Latest Ratios: P/E Ratio 292.0x · EV/EBITDA 21.7x · ROE 3.3%. (2018–2025 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 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.9B | $3.6B | $8.3B | $4.1B | $2.2B | $2.3B | $4.6B | — | — |
| Enterprise Value | $1.9B | $3.6B | $8.3B | $4.1B | $2.2B | $2.3B | $4.3B | — | — |
| P/E Ratio → | 292.00 | 499.25 | — | — | — | — | — | — | — |
| P/S Ratio | 2.53 | 4.81 | 12.41 | 7.15 | 4.42 | 5.51 | 12.23 | — | — |
| P/B Ratio | 8.13 | 13.90 | 46.13 | 16.17 | 9.45 | 10.19 | 19.98 | — | — |
| P/FCF | 39.72 | 75.65 | 106.47 | 670.78 | 633.42 | 49.98 | 171.41 | — | — |
| P/OCF | 11.42 | 21.75 | 50.20 | 55.04 | 34.01 | 25.98 | 76.97 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.87 | 12.49 | 7.15 | 4.38 | 5.41 | 11.43 | — | — |
| EV / EBITDA | 21.73 | 40.92 | 98.56 | 71.81 | 40.57 | 54.98 | — | — | — |
| EV / EBIT | — | 481.03 | 545.42 | — | — | — | — | — | — |
| EV / FCF | — | 76.61 | 107.19 | 670.58 | 628.08 | 49.03 | 160.12 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 60.7% | 60.7% | 63.9% | 60.9% | 60.7% | 62.0% | 55.9% | 65.7% | 64.9% |
| Operating Margin | -1.0% | -1.0% | -0.3% | -3.1% | -1.6% | -0.7% | -28.0% | 9.9% | -1.0% |
| Net Profit Margin | 1.0% | 1.0% | -7.9% | -2.3% | -2.5% | -0.3% | -20.0% | 9.7% | -2.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 3.3% | 3.3% | -24.4% | -5.4% | -5.4% | -0.6% | -128.4% | — | — |
| ROA | 0.6% | 0.6% | -5.5% | -1.8% | -1.8% | -0.2% | -18.2% | 12.9% | -2.8% |
| ROIC | -2.2% | -2.2% | -0.7% | -5.7% | -3.1% | -3.9% | — | — | — |
| ROCE | -1.2% | -1.2% | -0.5% | -5.5% | -2.6% | -1.0% | -106.4% | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.39 | 1.39 | 1.96 | 0.26 | 0.32 | 0.12 | 0.00 | — | — |
| Debt / EBITDA | 4.04 | 4.04 | 4.16 | 1.18 | 1.39 | 0.68 | — | 0.90 | 2.49 |
| Net Debt / Equity | — | 0.18 | 0.31 | -0.00 | -0.08 | -0.19 | -1.32 | — | — |
| Net Debt / EBITDA | 0.51 | 0.51 | 0.66 | -0.02 | -0.34 | -1.07 | — | -0.43 | -0.04 |
| Debt / FCF | — | 0.96 | 0.72 | -0.20 | -5.33 | -0.95 | -11.29 | -0.44 | -0.02 |
| Interest Coverage | — | — | — | -4.21 | -3.95 | -2.99 | -33.67 | 15.65 | -1.34 |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.98 | 0.98 | 1.00 | 0.60 | 0.60 | 0.53 | 1.38 | 0.49 | 0.55 |
| Quick Ratio | 0.98 | 0.98 | 1.00 | 0.60 | 0.60 | 0.53 | 1.38 | 0.49 | 0.55 |
| Cash Ratio | 0.55 | 0.55 | 0.57 | 0.18 | 0.26 | 0.20 | 1.04 | 0.23 | 0.23 |
| Asset Turnover | — | 0.59 | 0.57 | 0.75 | 0.68 | 0.63 | 0.67 | 1.21 | 1.27 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 89.46 | 90.01 | 90.39 | 76.39 | 65.98 | 75.17 | 79.89 | 83.39 |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | 0.0% | 0.1% | 3.2% | — | — |
| Payout Ratio | — | — | — | — | — | — | — | 92.0% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.3% | 0.2% | — | — | — | — | — | — | — |
| FCF Yield | 2.5% | 1.3% | 0.9% | 0.1% | 0.2% | 2.0% | 0.6% | — | — |
| Buyback Yield | 0.5% | 0.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.5% | 0.3% | 0.0% | 0.0% | 0.0% | 0.1% | 3.2% | — | — |
| Shares Outstanding | — | $180M | $155M | $152M | $150M | $148M | $132M | $146M | $130M |
Includes 30+ ratios · 8 years · Updated daily
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Quick answers to the most common questions about buying VERX stock.
