Latest Ratios: P/E Ratio 28.7x · EV/EBITDA 13.1x · ROE 25.3%. (2002–2025 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 | $3.1B | $1.9B | $1.6B | $1.4B | $1.0B | $524M | $464M | $240M | $238M | $318M | $587M |
| Enterprise Value | $3.5B | $2.3B | $2.0B | $1.9B | $1.6B | $1.2B | $1.2B | $520M | $606M | $760M | $1.1B |
| P/E Ratio → | 28.68 | 17.42 | 24.53 | 20.65 | — | — | 3.16 | — | — | — | 10.44 |
| P/S Ratio | 7.09 | 4.39 | 4.20 | 3.60 | 2.32 | 0.60 | 0.52 | 0.86 | 0.59 | 0.85 | 2.26 |
| P/B Ratio | 6.67 | 4.05 | 3.99 | 3.92 | 3.38 | 0.39 | 0.32 | 0.44 | 0.38 | 0.73 | 1.16 |
| P/FCF | 21.05 | 13.05 | 8.31 | 9.55 | 5.99 | 2.37 | 1.26 | 1.54 | 1.86 | 2.21 | 4.44 |
| P/OCF | 19.88 | 12.33 | 7.44 | 9.15 | 5.57 | 2.23 | 1.08 | 1.42 | 1.76 | 2.16 | 4.03 |
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 | — | 5.21 | 5.28 | 4.99 | 3.74 | 1.39 | 1.36 | 1.86 | 1.49 | 2.03 | 4.25 |
| EV / EBITDA | 13.10 | 8.64 | 9.24 | 8.05 | 5.95 | 4.81 | 3.26 | 12.06 | 3.67 | 6.12 | 6.56 |
| EV / EBIT | 16.77 | 12.75 | 14.86 | 13.61 | 10.58 | 144.12 | 7.00 | — | 18.61 | — | 11.86 |
| EV / FCF | — | 15.48 | 10.45 | 13.25 | 9.65 | 5.51 | 3.30 | 3.33 | 4.75 | 5.28 | 8.35 |
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 | 87.2% | 87.2% | 80.6% | 75.5% | 74.0% | 59.7% | 71.6% | 58.9% | 70.0% | 66.4% | 86.6% |
| Operating Margin | 47.2% | 47.2% | 37.8% | 37.4% | 36.8% | 2.9% | 22.2% | -22.7% | 12.3% | 1.3% | 51.7% |
| Net Profit Margin | 25.1% | 25.1% | 17.2% | 17.3% | -67.4% | -6.3% | 16.5% | -22.3% | -0.1% | -15.1% | 21.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 25.3% | 25.3% | 17.2% | 20.5% | -36.0% | -4.0% | 14.7% | -10.8% | -0.1% | -12.0% | 11.0% |
| ROA | 10.4% | 10.4% | 5.9% | 5.8% | -16.1% | -2.1% | 7.8% | -5.5% | -0.0% | -4.9% | 6.5% |
| ROIC | 19.0% | 19.0% | 12.5% | 12.0% | 8.2% | 0.9% | 9.8% | -5.3% | 4.0% | 0.4% | 13.3% |
| ROCE | 21.1% | 21.1% | 14.0% | 14.2% | 9.7% | 1.1% | 11.4% | -5.8% | 4.6% | 0.5% | 16.2% |
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 | 0.91 | 0.91 | 1.22 | 1.67 | 2.44 | 0.58 | 0.64 | 0.65 | 0.78 | 1.33 | 1.15 |
| Debt / EBITDA | 1.63 | 1.63 | 2.26 | 2.47 | 2.67 | 3.06 | 2.47 | 8.21 | 2.92 | 4.67 | 3.46 |
| Net Debt / Equity | — | 0.75 | 1.03 | 1.52 | 2.06 | 0.52 | 0.52 | 0.51 | 0.60 | 1.01 | 1.02 |
| Net Debt / EBITDA | 1.36 | 1.36 | 1.89 | 2.25 | 2.25 | 2.74 | 2.02 | 6.48 | 2.23 | 3.56 | 3.07 |
| Debt / FCF | — | 2.43 | 2.14 | 3.70 | 3.65 | 3.14 | 2.04 | 1.79 | 2.89 | 3.07 | 3.91 |
| Interest Coverage | 4.49 | 4.49 | 2.55 | 2.28 | 3.42 | 0.22 | 4.59 | -2.55 | 1.27 | -1.06 | 38.66 |
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 | 3.81 | 3.81 | 3.53 | 2.02 | 1.55 | 2.74 | 2.43 | 5.84 | 7.34 | 2.54 | 3.92 |
| Quick Ratio | 3.81 | 3.81 | 3.53 | 2.02 | 1.55 | 2.71 | 2.39 | 5.84 | 7.06 | 2.54 | 3.92 |
| Cash Ratio | 1.71 | 1.71 | 1.51 | 0.82 | 0.69 | 0.74 | 1.14 | 2.52 | 2.85 | 2.07 | 2.22 |
| Asset Turnover | — | 0.43 | 0.34 | 0.35 | 0.36 | 0.36 | 0.33 | 0.27 | 0.33 | 0.34 | 0.22 |
| Inventory Turnover | — | — | — | — | — | 69.39 | 25.78 | 1151.27 | 8.08 | — | — |
| Days Sales Outstanding | — | 130.45 | 134.83 | 107.56 | 109.96 | 37.80 | 101.64 | 190.28 | 202.87 | 27.22 | 95.32 |
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 | 0.7% | 1.1% | 1.4% | 1.5% | 20.0% | 4.0% | 6.6% | 16.4% | 16.5% | 12.4% | 6.7% |
| Payout Ratio | 19.6% | 19.6% | 33.7% | 31.7% | — | — | 21.0% | — | — | — | 69.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.5% | 5.7% | 4.1% | 4.8% | — | — | 31.6% | — | — | — | 9.6% |
| FCF Yield | 4.8% | 7.7% | 12.0% | 10.5% | 16.7% | 42.1% | 79.6% | 64.9% | 53.7% | 45.2% | 22.5% |
| Buyback Yield | 1.4% | 2.2% | 2.0% | 0.8% | 3.3% | 19.2% | 17.4% | 1.9% | 18.8% | 6.1% | 12.0% |
| Total Shareholder Yield | 2.1% | 3.4% | 3.4% | 2.3% | 23.2% | 23.3% | 24.0% | 18.3% | 35.3% | 18.5% | 18.7% |
| Shares Outstanding | — | $113M | $113M | $113M | $108M | $105M | $84M | $49M | $49M | $49M | $50M |
