Latest Ratios: P/E Ratio 27.7x · EV/EBITDA 14.4x · ROE 8.5%. (2009–2025 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 | $25.4B | $33.2B | $28.3B | $25.0B | $20.0B | $21.8B | $18.4B | $14.3B | $12.1B | $12.3B | $8.9B |
| Enterprise Value | $26.0B | $33.8B | $29.3B | $26.3B | $21.0B | $22.9B | $19.7B | $15.9B | $14.1B | $14.1B | $11.0B |
| P/E Ratio → | 27.71 | 34.74 | 31.79 | 40.99 | 56.41 | 51.03 | 72.71 | 35.65 | 22.02 | 37.27 | 34.15 |
| P/S Ratio | 2.81 | 3.68 | 3.30 | 3.39 | 3.62 | 4.19 | 3.78 | 2.72 | 2.32 | 2.62 | 2.36 |
| P/B Ratio | 2.26 | 2.83 | 2.60 | 2.45 | 5.71 | 6.75 | 6.19 | 4.81 | 4.34 | 4.90 | 4.04 |
| P/FCF | 27.87 | 36.51 | 29.99 | 44.08 | 51.57 | 65.97 | 28.76 | 23.29 | 34.62 | 23.91 | 23.90 |
| P/OCF | 20.44 | 26.78 | 22.37 | 29.81 | 33.58 | 40.46 | 22.37 | 17.02 | 20.62 | 17.98 | 17.93 |
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 | — | 3.74 | 3.42 | 3.57 | 3.81 | 4.41 | 4.04 | 3.03 | 2.71 | 3.00 | 2.91 |
| EV / EBITDA | 14.43 | 18.81 | 18.62 | 24.19 | 24.49 | 27.62 | 31.89 | 21.44 | 15.40 | 17.97 | 19.70 |
| EV / EBIT | 21.22 | 27.94 | 25.87 | 38.48 | 42.89 | 39.06 | 54.44 | 32.98 | 20.52 | 24.35 | 22.58 |
| EV / FCF | — | 37.16 | 31.06 | 46.51 | 54.16 | 69.48 | 30.74 | 25.99 | 40.39 | 27.37 | 29.42 |
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% | 37.5% | 36.9% | 37.7% | 38.0% | 37.5% | 39.0% | 38.9% | 39.3% | 38.7% |
| Operating Margin | 13.5% | 13.5% | 11.8% | 8.9% | 11.3% | 11.3% | 7.5% | 9.3% | 12.6% | 11.7% | 10.8% |
| Net Profit Margin | 10.6% | 10.6% | 10.4% | 8.3% | 6.4% | 8.2% | 5.2% | 7.6% | 10.5% | 7.0% | 6.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.5% | 8.5% | 8.5% | 8.9% | 10.6% | 13.8% | 8.5% | 14.0% | 20.7% | 14.0% | 12.1% |
| ROA | 5.6% | 5.6% | 5.5% | 5.1% | 4.4% | 5.0% | 3.1% | 5.4% | 7.8% | 5.0% | 4.7% |
| ROIC | 7.6% | 7.6% | 6.5% | 6.1% | 10.5% | 10.2% | 6.2% | 7.7% | 10.8% | 9.7% | 8.8% |
| ROCE | 8.5% | 8.5% | 7.2% | 6.4% | 9.4% | 8.6% | 5.6% | 8.1% | 11.3% | 10.0% | 9.0% |
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 | 0.18 | 0.18 | 0.20 | 0.23 | 0.56 | 0.78 | 1.06 | 0.80 | 0.83 | 0.87 | 1.07 |
| Debt / EBITDA | 1.15 | 1.15 | 1.35 | 2.20 | 2.27 | 3.02 | 5.09 | 3.20 | 2.52 | 2.80 | 4.25 |
| Net Debt / Equity | — | 0.05 | 0.09 | 0.13 | 0.29 | 0.36 | 0.43 | 0.56 | 0.72 | 0.71 | 0.93 |
| Net Debt / EBITDA | 0.32 | 0.32 | 0.64 | 1.26 | 1.17 | 1.40 | 2.06 | 2.22 | 2.20 | 2.27 | 3.70 |
| Debt / FCF | — | 0.64 | 1.07 | 2.42 | 2.59 | 3.52 | 1.98 | 2.70 | 5.77 | 3.46 | 5.52 |
| Interest Coverage | 41.72 | 41.72 | 25.70 | 13.96 | 9.80 | 7.72 | 4.70 | 7.21 | 8.38 | 7.07 | 6.94 |
