Latest Ratios: P/E Ratio 39.1x · EV/EBITDA 29.4x · ROE 29.3%. (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 | $31.5B | $22.7B | $22.1B | $19.5B | $20.7B | $23.1B | $15.4B | $15.9B | $14.6B | $15.6B | $10.9B |
| Enterprise Value | $32.4B | $23.6B | $23.5B | $21.6B | $21.9B | $24.2B | $16.5B | $17.4B | $15.0B | $16.9B | $12.3B |
| P/E Ratio → | 39.09 | 35.30 | 34.64 | 30.37 | 29.21 | 33.36 | 29.60 | 26.89 | 24.66 | 772.76 | 20.97 |
| P/S Ratio | 9.94 | 7.16 | 7.47 | 6.60 | 6.95 | 8.30 | 6.53 | 6.62 | 6.05 | 6.74 | 5.05 |
| P/B Ratio | 9.80 | 8.85 | 12.08 | 16.96 | 40.97 | 62.88 | 66.52 | — | 9.34 | 6.97 | 4.75 |
| P/FCF | 58.27 | 42.01 | 35.65 | 44.13 | 48.27 | 39.92 | 24.98 | 33.23 | 30.71 | 25.65 | 20.49 |
| P/OCF | 48.20 | 34.75 | 28.99 | 32.37 | 33.79 | 30.93 | 19.53 | 24.77 | 24.22 | 22.32 | 17.39 |
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 | — | 7.45 | 7.93 | 7.29 | 7.35 | 8.69 | 6.96 | 7.22 | 6.20 | 7.33 | 5.66 |
| EV / EBITDA | 29.43 | 21.45 | 23.05 | 21.92 | 21.77 | 25.40 | 21.35 | 21.34 | 17.68 | 22.04 | 17.00 |
| EV / EBIT | 36.23 | 29.27 | 27.79 | 25.82 | 24.64 | 28.45 | 24.94 | 23.89 | 20.52 | 24.25 | 19.01 |
| EV / FCF | — | 43.68 | 37.88 | 48.76 | 51.03 | 41.82 | 26.63 | 36.24 | 31.44 | 27.88 | 22.96 |
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 | 57.8% | 57.8% | 59.4% | 59.6% | 58.0% | 58.5% | 57.4% | 58.0% | 59.0% | 59.0% | 58.9% |
| Operating Margin | 28.2% | 28.2% | 27.9% | 27.7% | 29.4% | 29.5% | 27.3% | 29.4% | 30.6% | 28.7% | 28.8% |
| Net Profit Margin | 20.3% | 20.3% | 21.6% | 21.7% | 23.8% | 24.9% | 22.1% | 24.6% | 24.5% | 0.9% | 24.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 29.3% | 29.3% | 42.8% | 77.6% | 162.3% | 231.1% | 6575.9% | 87.7% | 31.2% | 0.9% | 23.9% |
| ROA | 13.3% | 13.3% | 13.9% | 16.2% | 22.2% | 23.3% | 19.3% | 18.8% | 13.1% | 0.4% | 11.7% |
| ROIC | 20.1% | 20.1% | 19.4% | 25.1% | 41.5% | 45.4% | 39.2% | 33.8% | 20.1% | 13.8% | 13.7% |
| ROCE | 23.5% | 23.5% | 21.7% | 25.8% | 35.6% | 36.9% | 32.3% | 27.0% | 18.5% | 14.9% | 15.9% |
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 | 0.58 | 0.58 | 0.93 | 2.12 | 3.30 | 4.36 | 6.26 | — | 0.73 | 0.89 | 0.79 |
| Debt / EBITDA | 1.36 | 1.36 | 1.67 | 2.48 | 1.66 | 1.68 | 1.88 | 2.18 | 1.35 | 2.60 | 2.53 |
| Net Debt / Equity | — | 0.35 | 0.75 | 1.78 | 2.34 | 2.99 | 4.38 | — | 0.22 | 0.61 | 0.57 |
| Net Debt / EBITDA | 0.82 | 0.82 | 1.35 | 2.08 | 1.18 | 1.15 | 1.32 | 1.77 | 0.42 | 1.76 | 1.83 |
| Debt / FCF | — | 1.67 | 2.22 | 4.63 | 2.76 | 1.90 | 1.64 | 3.00 | 0.74 | 2.23 | 2.47 |
| Interest Coverage | 11.58 | 11.58 | 9.42 | 8.45 | 18.17 | 18.94 | 13.45 | 14.93 | 15.02 | 12.28 | 14.36 |
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 | 1.73 | 1.73 | 2.11 | 2.22 | 2.24 | 2.39 | 1.74 | 2.22 | 5.93 | 7.04 | 6.99 |
| Quick Ratio | 1.27 | 1.27 | 1.51 | 1.57 | 1.66 | 1.87 | 1.36 | 1.68 | 5.28 | 6.60 | 6.48 |
| Cash Ratio | 0.47 | 0.47 | 0.41 | 0.50 | 0.61 | 0.84 | 0.55 | 0.57 | 3.87 | 5.60 | 5.41 |
| Asset Turnover | — | 0.62 | 0.65 | 0.64 | 0.91 | 0.90 | 0.83 | 0.94 | 0.65 | 0.43 | 0.46 |
| Inventory Turnover | 2.34 | 2.34 | 2.51 | 2.32 | 2.74 | 3.25 | 3.31 | 3.15 | 3.40 | 3.50 | 3.39 |
| Days Sales Outstanding | — | 95.58 | 90.48 | 86.69 | 88.78 | 80.27 | 88.47 | 89.14 | 85.72 | 84.38 | 82.41 |
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 | 2.6% | 2.8% | 2.9% | 3.3% | 3.4% | 3.0% | 3.4% | 3.7% | 4.1% | 0.1% | 4.8% |
| FCF Yield | 1.7% | 2.4% | 2.8% | 2.3% | 2.1% | 2.5% | 4.0% | 3.0% | 3.3% | 3.9% | 4.9% |
| Buyback Yield | 0.0% | 0.1% | 0.1% | 0.4% | 3.0% | 2.8% | 1.3% | 15.5% | 9.0% | 2.1% | 3.0% |
| Total Shareholder Yield | 0.0% | 0.1% | 0.1% | 0.4% | 3.0% | 2.8% | 1.3% | 15.5% | 9.0% | 2.1% | 3.0% |
| Shares Outstanding | — | $60M | $60M | $59M | $60M | $62M | $62M | $68M | $78M | $81M | $81M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying WAT stock.
