Latest Ratios: P/E Ratio 19.4x · EV/EBITDA 13.4x · ROE 19.7%. (1998–2025 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 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $23.0B | $23.3B | $17.1B | $10.9B | $13.5B | $10.2B | $6.8B | $3.9B | $4.8B | $6.6B | $6.7B |
| Enterprise Value | $21.5B | $21.8B | $15.7B | $10.4B | $13.3B | $10.1B | $6.8B | $4.0B | $4.4B | $6.2B | $5.7B |
| P/E Ratio → | 19.44 | 17.49 | 14.32 | 11.10 | 18.54 | 21.48 | 13.15 | — | 8.13 | 15.89 | 9.41 |
| P/S Ratio | 7.22 | 7.33 | 5.95 | 4.70 | 6.97 | 6.06 | 4.56 | 2.66 | 2.94 | 3.85 | 4.20 |
| P/B Ratio | 3.66 | 3.29 | 2.66 | 1.83 | 2.81 | 2.58 | 1.99 | 1.39 | 1.72 | 3.16 | 3.60 |
| P/FCF | 22.09 | 22.43 | 15.84 | 14.62 | 20.32 | 21.41 | 9.72 | — | 8.07 | 17.13 | 11.18 |
| P/OCF | 14.73 | 14.95 | 12.89 | 11.17 | 16.81 | 17.09 | 8.96 | — | 6.16 | 14.01 | 10.43 |
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 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.86 | 5.46 | 4.48 | 6.88 | 6.01 | 4.61 | 2.74 | 2.69 | 3.59 | 3.56 |
| EV / EBITDA | 13.40 | 13.61 | 10.84 | 8.42 | 12.93 | 16.71 | 10.62 | — | 5.20 | 7.32 | 5.20 |
| EV / EBIT | 14.15 | 12.59 | 9.93 | 7.81 | 13.47 | 14.74 | 11.45 | — | 5.45 | 6.05 | 5.37 |
| EV / FCF | — | 20.97 | 14.54 | 13.94 | 20.08 | 21.21 | 9.81 | — | 7.36 | 15.95 | 9.48 |
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 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 87.9% | 87.9% | 89.2% | 88.9% | 92.4% | 92.7% | 92.7% | 91.9% | 87.8% | 93.9% | 95.5% |
| Operating Margin | 47.7% | 47.7% | 47.9% | 50.9% | 50.6% | 33.0% | 40.0% | -12.9% | 49.5% | 47.2% | 66.4% |
| Net Profit Margin | 41.9% | 41.9% | 41.5% | 42.3% | 37.6% | 28.2% | 34.7% | -7.2% | 36.2% | 24.2% | 44.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 19.7% | 19.7% | 19.2% | 18.3% | 16.6% | 12.9% | 16.7% | -3.8% | 24.1% | 21.1% | 41.2% |
| ROA | 17.5% | 17.5% | 16.4% | 14.9% | 13.0% | 9.7% | 12.1% | -2.9% | 18.8% | 16.1% | 31.6% |
| ROIC | 21.4% | 21.4% | 19.6% | 17.6% | 17.3% | 11.4% | 14.0% | -5.3% | 30.1% | 49.2% | 98.8% |
| ROCE | 21.8% | 21.8% | 21.2% | 19.6% | 18.5% | 12.1% | 15.3% | -5.7% | 29.0% | 36.8% | 56.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | 0.05 | 0.12 | 0.17 | 0.20 | 0.24 | 0.31 | 0.09 | 0.12 | — |
| Debt / EBITDA | 0.02 | 0.02 | 0.21 | 0.57 | 0.78 | 1.32 | 1.24 | — | 0.30 | 0.30 | — |
| Net Debt / Equity | — | -0.21 | -0.22 | -0.08 | -0.03 | -0.02 | 0.02 | 0.04 | -0.15 | -0.22 | -0.55 |
| Net Debt / EBITDA | -0.95 | -0.95 | -0.96 | -0.41 | -0.16 | -0.16 | 0.10 | — | -0.50 | -0.54 | -0.94 |
| Debt / FCF | — | -1.46 | -1.29 | -0.68 | -0.24 | -0.20 | 0.09 | — | -0.71 | -1.17 | -1.70 |
| Interest Coverage | 88.89 | 88.89 | 36.87 | 22.49 | 30.52 | 36.93 | 25.38 | -2.73 | 57.73 | 113.60 | 271.59 |
Net cash position: cash ($1.6B) exceeds total debt ($38M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 6.60 | 6.60 | 5.25 | 4.41 | 9.85 | 7.61 | 6.70 | 4.03 | 6.39 | 3.26 | 4.29 |
| Quick Ratio | 6.28 | 6.28 | 5.03 | 4.28 | 9.55 | 7.30 | 6.44 | 3.83 | 6.03 | 3.01 | 3.98 |
| Cash Ratio | 2.78 | 2.78 | 4.43 | 3.72 | 8.27 | 6.32 | 5.68 | 3.21 | 5.12 | 2.09 | 3.16 |
| Asset Turnover | — | 0.40 | 0.39 | 0.32 | 0.32 | 0.33 | 0.32 | 0.37 | 0.48 | 0.60 | 0.69 |
| Inventory Turnover | 2.10 | 2.10 | 1.96 | 2.30 | 1.44 | 1.31 | 1.25 | 1.26 | 1.97 | 0.98 | 0.73 |
| Days Sales Outstanding | — | 40.16 | 35.43 | 43.74 | 41.55 | 43.03 | 38.73 | 38.14 | 39.40 | 62.85 | 48.97 |
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 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.1% | 5.7% | 7.0% | 9.0% | 5.4% | 4.7% | 7.6% | — | 12.3% | 6.3% | 10.6% |
| FCF Yield | 4.5% | 4.5% | 6.3% | 6.8% | 4.9% | 4.7% | 10.3% | — | 12.4% | 5.8% | 8.9% |
| Buyback Yield | 4.3% | 4.3% | 5.9% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.0% | 3.8% | 7.4% |
| Total Shareholder Yield | 4.3% | 4.3% | 5.9% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.0% | 3.8% | 7.4% |
| Shares Outstanding | — | $48M | $49M | $50M | $49M | $47M | $45M | $44M | $44M | $45M | $47M |
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying UTHR stock.