Lumpy litigation revenue cycles
Based on reported figures, Adeia's forward P/E of 21.70 suggests that investors are discounting the company's earnings potential, likely due to the inherent volatility of its intellectual property licensing model compared to more predictable software-as-a-service peers within the broader technology sector.
The current valuation appears to reflect a cautious market stance, potentially mispricing the durability of the company's semiconductor IP portfolio. Investors should monitor whether the forward multiple expands as the market gains confidence in the recurring nature of the media licensing segment.
According to recent financial statements, Adeia's ROIC has fluctuated significantly, reaching a peak of 10.6% in 2025Q4 before retreating to 4.8% in 2026Q1, which highlights the difficulty in maintaining consistent capital returns given the lumpy nature of its core licensing revenue streams.
The volatility in ROIC suggests that the company's ability to compound capital is heavily dependent on the timing of major contract renewals and litigation outcomes. This trend warrants further investigation into whether management can optimize its R&D spend to generate more stable, long-term returns on invested capital.
As reported in financial statements, Adeia's DSO has shown extreme variance, ranging from 77 days in 2025Q4 to 154 days in 2026Q1, which suggests that the company's cash conversion efficiency is highly sensitive to the timing of large, non-recurring payments from its major licensing partners.
The erratic nature of these collection cycles implies that the company's working capital management is less about operational efficiency and more about the negotiation timelines of its legal and licensing agreements. Investors should view these fluctuations as a structural feature of the business model rather than a sign of operational weakness.
Based on Adeia's reported figures, the company maintains a current ratio of 3.44 as of 2026Q1, providing a substantial liquidity cushion that appears more than adequate to navigate the unpredictable cash flow gaps inherent in its intellectual property licensing business model.
This strong liquidity position suggests that the company is well-prepared to withstand periods of litigation-related revenue delays without needing to access external financing. The lack of inventory dependence further reinforces the stability of this liquidity profile, as the firm is not exposed to the risks of physical supply chain disruptions.
As indicated by the company's financial history, the P/E ratio is frequently misapplied to Adeia, as it fails to account for the significant impact of one-time litigation settlements and catch-up payments that distort GAAP earnings and obscure the underlying run-rate of recurring royalty income.
Analysts should instead focus on adjusted cash flow metrics or normalized earnings that strip out the volatility of non-recurring legal windfalls. Relying solely on standard P/E multiples may lead to an inaccurate assessment of the company's true earning power and long-term value creation potential.
Includes 30+ ratios · 24 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying ADEA stock.
Adeia Inc.'s current P/E ratio is 28.7x. The historical average is 12.3x. This places it at the 93th percentile of its historical range.
Adeia Inc.'s current EV/EBITDA is 13.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 5.0x.
Adeia Inc.'s return on equity (ROE) is 25.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 9.7%.
Based on historical data, Adeia Inc. is trading at a P/E of 28.7x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Adeia Inc.'s current dividend yield is 0.68% with a payout ratio of 19.6%.
Adeia Inc. has 87.2% gross margin and 47.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Adeia Inc.'s Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.