Latest Ratios: P/E Ratio 31.2x · EV/EBITDA 9.8x · ROE 9.1%. (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 | $3.5B | $2.7B | $2.1B | $2.9B | $2.5B | $2.1B | — | — | — |
| Enterprise Value | $4.4B | $3.4B | $2.9B | $3.6B | $3.2B | $2.7B | — | — | — |
| P/E Ratio → | 31.20 | 27.70 | 27.53 | 24.10 | 49.86 | — | — | — | — |
| P/S Ratio | 1.68 | 1.46 | 1.08 | 1.53 | 1.69 | 1.65 | — | — | — |
| P/B Ratio | 2.75 | 2.44 | 2.14 | 3.24 | 3.44 | 3.31 | — | — | — |
| P/FCF | 12.79 | 11.07 | 13.67 | 14.78 | 34.47 | 11.42 | — | — | — |
| P/OCF | 9.61 | 8.32 | 7.52 | 10.60 | 17.21 | 7.59 | — | — | — |
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 | — | 1.87 | 1.50 | 1.90 | 2.13 | 2.12 | — | — | — |
| EV / EBITDA | 9.84 | 8.77 | 7.24 | 9.02 | 9.95 | 45.54 | — | — | — |
| EV / EBIT | 24.62 | 21.96 | 17.13 | 18.12 | 19.43 | — | — | — | — |
| EV / FCF | — | 14.19 | 18.99 | 18.33 | 43.50 | 14.67 | — | — | — |
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 | 55.6% | 55.6% | 66.6% | 64.3% | 62.2% | 62.0% | 52.7% | 58.8% | 61.4% |
| Operating Margin | 8.5% | 8.5% | 8.6% | 10.9% | 9.9% | -7.3% | -2.2% | 6.7% | 8.0% |
| Net Profit Margin | 5.1% | 5.1% | 4.0% | 6.4% | 3.4% | -10.5% | -5.0% | 1.6% | 3.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.1% | 9.1% | 8.2% | 14.9% | 7.5% | -21.1% | -7.4% | 3.0% | 5.2% |
| ROA | 3.3% | 3.3% | 2.8% | 4.7% | 2.1% | -5.6% | -2.0% | 0.8% | 1.3% |
| ROIC | 6.4% | 6.4% | 7.4% | 10.4% | 8.4% | -5.3% | -1.1% | 3.8% | 3.9% |
| ROCE | 7.7% | 7.7% | 8.9% | 12.6% | 8.9% | -5.2% | -1.2% | 4.2% | 4.4% |
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 | 0.89 | 0.89 | 1.05 | 1.11 | 1.25 | 1.66 | 1.67 | 1.58 | 1.81 |
| Debt / EBITDA | 2.49 | 2.49 | 2.57 | 2.48 | 2.86 | 17.73 | 7.50 | 4.33 | 5.13 |
| Net Debt / Equity | — | 0.69 | 0.83 | 0.78 | 0.90 | 0.94 | 1.18 | 1.29 | 1.51 |
| Net Debt / EBITDA | 1.93 | 1.93 | 2.03 | 1.74 | 2.07 | 10.09 | 5.29 | 3.54 | 4.28 |
| Debt / FCF | — | 3.13 | 5.31 | 3.54 | 9.03 | 3.25 | 23.92 | 8.20 | 8.24 |
| Interest Coverage | 3.68 | 3.68 | 4.29 | 6.51 | 10.21 | -5.97 | -0.93 | 4.69 | 4.92 |
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 | 1.59 | 1.59 | 1.41 | 1.27 | 1.48 | 1.97 | 2.31 | 2.05 | 2.12 |
| Quick Ratio | 0.91 | 0.91 | 0.80 | 0.76 | 1.01 | 1.49 | 1.71 | 1.92 | 1.64 |
| Cash Ratio | 0.39 | 0.39 | 0.35 | 0.38 | 0.66 | 1.14 | 1.25 | 0.98 | 1.18 |
| Asset Turnover | — | 0.65 | 0.69 | 0.69 | 0.62 | 0.53 | 0.42 | 0.50 | 0.42 |
| Inventory Turnover | 1.61 | 1.61 | 1.25 | 1.30 | 1.37 | 1.45 | 1.50 | 4.95 | 0.96 |
| Days Sales Outstanding | — | 51.61 | 52.79 | 46.08 | 43.33 | 45.29 | 49.67 | 49.23 | 49.91 |
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 | 1.0% | 1.1% | 1.4% | 0.9% | 0.9% | 0.0% | — | — | — |
| Payout Ratio | 30.9% | 30.9% | 39.3% | 20.6% | 42.4% | — | — | 58.5% | 34.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.2% | 3.6% | 3.6% | 4.1% | 2.0% | — | — | — | — |
| FCF Yield | 7.8% | 9.0% | 7.3% | 6.8% | 2.9% | 8.8% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 21.3% | — | — | — |
| Total Shareholder Yield | 1.0% | 1.1% | 1.4% | 0.9% | 0.9% | 21.3% | — | — | — |
| Shares Outstanding | — | $261M | $254M | $252M | $241M | $203M | $222M | $242M | $242M |
China luxury market exposure
Based on current market data, ZGN trades at a 31.20x TTM P/E ratio, which appears to price in a recovery trajectory that contrasts with the recent 5.41% revenue contraction observed in the company's latest reported financial results.