United Therapeutics Corporation's current P/E ratio is 19.4x. The historical average is 31.5x. This places it at the 60th percentile of its historical range.
United Therapeutics Corporation's current EV/EBITDA is 13.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 21.0x.
United Therapeutics Corporation's return on equity (ROE) is 19.7%. The historical average is 5.3%.
Based on historical data, United Therapeutics Corporation is trading at a P/E of 19.4x. This is at the 60th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
United Therapeutics Corporation has 87.9% gross margin and 47.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
United Therapeutics Corporation's Debt/EBITDA ratio is 0.0x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Treprostinil franchise concentration
Metrics are mathematically derived from official filings.
Margin Resilience Amid Revenue Deceleration
Gross margin remains exceptionally high at 87.3% in 2026Q2, per reported financials, though operating margin has compressed from 52.6% to 42.2% over ten quarters, signaling fading operating leverage.
The 87.3% gross margin underscores the pricing power of the treprostinil franchise, but the 10.4 percentage point decline in operating margin since 2024Q1 suggests that R&D and SG&A costs are growing faster than revenue. Net margin of 42.5% in 2026Q2 appears supported by tax benefits or non-operating gains, masking the underlying operating pressure. Investors should monitor whether margin compression is a structural shift or a temporary investment cycle.
Stable Returns Masked by Cash Hoard
ROIC has hovered near 5% over ten quarters, per financial statements, despite a fortress balance sheet with zero debt and $1.8B cash, suggesting the return on invested capital is diluted by excess liquidity.
ROIC of 5.3% in 2026Q2 is consistent with the prior year, but this stability masks the impact of a growing cash pile that earns minimal returns. The company's heavy investment in PP&E (up from $1.1B to $1.9B) and speculative R&D may not yet be generating incremental returns. If the cash were deployed more efficiently or returned to shareholders, ROIC could be higher, but the current strategy appears to prioritize optionality over near-term return enhancement.
Working Capital Efficiency Shows Mixed Signals
Cash conversion cycle turned sharply negative to -249 days in 2026Q2, per reported data, driven by a DPO of 456 days, indicating significant supplier leverage, though DSO and DIO remain stable.
The negative CCC is primarily a function of extended payables, which may reflect favorable payment terms or timing effects rather than operational efficiency. DSO has remained in the mid-30s, suggesting consistent collection practices, while DIO has fluctuated between 122 and 185 days, indicating inventory management variability. The extreme DPO spike in 2026Q2 warrants investigation, as it may be a one-time event or a sign of strained supplier relationships.
Debt-Free Balance Sheet Eliminates Refinancing Risk
Total debt has been reduced to zero by 2026Q2, per SEC filings, with interest coverage exceeding 129x, indicating the company has no debt service obligations and is insulated from rising rate environments.
The elimination of debt from $600M in 2024Q1 to zero represents a strategic shift toward financial independence. With interest coverage above 100x, the company has ample earnings to cover any hypothetical interest expense, but the absence of debt also means no tax shield. This fortress balance sheet provides significant flexibility for capital allocation, including continued buybacks and funding of moonshot R&D projects.
Ample Liquidity Provides Shock Absorption
Current ratio improved to 5.73 in 2026Q2, per financial statements, with cash reserves of $1.8B, indicating the company can withstand severe operational or market disruptions without liquidity stress.
The current ratio of 5.73 is well above the 2:1 benchmark, and the quick ratio of 5.41 suggests minimal reliance on inventory for liquidity. This position has strengthened over the past two years, from 3.77 in 2024Q1, reflecting retained earnings and disciplined working capital management. Even under a scenario of prolonged revenue decline, the company appears capable of funding operations and strategic investments for several years without external financing.
P/E Misleads on Franchise Durability
The trailing P/E of 18.42, per current valuation multiples, appears reasonable, but it obscures the concentration risk in the treprostinil franchise and the potential for margin compression from competitive entry.
The P/E ratio fails to capture the quality of earnings, which are heavily dependent on a single molecule family. A more appropriate metric would be EV/EBITDA, which at 12.64 is lower and adjusts for the company's net cash position, but even this does not reflect the risk of generic competition or the impact of heavy R&D spending on future cash flows. Investors should consider a sum-of-the-parts valuation that separates the stable treprostinil business from the speculative organ manufacturing segment, which is currently expensed as R&D and depresses reported earnings.