Latest Ratios: P/E Ratio 54.2x · EV/EBITDA 41.0x · ROE 206.8%. (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 | $177.4B | $230.4B | $112.6B | $14.4B | $3.9B | $32.3B | — | — | — |
| Enterprise Value | $178.4B | $231.5B | $115.4B | $17.1B | $6.1B | $34.1B | — | — | — |
| P/E Ratio → | 54.15 | 69.11 | 71.49 | 40.66 | — | 1013.55 | — | — | — |
| P/S Ratio | 32.36 | 42.04 | 23.92 | 4.40 | 1.39 | 11.57 | — | — | — |
| P/B Ratio | 84.58 | 107.94 | 103.35 | 11.50 | 2.06 | 15.11 | — | — | — |
| P/FCF | 44.99 | 58.44 | 53.78 | 13.67 | 9.49 | 89.63 | — | — | — |
| P/OCF | 44.67 | 58.03 | 53.66 | 13.61 | 9.48 | 89.29 | — | — | — |
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 | — | 42.24 | 24.51 | 5.22 | 2.17 | 12.22 | — | — | — |
| EV / EBITDA | 41.05 | 53.26 | 49.72 | 15.06 | 12.24 | 58.72 | — | — | — |
| EV / EBIT | 42.97 | 55.65 | 60.94 | 26.09 | — | 228.25 | — | — | — |
| EV / FCF | — | 58.71 | 55.13 | 16.20 | 14.83 | 94.65 | — | — | — |
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 | 87.9% | 87.9% | 75.2% | 67.7% | 55.4% | 64.6% | 61.7% | 75.7% | 88.9% |
| Operating Margin | 75.8% | 75.8% | 39.8% | 19.7% | -1.7% | 5.4% | -4.3% | 19.6% | 50.2% |
| Net Profit Margin | 60.8% | 60.8% | 33.5% | 10.9% | -6.8% | 1.3% | -8.6% | 12.0% | -53.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 206.8% | 206.8% | 134.7% | 22.6% | -9.5% | 3.6% | — | — | — |
| ROA | 50.8% | 50.8% | 28.1% | 6.4% | -3.2% | 0.9% | -7.5% | 13.7% | -48.4% |
| ROIC | 87.8% | 87.8% | 35.9% | 12.1% | -0.9% | 4.4% | -5.3% | 42.6% | 128.4% |
| ROCE | 77.3% | 77.3% | 40.6% | 13.4% | -0.9% | 4.2% | -4.9% | 28.0% | 57.3% |
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 | 1.66 | 1.66 | 3.26 | 2.53 | 1.72 | 1.56 | — | — | — |
| Debt / EBITDA | 0.82 | 0.82 | 1.53 | 2.79 | 6.57 | 5.73 | 8.79 | 4.16 | 3.08 |
| Net Debt / Equity | — | 0.50 | 2.58 | 2.13 | 1.16 | 0.85 | — | — | — |
| Net Debt / EBITDA | 0.24 | 0.24 | 1.21 | 2.35 | 4.41 | 3.11 | 7.15 | 2.78 | 2.01 |
| Debt / FCF | — | 0.27 | 1.34 | 2.53 | 5.34 | 5.02 | 6.28 | 4.10 | 3.78 |
| Interest Coverage | 20.09 | 20.09 | 5.95 | 2.38 | -0.19 | 1.45 | -0.74 | 2.71 | — |
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 | 3.32 | 3.32 | 2.19 | 1.71 | 3.35 | 5.05 | 1.11 | 2.45 | 3.58 |
| Quick Ratio | 3.32 | 3.32 | 2.19 | 1.71 | 3.35 | 5.05 | 1.11 | 2.45 | 3.58 |
| Cash Ratio | 1.86 | 1.86 | 0.70 | 0.53 | 1.87 | 2.38 | 0.53 | 1.66 | 2.42 |
| Asset Turnover | — | 0.75 | 0.80 | 0.61 | 0.48 | 0.45 | 0.67 | 0.83 | 0.90 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 121.16 | 109.61 | 106.04 | 91.06 | 67.24 | 74.70 | 59.24 | 92.47 |
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 | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.8% | 1.4% | 1.4% | 2.5% | — | 0.1% | — | — | — |
| FCF Yield | 2.2% | 1.7% | 1.9% | 7.3% | 10.5% | 1.1% | — | — | — |
| Buyback Yield | 1.2% | 1.0% | 0.9% | 8.0% | 8.7% | 0.0% | — | — | — |
| Total Shareholder Yield | 1.2% | 1.0% | 0.9% | 8.0% | 8.7% | 0.0% | — | — | — |
| Shares Outstanding | — | $342M | $348M | $363M | $372M | $343M | $215M | $212M | $190M |
Privacy-driven signal degradation
Based on current market data, AppLovin trades at a forward P/E of 29.63, which suggests that investors are increasingly pricing the company as a high-growth ad-tech platform rather than a cyclical gaming entity, despite the inherent volatility associated with its mobile-first revenue model.
