Latest Ratios: P/E Ratio -22.0x · EV/EBITDA 15.1x · ROE -8.5%. (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 | $1.0B | $693M | $657M | $576M | $1.2B | $1.1B | $713M | $473M | $514M | $942M | $1.1B |
| Enterprise Value | $1.2B | $842M | $797M | $723M | $1.2B | $1.1B | $658M | $424M | $434M | $881M | $1.0B |
| P/E Ratio → | -22.00 | — | — | — | — | — | 300.20 | — | — | 39.49 | 31.04 |
| P/S Ratio | 0.93 | 0.64 | 0.71 | 0.50 | 1.14 | 1.97 | 1.41 | 0.89 | 0.97 | 1.41 | 1.72 |
| P/B Ratio | 1.93 | 1.33 | 1.20 | 0.55 | 0.90 | 3.11 | 1.91 | 1.24 | 1.15 | 1.89 | 2.28 |
| P/FCF | 10.32 | 7.07 | 17.12 | — | — | — | — | — | 10.61 | — | 53.21 |
| P/OCF | 7.80 | 5.34 | 6.35 | — | — | 368.73 | — | — | 9.09 | — | 26.05 |
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 | — | 0.78 | 0.86 | 0.63 | 1.18 | 1.88 | 1.30 | 0.80 | 0.82 | 1.32 | 1.63 |
| EV / EBITDA | 15.09 | 10.95 | — | — | — | 762.86 | 96.06 | — | — | 16.61 | 21.18 |
| EV / EBIT | — | — | — | — | — | — | — | — | — | 19.48 | 21.93 |
| EV / FCF | — | 8.59 | 20.75 | — | — | — | — | — | 8.96 | — | 50.63 |
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 | 38.3% | 38.3% | 35.1% | 28.8% | 31.9% | 38.8% | 43.0% | 41.3% | 38.5% | 45.6% | 45.8% |
| Operating Margin | -1.4% | -1.4% | -46.3% | -19.5% | -7.1% | -2.6% | -1.9% | -7.5% | -8.6% | 5.6% | 5.5% |
| Net Profit Margin | -4.2% | -4.2% | -49.8% | -23.3% | -0.2% | -1.5% | 0.5% | -10.0% | -3.7% | 3.6% | 5.5% |
| 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% | -57.5% | -22.8% | -0.2% | -2.4% | 0.6% | -12.8% | -4.1% | 4.9% | 7.3% |
| ROA | -3.8% | -3.8% | -32.3% | -14.8% | -0.2% | -1.6% | 0.4% | -9.0% | -3.0% | 3.6% | 5.4% |
| ROIC | -1.7% | -1.7% | -34.0% | -13.2% | -6.7% | -3.5% | -2.3% | -8.6% | -8.5% | 6.5% | 6.1% |
| ROCE | -1.8% | -1.8% | -37.5% | -15.3% | -7.6% | -3.5% | -2.3% | -8.5% | -8.5% | 6.8% | 6.4% |
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 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.47 | 0.47 | 0.39 | 0.22 | 0.11 | 0.01 | 0.01 | 0.06 | 0.06 | 0.05 | 0.06 |
| Debt / EBITDA | 3.18 | 3.18 | — | — | — | 2.36 | 0.78 | — | — | 0.48 | 0.55 |
| Net Debt / Equity | — | 0.29 | 0.25 | 0.14 | 0.03 | -0.15 | -0.15 | -0.13 | -0.18 | -0.12 | -0.11 |
| Net Debt / EBITDA | 1.94 | 1.94 | — | — | — | -38.54 | -8.00 | — | — | -1.15 | -1.08 |
| Debt / FCF | — | 1.52 | 3.63 | — | — | — | — | — | -1.65 | — | -2.58 |
| Interest Coverage | -0.62 | -0.62 | -19.08 | -13.33 | -19.65 | -184.44 | -1248.20 | -47.49 | -61.61 | 81.37 | 82.98 |
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 | 1.76 | 1.76 | 2.04 | 2.62 | 2.06 | 2.42 | 3.36 | 2.84 | 3.01 | 3.87 | 2.79 |
| Quick Ratio | 1.16 | 1.16 | 1.15 | 1.30 | 1.06 | 1.52 | 2.03 | 1.97 | 2.17 | 2.72 | 1.96 |
| Cash Ratio | 0.36 | 0.36 | 0.26 | 0.32 | 0.25 | 0.37 | 0.67 | 0.95 | 0.92 | 0.96 | 0.97 |
| Asset Turnover | — | 0.90 | 0.79 | 0.69 | 0.53 | 0.99 | 0.96 | 0.97 | 0.84 | 1.00 | 0.95 |
| Inventory Turnover | 3.10 | 3.10 | 2.29 | 2.27 | 1.63 | 2.46 | 2.30 | 3.16 | 3.26 | 2.96 | 3.29 |
| Days Sales Outstanding | — | 70.95 | 76.45 | 73.18 | 111.14 | 110.19 | 86.73 | 73.75 | 93.85 | 93.49 | 62.04 |
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 | — | — | — | 3.7% | 2.0% | 1.6% | 2.4% | 3.6% | 3.4% | 1.8% | 1.6% |
| Payout Ratio | — | — | — | — | — | — | 728.9% | — | — | 72.9% | 49.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | 0.3% | — | — | 2.5% | 3.2% |
| FCF Yield | 9.7% | 14.1% | 5.8% | — | — | — | — | — | 9.4% | — | 1.9% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 3.0% | 1.8% | 2.4% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 3.7% | 2.0% | 1.6% | 2.6% | 3.7% | 6.4% | 3.7% | 4.0% |
| Shares Outstanding | — | $80M | $79M | $78M | $62M | $49M | $48M | $48M | $48M | $49M | $49M |
Integration and cyclical demand
According to current market data, ADTRAN trades at a P/S ratio of 1.01, which appears to discount the company significantly compared to software-centric peers like Calix, suggesting that investors remain skeptical of the firm's ability to successfully monetize its integrated optical transport and access hardware portfolio.
