Latest Ratios: P/E Ratio 17.5x · EV/EBITDA 10.4x · ROE 80.4%. (2014–2025 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 | $3.7B | $4.6B | $5.5B | $5.2B | $4.6B | $5.7B | $3.6B | $4.2B | $4.2B | $4.8B | $4.0B |
| Enterprise Value | $5.3B | $6.2B | $7.0B | $6.9B | $6.7B | $7.7B | $5.1B | $5.4B | $5.5B | $5.8B | $4.6B |
| P/E Ratio → | 17.53 | 21.90 | 25.99 | 3.69 | 10.78 | 13.62 | 11.27 | 20.03 | 25.61 | 15.74 | 14.68 |
| P/S Ratio | 2.14 | 2.70 | 3.39 | 3.63 | 3.70 | 5.52 | 4.91 | 1.74 | 1.85 | 2.30 | 2.07 |
| P/B Ratio | 10.92 | 13.64 | 29.54 | 25.80 | 14.91 | 42.54 | — | — | — | — | — |
| P/FCF | 96.49 | 121.53 | 134.70 | — | 30.04 | 19.02 | 12.86 | 19.19 | 18.67 | — | 16.30 |
| P/OCF | 12.34 | 15.54 | 20.68 | — | 16.08 | 14.17 | 9.60 | 12.81 | 13.24 | — | 12.84 |
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 | — | 3.64 | 4.35 | 4.78 | 5.41 | 7.40 | 7.03 | 2.26 | 2.41 | 2.77 | 2.37 |
| EV / EBITDA | 10.37 | 12.24 | 19.13 | 20.56 | 22.94 | 25.39 | 25.44 | 11.77 | 12.27 | 10.04 | 9.74 |
| EV / EBIT | 13.55 | 15.93 | 19.21 | 24.67 | 31.36 | 20.83 | 23.68 | 16.83 | 14.54 | 11.09 | 10.91 |
| EV / FCF | — | 164.05 | 172.95 | — | 43.97 | 25.51 | 18.39 | 24.89 | 24.28 | — | 18.65 |
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 | 38.5% | 38.5% | 38.2% | 37.7% | 38.5% | 41.7% | 41.4% | 33.9% | 35.3% | 37.3% | 39.5% |
| Operating Margin | 22.8% | 22.8% | 22.7% | 17.1% | 17.8% | 23.1% | 22.0% | 16.7% | 17.3% | 25.5% | 22.3% |
| Net Profit Margin | 12.3% | 12.3% | 13.1% | 98.4% | 34.3% | 40.5% | 43.5% | 8.7% | 7.3% | 14.6% | 14.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 80.4% | 80.4% | 108.8% | 557.0% | 192.4% | 1436.9% | — | — | — | — | 190.2% |
| ROA | 8.2% | 8.2% | 7.9% | 45.0% | 12.8% | 13.5% | 12.4% | 10.6% | 8.8% | 16.3% | 19.5% |
| ROIC | 15.8% | 15.8% | 15.3% | 8.6% | 7.3% | 10.1% | 9.8% | 31.5% | 33.3% | 71.8% | 74.5% |
| ROCE | 17.7% | 17.7% | 15.9% | 9.8% | 8.6% | 9.2% | 7.5% | 25.8% | 27.4% | 37.2% | 41.0% |
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 | 4.93 | 4.93 | 8.76 | 10.21 | 6.99 | 15.42 | — | — | — | — | — |
| Debt / EBITDA | 3.27 | 3.27 | 4.42 | 6.17 | 7.35 | 6.86 | 11.45 | 3.04 | 3.05 | 2.06 | 1.60 |
| Net Debt / Equity | — | 4.77 | 8.39 | 8.19 | 6.92 | 14.50 | — | — | — | — | — |
| Net Debt / EBITDA | 3.17 | 3.17 | 4.23 | 4.95 | 7.27 | 6.46 | 7.66 | 2.70 | 2.84 | 1.71 | 1.23 |
| Debt / FCF | — | 42.52 | 38.25 | — | 13.93 | 6.49 | 5.54 | 5.71 | 5.61 | — | 2.36 |
| Interest Coverage | 5.29 | 5.29 | 5.10 | 7.31 | 3.08 | 3.40 | 2.91 | 4.40 | 6.02 | 12.38 | 46.56 |
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 | 0.70 | 0.70 | 0.72 | 2.59 | 1.76 | 1.82 | 3.24 | 1.88 | 1.76 | 1.65 | 1.82 |
| Quick Ratio | 0.58 | 0.58 | 0.61 | 2.49 | 1.73 | 1.78 | 2.79 | 1.43 | 1.34 | 1.29 | 1.48 |
| Cash Ratio | 0.15 | 0.15 | 0.19 | 2.09 | 0.03 | 0.22 | 1.71 | 0.38 | 0.23 | 0.42 | 0.43 |
| Asset Turnover | — | 0.64 | 0.66 | 0.50 | 0.36 | 0.33 | 0.24 | 1.16 | 1.23 | 1.09 | 1.06 |
| Inventory Turnover | 24.69 | 24.69 | 25.19 | 27.00 | 25.84 | 22.08 | 2.14 | 8.14 | 8.40 | 7.46 | 8.40 |
| Days Sales Outstanding | — | 19.12 | 19.48 | 20.56 | 19.52 | 22.98 | 217.39 | 61.24 | 65.33 | 67.43 | 68.69 |
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 | — | — | — | 0.4% | 2.0% | 1.6% | 2.4% | 1.9% | 1.4% | 0.8% | — |
| Payout Ratio | — | — | — | 1.5% | 21.0% | 21.6% | 26.6% | 38.5% | 34.9% | 13.2% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.7% | 4.6% | 3.8% | 27.1% | 9.3% | 7.3% | 8.9% | 5.0% | 3.9% | 6.4% | 6.8% |
| FCF Yield | 1.0% | 0.8% | 0.7% | — | 3.3% | 5.3% | 7.8% | 5.2% | 5.4% | — | 6.1% |
| Buyback Yield | 2.1% | 1.7% | 4.1% | 29.1% | 3.1% | 2.2% | 1.7% | 0.0% | 7.7% | 1.0% | 0.0% |
| Total Shareholder Yield | 2.1% | 1.7% | 4.1% | 29.5% | 5.1% | 3.8% | 4.0% | 1.9% | 9.0% | 1.9% | 0.0% |
| Shares Outstanding | — | $129M | $131M | $163M | $180M | $184M | $188M | $189M | $197M | $204M | $170M |
Includes 30+ ratios · 12 years · Updated daily
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Quick answers to the most common questions about buying VVV stock.