The current valuation multiple suggests that investors are assigning a premium for the brand's vertical integration and luxury positioning, yet this multiple remains sensitive to the ongoing integration of the Tom Ford license. When compared to peers like Ralph Lauren, the valuation appears to reflect a growth-oriented expectation that may be difficult to sustain if the current macro-driven slowdown in the Chinese luxury market persists.
As reported in recent financial statements, ZGN's ROIC has trended toward 3.8% in 2025Q4, a figure that highlights the significant capital intensity required to maintain proprietary textile mills while simultaneously scaling the direct-to-consumer retail network.
The compression in return on invested capital suggests that the company's recent M&A activity and retail expansion are currently diluting the efficiency of its capital base. Investors should monitor whether the company can improve these returns as the Tom Ford Fashion business matures and the benefits of the brand elevation strategy begin to materialize in the bottom line.
According to quarterly filings, ZGN's cash conversion cycle has expanded to 67 days as of 2025Q4, driven largely by an inventory turnover profile that reflects the complexities of managing both high-end textile production and a global retail footprint.
The increase in days inventory outstanding suggests that the company is holding more stock to support its multi-brand strategy, which may increase the risk of future markdowns. This working capital intensity warrants further investigation, as it directly impacts the company's ability to convert its gross margin into free cash flow during periods of softening consumer demand.
Based on the latest balance sheet data, ZGN maintains a debt-to-equity ratio of 0.89, indicating a disciplined approach to capital structure that provides a necessary buffer against the volatility inherent in the luxury apparel sector.
The company's ability to maintain stable debt levels while navigating a complex brand transition suggests a prudent management of financial risk. While the interest coverage ratio of 3.76 remains adequate, the company's reliance on external financing for its retail estate expansion means that any sustained increase in interest rates could pressure future earnings growth.
The market frequently misapplies the net margin ratio to ZGN, failing to account for the significant non-recurring integration costs and the structural impact of the company's upstream textile manufacturing division on reported profitability.
Focusing solely on the 5.14% net margin obscures the underlying earning power of the core Zegna brand, which is currently masked by the heavy investment phase of the Tom Ford acquisition. Analysts should instead prioritize operating margin and free cash flow conversion to better assess the company's true operational health and its ability to generate sustainable returns.
Includes 30+ ratios · 8 years · Updated daily
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Quick answers to the most common questions about buying ZGN stock.
Ermenegildo Zegna N.V.'s current P/E ratio is 31.2x. The historical average is 32.3x. This places it at the 75th percentile of its historical range.
Ermenegildo Zegna N.V.'s current EV/EBITDA is 9.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.1x.
Ermenegildo Zegna N.V.'s return on equity (ROE) is 9.1%. The historical average is 2.4%.
Based on historical data, Ermenegildo Zegna N.V. is trading at a P/E of 31.2x. This is at the 75th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Ermenegildo Zegna N.V.'s current dividend yield is 0.97% with a payout ratio of 30.9%.
Ermenegildo Zegna N.V. has 55.6% gross margin and 8.5% operating margin.
Ermenegildo Zegna N.V.'s Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.