Waters Corporation's current P/E ratio is 39.1x. The historical average is 27.8x. This places it at the 93th percentile of its historical range.
Waters Corporation's current EV/EBITDA is 29.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.1x.
Waters Corporation's return on equity (ROE) is 29.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 47.8%.
Based on historical data, Waters Corporation is trading at a P/E of 39.1x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Waters Corporation has 57.8% gross margin and 28.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Waters Corporation's Debt/EBITDA ratio is 1.4x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Revenue surge masking operational losses
Metrics are mathematically derived from official filings.
Margin Collapse Undermines Revenue Surge
According to the latest quarterly report, WAT's gross margin plunged from 59.8% in 2025Q4 to 44.6% in 2026Q2, while operating margin turned negative at -5.2%, indicating severe cost pressures.
The 15-point gross margin compression suggests a fundamental shift in revenue mix or cost structure, possibly tied to the 113% revenue surge. Operating margin swung from a healthy 33.3% to a loss, implying that SG&A and R&D costs have not scaled with the revenue spike. This deterioration in profitability, despite top-line growth, points to a potential one-time event or structural inefficiency that investors should monitor closely.
Return on Capital Turns Negative
As reported in financial statements, WAT's ROIC fell from 6.8% in 2025Q4 to -0.3% in 2026Q2, and ROE dropped from 9.2% to -0.9%, indicating that the company is currently destroying value.
The negative returns on capital in 2026Q2 contrast sharply with the positive, albeit modest, returns in prior quarters. This suggests that the recent asset expansion, including a surge in goodwill to $9.4B, has not yet generated commensurate earnings. The decline in ROIC is driven by both margin compression and a larger capital base, implying that the acquisition-driven growth strategy may be diluting shareholder returns in the near term.
Working Capital Cycle Lengthens
Based on reported figures, WAT's cash conversion cycle extended to 191 days in 2026Q1 from 184 days in 2024Q4, driven by rising DSO (96 days) and DIO (145 days), indicating deteriorating working capital efficiency.
The lengthening CCC suggests that WAT is taking longer to collect receivables and turn inventory, which may be a consequence of the revenue surge or a sign of weakening demand. DSO increased from 76 days in 2024Q4 to 103 days in 2026Q2, while DIO remained elevated, indicating potential inventory buildup. This inefficiency could strain cash flows if the trend persists, especially given the volatile FCF margins observed.
Debt Service Comfort Deteriorates
Per the latest balance sheet, WAT's interest coverage turned negative at -1.56 in 2026Q2, down from 31.65 in 2025Q4, while D/EBITDA spiked to 23.66, signaling a sharp increase in leverage risk.
The dramatic rise in D/EBITDA from 4.11 to 23.66 reflects both higher debt (total debt reached $5.1B) and lower EBITDA due to operating losses. Negative interest coverage indicates that operating income is insufficient to cover interest expenses, which may raise refinancing concerns. However, the absolute debt level is still moderate relative to equity (D/E 0.33), but the trend warrants close monitoring.
Liquidity Buffer Appears Thin
According to the latest quarterly data, WAT's current ratio stood at 1.79 in 2026Q1, but cash represents only 2.2% of total assets, suggesting a tight liquidity position relative to the expanded balance sheet.
While the current ratio is above 1, the low cash proportion and high inventory levels (DIO of 145 days) imply that liquidity could be strained if the company faces a downturn or needs to service debt. The quick ratio of 1.13 in 2026Q1 indicates that excluding inventory, current assets still cover current liabilities, but the reliance on receivables and inventory for liquidity is a risk. Investors should monitor cash generation and working capital trends.
P/E Misleading Amid Earnings Volatility
The trailing P/E of 38.27 is distorted by the recent net loss in 2026Q2, making forward P/E of 28.26 more indicative, but both fail to capture the impact of the revenue surge and margin collapse.
The most commonly misapplied ratio for WAT is the P/E, as the company's earnings are highly volatile due to one-time charges and acquisition-related costs. The trailing P/E is based on depressed earnings, while the forward P/E assumes a recovery that may not materialize. A more appropriate metric is EV/EBITDA, which at 28.83 (or 14.42 forward) better reflects the company's operating performance and leverage, though it too is affected by the recent margin compression. Investors should adjust for non-recurring items and focus on normalized earnings power.