Vertex, Inc.'s current P/E ratio is 292.0x. This places it at the 50th percentile of its historical range.
Vertex, Inc.'s current EV/EBITDA is 21.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 61.4x.
Vertex, Inc.'s return on equity (ROE) is 3.3%. The historical average is -26.8%.
Based on historical data, Vertex, Inc. is trading at a P/E of 292.0x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Vertex, Inc. has 60.7% gross margin and -1.0% operating margin.
Vertex, Inc.'s Debt/EBITDA ratio is 4.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
ERP native tax engine threat
Metrics are mathematically derived from official filings.
Margin Compression Masks Underlying Economics
Gross margin averaged 63% over the last ten quarters, but operating margin remained negative or thin, per reported financials, indicating that high fixed costs and services mix are suppressing profitability despite revenue growth.
The gross margin of 64.4% in Q2 2026 is below the 70%+ typical of pure-play SaaS peers, reflecting the drag from professional services and legacy on-premise infrastructure. Operating margin has been negative or below 3% in most quarters, suggesting that SG&A and R&D expenses are scaling with revenue, preventing operating leverage. The Q2 2026 EPS miss versus consensus, despite revenue at the high end of guidance, reinforces that margin expansion is not yet materializing, and investors should monitor whether the SaaS mix shift eventually lifts operating margins.
Returns on Capital Remain Subdued
ROIC has been negative or below 2% in most quarters, with Q2 2026 at -0.9%, as reported in financial statements, indicating that the company is not yet generating returns above its cost of capital.
ROE and ROA have also been volatile, with ROE swinging from -30.9% in Q4 2024 to 5.9% in Q1 2025, reflecting the impact of one-time items and the transition to SaaS. The negative ROIC in Q2 2026 suggests that the heavy investment in R&D and cloud infrastructure has not yet translated into profitable returns. This may indicate that the company is in an investment phase, but investors should expect improving ROIC as the cloud transition matures and operating leverage kicks in.
Working Capital Efficiency Shows Mixed Signals
DSO improved from 80 days in Q1 2024 to 70 days in Q2 2026, per reported data, while DPO rose from 34 to 46 days, indicating better collection and payment terms, but the current ratio fell below 1.
The improvement in DSO suggests more efficient receivables management, while the increase in DPO indicates the company is taking longer to pay suppliers, which can improve cash flow. However, the current ratio of 0.87 in Q2 2026 indicates that current liabilities exceed current assets, which may signal liquidity pressure. The negative working capital position is common for software companies with high deferred revenue, but the trend warrants monitoring as the company continues to invest in growth.
Leverage Creeps Higher as Equity Base Shrinks
Debt-to-equity rose from 0.26 in Q1 2024 to 1.45 by Q2 2026, per balance sheet data, while interest coverage data is unavailable, indicating increased financial risk as retained losses erode equity.
Total debt has remained near $350M, but equity has declined due to accumulated losses, pushing the D/E ratio higher. The D/EBITDA ratio of 10.68 in Q2 2026 is elevated, though this is partly due to low EBITDA. The lack of interest coverage data limits assessment, but the rising leverage suggests that the company is relying more on debt to fund its transition. Investors should monitor whether cash flow generation can service this debt as the company scales.
Liquidity Buffer Thins as Current Ratio Dips
The current ratio fell from 1.17 in Q2 2024 to 0.87 in Q2 2026, per reported figures, while cash declined to $230.5M, indicating a tightening liquidity position that could strain under stress.
The quick ratio mirrors the current ratio, suggesting that inventory is not a factor, but the sub-1.0 ratio indicates that current liabilities exceed liquid assets. This is partly due to the growth in deferred revenue, which is a liability but also a sign of future revenue. However, the declining cash position and negative working capital could become a concern if the company faces a downturn or unexpected expenses. The company's ability to generate positive operating cash flow, as seen in Q2 2026, provides some cushion, but the trend warrants monitoring.
Misapplied Metric: Gross Margin as SaaS Proxy
Gross margin is often compared to pure-play SaaS peers, but Vertex's 60-65% gross margin, per reported data, is misleading because it includes lower-margin professional services and legacy infrastructure costs.
Investors may incorrectly view Vertex's gross margin as a sign of inferior economics, but the company's model requires high-touch services for enterprise implementations, which depresses the metric. A better metric is the gross margin on subscription revenue alone, which is likely higher and more comparable to SaaS peers. Additionally, the negative operating margin is not indicative of the company's cash generation, as operating cash flow consistently exceeds net income. Investors should focus on subscription revenue growth and cash flow conversion rather than GAAP margins to assess the underlying health of the business.