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Latest Ratios: P/E Ratio 261.2x · EV/EBITDA 74.4x · ROE 4.8%. (1996–2025 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 | $9.7B | $2.3B | $1.5B | $2.6B | $3.1B | $4.1B | $2.9B | $3.1B | $2.3B | $2.5B | $1.6B |
| Enterprise Value | $9.9B | $2.5B | $1.7B | $2.8B | $3.3B | $4.2B | $3.0B | $3.1B | $2.5B | $2.4B | $1.7B |
| P/E Ratio → | 261.20 | 66.67 | — | 103.00 | 201.08 | 60.24 | 104.17 | 394.36 | — | 14.83 | — |
| P/S Ratio | 8.91 | 2.08 | 1.53 | 2.32 | 2.41 | 3.44 | 2.57 | 2.72 | 2.66 | 3.04 | 1.71 |
| P/B Ratio | 11.33 | 2.89 | 2.24 | 3.72 | 4.64 | 5.40 | 4.11 | 4.23 | 3.23 | 3.14 | 2.25 |
| P/FCF | 155.89 | 36.40 | 15.78 | 40.75 | 29.53 | 21.59 | 28.17 | 32.76 | 98.96 | 59.64 | 89.16 |
| P/OCF | 107.63 | 25.13 | 13.14 | 22.50 | 17.51 | 16.97 | 21.54 | 22.14 | 35.23 | 30.87 | 29.33 |
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 | — | 2.33 | 1.74 | 2.57 | 2.56 | 3.48 | 2.67 | 2.77 | 2.91 | 2.95 | 1.83 |
| EV / EBITDA | 74.36 | 18.90 | 17.16 | 16.86 | 12.67 | 17.50 | 15.35 | 16.55 | 27.21 | 25.79 | 18.91 |
| EV / EBIT | 140.11 | 36.50 | 41.06 | 32.37 | 37.36 | 28.66 | 23.79 | 42.53 | 219.60 | 10.43 | — |
| EV / FCF | — | 40.74 | 18.01 | 45.11 | 31.27 | 21.81 | 29.30 | 33.37 | 108.40 | 57.88 | 95.22 |
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 | 56.8% | 56.8% | 56.9% | 57.0% | 59.1% | 56.8% | 55.5% | 54.3% | 53.4% | 58.2% | 59.0% |
| Operating Margin | 6.5% | 6.5% | 4.3% | 9.0% | 14.3% | 11.3% | 7.9% | 6.8% | 1.2% | 4.3% | 1.9% |
| Net Profit Margin | 3.2% | 3.2% | -2.6% | 2.3% | 1.2% | 5.6% | 2.5% | 0.5% | -5.5% | 20.6% | -10.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 4.8% | 4.8% | -3.8% | 3.7% | 2.2% | 9.2% | 4.0% | 0.7% | -6.4% | 22.6% | -11.1% |
| ROA | 1.9% | 1.9% | -1.4% | 1.4% | 0.8% | 3.6% | 1.6% | 0.3% | -2.4% | 8.8% | -5.1% |
| ROIC | 5.5% | 5.5% | 3.5% | 8.2% | 16.7% | 12.5% | 8.4% | 6.7% | 0.9% | 3.5% | 1.3% |
| ROCE | 4.9% | 4.9% | 2.9% | 6.7% | 13.9% | 9.9% | 5.9% | 5.1% | 0.6% | 2.1% | 1.1% |
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 | 0.89 | 0.89 | 1.01 | 1.13 | 1.11 | 0.97 | 0.93 | 0.80 | 1.16 | 1.18 | 0.85 |
| Debt / EBITDA | 5.18 | 5.18 | 6.76 | 4.63 | 2.86 | 3.10 | 3.33 | 3.06 | 8.90 | 10.03 | 6.72 |
| Net Debt / Equity | — | 0.34 | 0.32 | 0.40 | 0.27 | 0.05 | 0.16 | 0.08 | 0.31 | -0.09 | 0.15 |
| Net Debt / EBITDA | 2.01 | 2.01 | 2.12 | 1.63 | 0.71 | 0.17 | 0.59 | 0.30 | 2.37 | -0.79 | 1.20 |
| Debt / FCF | — | 4.33 | 2.23 | 4.36 | 1.75 | 0.22 | 1.13 | 0.61 | 9.44 | -1.76 | 6.06 |
| Interest Coverage | 2.31 | 2.31 | 1.38 | 3.24 | 3.79 | 9.90 | 3.79 | 2.15 | 0.25 | 5.32 | -0.29 |
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 | 1.50 | 1.50 | 3.55 | 2.75 | 2.72 | 1.49 | 3.92 | 3.23 | 2.05 | 7.29 | 5.35 |
| Quick Ratio | 1.30 | 1.30 | 3.16 | 2.41 | 2.42 | 1.36 | 3.57 | 2.87 | 1.89 | 7.08 | 5.13 |
| Cash Ratio | 0.72 | 0.72 | 1.99 | 1.52 | 1.52 | 0.94 | 2.34 | 1.84 | 1.39 | 6.28 | 4.27 |
| Asset Turnover | — | 0.54 | 0.58 | 0.60 | 0.71 | 0.61 | 0.64 | 0.62 | 0.43 | 0.38 | 0.54 |
| Inventory Turnover | 3.97 | 3.97 | 4.46 | 4.10 | 4.80 | 5.46 | 6.08 | 5.03 | 4.42 | 7.07 | 7.22 |
| Days Sales Outstanding | — | 98.70 | 89.35 | 87.08 | 80.72 | 83.91 | 83.74 | 76.76 | 91.11 | 54.16 | 59.77 |
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 | 0.4% | 1.5% | — | 1.0% | 0.5% | 1.7% | 1.0% | 0.3% | — | 6.7% | — |
| FCF Yield | 0.6% | 2.7% | 6.3% | 2.5% | 3.4% | 4.6% | 3.5% | 3.1% | 1.0% | 1.7% | 1.1% |
| Buyback Yield | 0.2% | 0.7% | 1.3% | 3.3% | 7.6% | 1.0% | 1.5% | 0.4% | 1.8% | 3.7% | 2.9% |
| Total Shareholder Yield | 0.2% | 0.7% | 1.3% | 3.3% | 7.6% | 1.0% | 1.5% | 0.4% | 1.8% | 3.7% | 2.9% |
| Shares Outstanding | — | $226M | $223M | $227M | $238M | $236M | $234M | $231M | $227M | $235M | $234M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying VIAV stock.