The current P/S multiple of 29.24 indicates a significant premium relative to traditional gaming peers, reflecting the market's recognition of the high-margin software segment's dominance. This valuation appears to bake in aggressive expectations for sustained AI-driven margin expansion, warranting caution if growth rates decelerate.
As reported in financial statements, AppLovin's ROIC has surged from 5.1% in 2023Q4 to 34.2% in 2026Q1, illustrating a powerful compounding effect as the company successfully pivots toward a capital-light software model that requires minimal incremental investment to support its growing ad-tech ecosystem.
The dramatic improvement in ROIC suggests that the AXON engine is achieving superior efficiency in capital deployment compared to the legacy gaming business. Investors should monitor whether this trend persists as the company reaches a larger scale and faces increased competition for high-quality ad inventory.
According to recent quarterly filings, the company's DSO has fluctuated between 86 and 135 days over the last ten quarters, indicating that while the software platform is highly profitable, the underlying cash conversion cycle remains sensitive to the timing of payments within the mobile advertising ecosystem.
The high DSO levels suggest that AppLovin may be extending favorable credit terms to maintain its competitive position in the mediation market. This volatility in working capital warrants further investigation to ensure that revenue growth is not being artificially inflated by aggressive receivables management.
Based on the latest balance sheet data, the current ratio has improved to 3.24 in 2026Q1 from 1.71 in 2023Q4, providing a substantial liquidity buffer that appears sufficient to navigate potential industry-wide downturns or regulatory shocks to the mobile advertising attribution landscape.
This liquidity position is a marked improvement, reflecting the company's successful transition to a cash-generative software model. The current ratio suggests that the company is well-positioned to fund ongoing R&D requirements without relying on external financing, even under stress scenarios.
The P/E ratio is frequently misapplied to AppLovin because it fails to account for the significant non-cash impact of stock-based compensation, which obscures the true cash-generating capacity of the software platform and leads to an inaccurate assessment of the company's underlying earnings quality.
Analysts should prioritize P/FCF or EV/EBITDA metrics, adjusting for SBC, to better capture the actual economic value generated by the AXON engine. Relying solely on GAAP P/E may lead to an overestimation of the company's valuation relative to its actual cash-flow-generating potential.
Includes 30+ ratios · 8 years · Updated daily
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Quick answers to the most common questions about buying APP stock.
AppLovin Corporation's current P/E ratio is 54.2x. The historical average is 60.4x. This places it at the 33th percentile of its historical range.
AppLovin Corporation's current EV/EBITDA is 41.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 37.8x.
AppLovin Corporation's return on equity (ROE) is 206.8%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 71.6%.
Based on historical data, AppLovin Corporation is trading at a P/E of 54.2x. This is at the 33th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
AppLovin Corporation has 87.9% gross margin and 75.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
AppLovin Corporation's Debt/EBITDA ratio is 0.8x, indicating low leverage. A ratio below 2x is generally considered financially healthy.