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 | 1.63 | 1.63 | 1.75 | 1.76 | 1.89 | 2.27 | 1.80 | 1.63 | 1.51 | 1.88 | 1.49 |
| Quick Ratio | 1.28 | 1.28 | 1.33 | 1.30 | 1.39 | 1.77 | 1.52 | 1.27 | 1.08 | 1.41 | 1.06 |
| Cash Ratio | 0.52 | 0.52 | 0.48 | 0.46 | 0.59 | 0.97 | 0.96 | 0.48 | 0.21 | 0.38 | 0.25 |
| Asset Turnover | — | 0.51 | 0.52 | 0.46 | 0.69 | 0.63 | 0.56 | 0.68 | 0.72 | 0.69 | 0.58 |
| Inventory Turnover | 5.66 | 5.66 | 5.37 | 4.56 | 4.30 | 4.60 | 5.46 | 5.94 | 5.35 | 5.45 | 4.43 |
| Days Sales Outstanding | — | 71.06 | 71.11 | 80.15 | 72.44 | 66.96 | 69.09 | 72.04 | 72.27 | 74.13 | 81.60 |
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 | 1.5% | 1.2% | 1.2% | 1.2% | 1.1% | 0.9% | 1.0% | 1.2% | 1.3% | 1.1% | 1.3% |
| Payout Ratio | 40.9% | 40.9% | 39.3% | 49.1% | 61.1% | 47.5% | 74.0% | 43.4% | 27.7% | 39.3% | 43.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.6% | 2.9% | 3.1% | 2.4% | 1.8% | 2.0% | 1.4% | 2.8% | 4.5% | 2.7% | 2.9% |
| FCF Yield | 3.6% | 2.7% | 3.3% | 2.3% | 1.9% | 1.5% | 3.5% | 4.3% | 2.9% | 4.2% | 4.2% |
| Buyback Yield | 0.1% | 0.0% | 0.1% | 0.1% | 0.3% | 0.3% | 0.3% | 0.3% | 0.5% | 0.2% | 0.0% |
| Total Shareholder Yield | 1.5% | 1.2% | 1.3% | 1.3% | 1.3% | 1.2% | 1.4% | 1.5% | 1.7% | 1.3% | 1.3% |
| Shares Outstanding | — | $244M | $244M | $218M | $181M | $182M | $181M | $181M | $181M | $181M | $180M |
Includes 30+ ratios · 17 years · Updated daily
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Quick answers to the most common questions about buying XYL stock.
Xylem Inc.'s current P/E ratio is 27.7x. The historical average is 34.6x. This places it at the 33th percentile of its historical range.
Xylem Inc.'s current EV/EBITDA is 14.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.6x.
Xylem Inc.'s return on equity (ROE) is 8.5%. The historical average is 12.9%.
Based on historical data, Xylem Inc. is trading at a P/E of 27.7x. This is at the 33th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Xylem Inc.'s current dividend yield is 1.47% with a payout ratio of 40.9%.
Xylem Inc. has 38.5% gross margin and 13.5% operating margin. Operating margin between 10-20% is typical for established companies.
Xylem Inc.'s Debt/EBITDA ratio is 1.1x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
International demand softness and integration risks
Metrics are mathematically derived from official filings.
Margin Expansion Signals Mix Shift
Gross margin improved to 41.2% in 2026Q2 from 37.0% in 2024Q1, per reported figures, indicating a favorable mix shift toward higher-margin services and digital solutions.