Viavi Solutions Inc.'s current P/E ratio is 261.2x. The historical average is 59.6x. This places it at the 100th percentile of its historical range.
Viavi Solutions Inc.'s current EV/EBITDA is 74.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 21.9x.
Viavi Solutions Inc.'s return on equity (ROE) is 4.8%. The historical average is -20.5%.
Based on historical data, Viavi Solutions Inc. is trading at a P/E of 261.2x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Viavi Solutions Inc. has 56.8% gross margin and 6.5% operating margin.
Viavi Solutions Inc.'s Debt/EBITDA ratio is 5.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Margin compression from cost structure
Metrics are mathematically derived from official filings.
Valuation Disconnect from Cyclical Earnings
VIAV's forward P/E of 38.99 appears elevated relative to its historical earnings power and peers like Keysight, suggesting the market is pricing in a significant earnings recovery that has yet to materialize in operating margins.
The trailing P/E of 243.60 is distorted by volatile quarterly earnings, making the forward multiple more relevant. However, the forward P/E of 38.99 is still a premium to Keysight's 65.57 on a PEG basis, but VIAV's PEG of 53.37 indicates the market is assigning minimal value to future growth. This valuation appears to be pricing in the cyclical upswing in network testing demand, but the persistent operating margin compression to just 2.5% in Q4 FY26 suggests the earnings recovery may be slower than anticipated.
Gross Margin Strength Masked by SG&A Surge
Despite gross margins expanding to a period-high 62.5% in Q4 FY26, operating margins collapsed to 2.5%, indicating that SG&A expenses, which reached 35.6% of revenue, are overwhelming the benefits of a favorable product mix.
The divergence between gross and operating margin is the most critical profitability trend. The 62.5% gross margin suggests strong pricing power in the OSP segment and a favorable shift in product mix. However, the operating margin of 2.5% is the lowest in the observed period, implying severe negative operating leverage where SG&A growth is outpacing revenue growth. This suggests the company's cost structure is not scaling efficiently with the cyclical revenue surge, potentially due to increased sales commissions, R&D investment, or acquisition integration costs.
Capital Efficiency Remains Subdued
ROIC of 0.6% in Q4 FY26, while positive, remains far below the cost of capital and lags peers like Keysight (11.5%), indicating the company is not generating adequate returns on the significant capital invested in its asset base.
The ROIC trend has been volatile, swinging from negative to low single digits, but has not shown a sustained upward trajectory. This is driven by both low net margins and modest asset turnover of 0.17. The low ROIC suggests that the company's acquisitions and R&D investments have not yet translated into efficient profit generation. For a technology company, this level of return on capital is concerning and indicates that growth is being funded without creating commensurate shareholder value.
Working Capital Cycle Extends Further
The cash conversion cycle lengthened to 107 days in Q4 FY26, driven by a significant increase in days inventory outstanding to 83 days, which may signal inventory buildup ahead of anticipated demand or potential obsolescence risk.
The CCC has trended upward from 124 days a year ago, but the composition has shifted. The increase in DIO to 83 days is notable and could be a strategic build for the 5G cycle or a sign of slowing inventory turnover. Days sales outstanding of 72 days is stable, while days payable outstanding of 48 days suggests the company is not extending supplier payment terms to fund the inventory build. This pattern may indicate a mismatch between production timing and customer delivery schedules.
Deleveraging Post-Acquisition Improves Profile
The debt-to-equity ratio improved sharply to 0.48 in Q4 FY26 from a peak of 1.59 in Q2 FY26, and interest coverage recovered to 4.16x, suggesting the balance sheet has stabilized following a period of acquisition-driven leverage.
The rapid deleveraging from the Q2 FY26 peak indicates successful debt repayment or equity issuance following a major acquisition. The current D/E of 0.48 is now below the peer average, and interest coverage of 4.16x provides a comfortable buffer. However, the volatility in this metric over the past year highlights the company's reliance on M&A for growth, which can create periodic spikes in financial risk. The current leverage level appears manageable but warrants monitoring if further acquisitions are pursued.
The Misleading Power of Gross Margin
The most commonly misapplied ratio for VIAV is its gross margin, which at 62.5% suggests a high-quality business, but obscures the reality that operating margins are just 2.5% due to an unsustainable SG&A structure.
Investors often focus on VIAV's high gross margin as evidence of its moat, particularly in the OSP segment. However, this metric is misleading because it does not account for the company's high fixed-cost structure in R&D and SG&A, which are necessary to compete in the fast-evolving network testing market. The true measure of earning power is operating margin, which reveals that the company is currently generating minimal profit from its operations despite strong top-line growth. A more appropriate metric would be free cash flow margin, which at 12.5% in Q4 FY26, better reflects the cash generation potential after accounting for capital expenditures.