Valvoline Inc.'s current P/E ratio is 17.5x. The historical average is 16.3x. This places it at the 60th percentile of its historical range.
Valvoline Inc.'s current EV/EBITDA is 10.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.0x.
Valvoline Inc.'s return on equity (ROE) is 80.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 104.1%.
Based on historical data, Valvoline Inc. is trading at a P/E of 17.5x. This is at the 60th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Valvoline Inc. has 38.5% gross margin and 22.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Valvoline Inc.'s Debt/EBITDA ratio is 3.3x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
High leverage and acquisition integration
Metrics are mathematically derived from official filings.
Margin Expansion Amid Revenue Surge
Valvoline's gross margin held at 39.5% in 2026Q3, while operating margin expanded to 20.6%, according to reported figures, indicating pricing power and cost control that outpace the peer average of roughly 35%.
The sequential improvement in operating margin from 14.2% in 2026Q1 to 20.6% in 2026Q3 suggests operating leverage is amplifying profit growth as revenue accelerates. However, net margin volatility—swinging from -7.1% to 11.8% over the same period—implies that non-recurring items and acquisition-related charges distort the underlying earning power. Investors should focus on gross and operating margins as more stable indicators of core profitability, given the noise in net income.
ROIC Recovery Masks Leverage Distortion
ROIC improved to 3.7% in 2026Q3 from 2.1% in 2026Q1, per financial statements, but remains below the cost of capital, suggesting value creation is still constrained by the heavy debt-funded expansion.
ROE spiked to 16.8% in 2026Q3, but this is inflated by a thin equity base of $416.7M relative to total debt of $2.0B. ROIC, at 3.7%, is a more honest measure of economic return, and its modest level indicates that the acquisition-driven growth has not yet generated returns above the cost of capital. The improvement from 2.1% in 2026Q1 is encouraging, but the sustainability depends on whether the recent revenue acceleration translates into sustained operating income growth.
Working Capital Efficiency Holds Steady
Valvoline's cash conversion cycle improved to -2 days in 2026Q3, as reported, with DSO at 17 days and DPO at 32 days, indicating the company is collecting receivables quickly and stretching payables.
The negative CCC, driven by a DPO that exceeds DSO plus DIO, suggests Valvoline is effectively using supplier financing to fund its working capital needs. DSO has improved from 23 days in 2024Q2 to 17 days in 2026Q3, reflecting tighter receivables management, while DPO has remained relatively stable. This efficiency is a positive offset to the thin liquidity position, but the low current ratio of 0.70 indicates that the company relies on this working capital cycle to meet short-term obligations.
Leverage Moderates but Remains Elevated
Debt-to-equity fell from 30.68 in 2024Q2 to 4.75 in 2026Q3, per balance sheet data, while D/EBITDA improved to 8.94 from 18.08, yet interest coverage of 4.52 in 2026Q2 remains thin.
The dramatic reduction in D/E is partly due to equity growth from retained earnings, but total debt of $2.0B remains substantial relative to EBITDA. D/EBITDA of 8.94 is still high, and interest coverage of 4.52 in 2026Q2 suggests that debt service is manageable but leaves little room for earnings shocks. The improvement from 24.36 D/EBITDA in 2026Q1 is positive, but the leverage profile remains a key risk, especially given the acquisition-heavy strategy.
Thin Liquidity Buffer Persists
Valvoline's current ratio has hovered near 0.70 for ten consecutive quarters, per reported figures, with cash of $84.2M against total debt of $2.0B, indicating a tight liquidity position.
The current ratio of 0.70 and quick ratio of 0.58 suggest that Valvoline would struggle to cover short-term liabilities without relying on operating cash flow or additional borrowing. The negative CCC provides some relief, but the low cash balance relative to debt raises concerns about financial flexibility. Under a severe stress scenario, such as a sharp revenue decline, the company may face refinancing risk given its high leverage and thin liquidity.
P/E Misleads on Earnings Quality
Valvoline's P/E of 20.56 appears reasonable, but the metric is distorted by volatile net income, as evidenced by the swing from a loss in 2026Q1 to a profit in 2026Q3, per reported data.
The P/E ratio is commonly misapplied to Valvoline because net income is heavily impacted by non-recurring items, such as the goodwill write-down that reduced goodwill from $1.2B to $93.5M in 2026Q3. This makes trailing P/E unreliable as a valuation gauge. Instead, investors should use EV/EBITDA, which at 11.62 is more stable and better reflects the company's operating performance, or forward EV/EBITDA of 9.99, which accounts for expected growth. The high P/FCF of 113.17 also signals that free cash flow is temporarily depressed by heavy capex and acquisition outflows, further underscoring the need to focus on EBITDA-based multiples.