The 410 basis point gross margin expansion over ten quarters suggests that the integration of Evoqua and Sensus is gradually shifting revenue toward recurring, higher-value offerings. Operating margin reached 16.7% in 2026Q2, up from 10.3% in 2024Q1, reflecting operating leverage as SG&A grew slower than revenue. However, net margin of 11.3% in 2026Q2 remains below the 14.5% peak in 2024Q4, likely due to acquisition-related amortization and one-time costs, warranting a focus on adjusted metrics.
ROIC Recovery Still Below Pre-Acquisition Peaks
ROIC improved to 2.4% in 2026Q2 from 1.4% in 2024Q1, as reported, but remains modest relative to peers like Pentair's 12.0%, suggesting integration drag.
The sequential improvement in ROIC from 1.5% in 2026Q1 to 2.4% in 2026Q2 indicates that the Evoqua acquisition is beginning to contribute to returns, but the absolute level remains low. This is partly due to the large goodwill base of $8.3B, which inflates invested capital. ROE of 2.4% in 2026Q2 is similarly depressed, though it has doubled from 1.5% in 2024Q1, suggesting a slow but steady recovery. Investors should monitor whether ROIC can approach the mid-teens as synergies materialize, but the current trajectory suggests a multi-year path.
Working Capital Cycle Lengthens Slightly
Cash conversion cycle extended to 72 days in 2026Q2 from 78 days in 2024Q1, per financial statements, driven by a rise in DSO to 72 days.
The CCC has remained in a narrow band of 70-84 days over the past ten quarters, indicating stable working capital management. DSO increased from 69 days in 2024Q4 to 72 days in 2026Q2, which may reflect slower collections from municipal customers or project timing. DIO and DPO have been relatively stable, suggesting that inventory and payables are not major sources of variability. The slight lengthening of the cycle is not alarming but warrants monitoring, especially if it persists alongside softer international demand.
Leverage Creeps Up but Coverage Remains Strong
Debt-to-equity rose to 0.29 in 2026Q2 from 0.18 in 2026Q1, per SEC filings, while interest coverage of 53x indicates ample debt service capacity.
The sequential increase in leverage appears tied to the $1.0B debt issuance in 2026Q2, likely to fund buybacks and acquisitions. Despite the rise, D/EBITDA of 5.76x is elevated compared to the 4.16x in 2025Q4, but interest coverage of 53x remains robust, suggesting that the company can comfortably service its debt. The balance sheet remains healthy, but investors should monitor whether leverage continues to climb and whether the increased debt is used for value-accretive investments or merely financial engineering.
Liquidity Buffer Adequate but Reliance on Cash Flow
Current ratio improved to 1.61 in 2026Q2 from 1.46 in 2026Q1, as reported, with cash of $1.3B providing a cushion against short-term obligations.
The current ratio has remained above 1.4 over the past ten quarters, indicating a stable liquidity position. The quick ratio of 1.24 in 2026Q2 suggests that inventory is not a significant liquidity constraint. However, the company's FCF margin of 8.6% in 2026Q2 is modest, and the aggressive buyback of $680M in the same quarter may strain liquidity if cash generation slows. The $1.3B cash balance provides a buffer, but investors should watch whether working capital swings, particularly in Q1, could pressure liquidity in future periods.
Misapplied P/E Overstates Earnings Quality
The trailing P/E of 28.93 appears elevated, but GAAP earnings are depressed by acquisition amortization, making EV/EBITDA of 15.05 a more accurate valuation gauge.
The market often uses P/E to value Xylem, but the significant amortization of intangibles from the Evoqua and Sensus acquisitions understates GAAP earnings, inflating the P/E. EV/EBITDA of 15.05x is more comparable to peers like Pentair (12.28x) and Franklin Electric (14.03x), and the forward EV/EBITDA of 11.18x suggests the market is pricing in margin expansion. Investors should focus on EV/EBITDA and FCF yield rather than P/E to assess valuation, as the latter may mislead on earnings quality.