The negative TTM P/E ratio highlights the earnings volatility stemming from post-merger integration costs, making traditional earnings-based valuation metrics currently unreliable. Investors should monitor whether the forward P/E of 25.69 reflects a realistic recovery path or if the market is pricing in a permanent impairment of the company's competitive positioning in the fiber infrastructure space.
Based on reported financial figures, ADTRAN's ROIC has struggled to maintain positive territory, hovering at 0.7% in 2026Q1, which indicates that the company is currently failing to generate returns on invested capital that exceed its cost of capital following the significant ADVA acquisition.
The persistent decay in ROIC over the last ten quarters suggests that the integration of the two legacy product portfolios has not yet yielded the expected operational synergies. This trend warrants further investigation into whether the company's capital-intensive manufacturing model can ever achieve the returns necessary to justify its current asset base.
As reported in recent financial statements, ADTRAN's cash conversion cycle remains elevated at 89 days in 2026Q1, reflecting structural inefficiencies in inventory management and a reliance on extended payment terms that continue to tie up liquidity in a hardware-heavy, project-based revenue environment.
The high days inventory outstanding (DIO) of 109 days suggests that the company is still navigating the challenges of inventory digestion following the post-pandemic destocking phase. Improvements in asset turnover, which remains low at 0.24, are essential for the company to demonstrate that it can optimize its supply chain and improve cash flow velocity.
Based on quarterly filings, ADTRAN's debt-to-EBITDA ratio has shown extreme volatility, reaching 34.25 in 2026Q1, which indicates that the company's ability to service its debt obligations is currently highly sensitive to minor fluctuations in operating performance and the timing of large-scale infrastructure project revenue.
While the debt-to-equity ratio of 0.43 appears manageable in isolation, the erosion of the equity base makes the company's leverage profile appear more vulnerable than it might otherwise be. Investors should monitor the interest coverage ratio closely, as any further operational setbacks could quickly compromise the company's financial flexibility.
The P/E ratio is frequently misapplied to ADTRAN, as it fails to account for the significant non-cash amortization of intangible assets and one-time integration costs that currently distort the company's GAAP earnings, thereby obscuring the underlying cash-generating potential of the combined ADTRAN-ADVA entity.
Analysts should instead focus on EV/Sales or adjusted EBITDA metrics to better gauge the company's operational health, as these ratios are less sensitive to the accounting noise inherent in post-merger periods. Relying on P/E in this context may lead to an incorrect assessment of the company's valuation relative to its true fundamental earning power.
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Quick answers to the most common questions about buying ADTN stock.
ADTRAN Holdings, Inc.'s current P/E ratio is -22.0x. The historical average is 32.8x.
ADTRAN Holdings, Inc.'s current EV/EBITDA is 15.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 22.7x.
ADTRAN Holdings, Inc.'s return on equity (ROE) is -8.5%. The historical average is 7.2%.
Based on historical data, ADTRAN Holdings, Inc. is trading at a P/E of -22.0x. Compare with industry peers and growth rates for a complete picture.
ADTRAN Holdings, Inc. has 38.3% gross margin and -1.4% operating margin.
ADTRAN Holdings, Inc.'s Debt/EBITDA ratio is 3.2x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.