, with cash rising to $434M, as per balance sheet data, indicating a solid short-term liquidity buffer.
The quick ratio equals the current ratio at 1.42, suggesting that inventory is not a significant component of current assets, which is typical for a services business. The strengthening liquidity position provides a cushion against operational disruptions or economic downturns. However, the current ratio is still below the 2.0 threshold often considered conservative, but given the stable cash flows and low leverage, the liquidity risk appears manageable. Investors should monitor any large capital commitments that could strain this buffer.
Premium Valuation vs. Peers
ULS's P/E of 48.8x and EV/EBITDA of 21.4x are higher than most peers, including TransUnion and ICFI, but its ROE of 16.6% and net margin of 30.1% are among the strongest, as per peer data.
Compared to peers, ULS commands a premium multiple, which appears justified by its superior profitability metrics. Its net margin of 30.1% in 2026Q2 is significantly higher than the peer average, though this is partly due to non-recurring items. The ROE of 16.6% is competitive with nVent and TransUnion, but lower than Exponent's 31.5%, indicating that ULS is not the most efficient capital allocator in the group. The valuation gap may narrow if ULS fails to sustain its margin expansion or if growth decelerates.
Misapplied P/E Ratio
The trailing P/E of 48.8x is misleading for ULS due to volatile net income from non-operating items; investors should use EV/EBITDA or P/FCF to better assess valuation, as per reported figures.
The P/E ratio is commonly misapplied to ULS because its net income is subject to significant swings from non-operating items, such as tax benefits or one-time gains, which distort the earnings figure. For example, the 2026Q2 net margin of 30.1% is not sustainable, and using trailing P/E would overstate the valuation. Instead, EV/EBITDA of 21.4x provides a cleaner picture of operating value, and P/FCF of 38.9x reflects the company's cash generation, which is more stable. Investors should focus on these metrics to avoid being misled by earnings volatility.