Latest Ratios: P/E Ratio 19.4x · EV/EBITDA 13.5x · ROE 23.1%. (2013–2025 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 | $10.0B | $11.7B | $9.6B | $11.8B | $5.1B | $9.1B | $6.1B | $3.5B | $1.6B | $2.8B | $1.3B |
| Enterprise Value | $12.9B | $14.7B | $10.7B | $12.6B | $6.5B | $10.7B | $6.6B | $4.2B | $2.2B | $3.0B | $1.4B |
| P/E Ratio → | 19.39 | 22.83 | 15.34 | 19.36 | 9.13 | 28.21 | 24.81 | 18.54 | 11.90 | 17.53 | 18.54 |
| P/S Ratio | 1.84 | 2.17 | 1.79 | 2.27 | 1.01 | 2.62 | 2.26 | 1.35 | 0.67 | 1.45 | 0.77 |
| P/B Ratio | 4.30 | 5.07 | 4.32 | 4.61 | 2.63 | 5.59 | 4.54 | 3.07 | 1.49 | 2.78 | 1.39 |
| P/FCF | 14.31 | 16.84 | 13.52 | 15.05 | 12.10 | 26.32 | 19.34 | 15.66 | 13.98 | 31.52 | 21.52 |
| P/OCF | 13.18 | 15.52 | 12.31 | 13.91 | 10.24 | 22.69 | 17.13 | 13.04 | 9.59 | 24.47 | 17.56 |
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 | — | 2.72 | 2.01 | 2.43 | 1.30 | 3.07 | 2.43 | 1.59 | 0.94 | 1.55 | 0.80 |
| EV / EBITDA | 13.46 | 15.30 | 10.45 | 12.46 | 7.08 | 19.23 | 15.80 | 12.22 | 9.04 | 19.28 | 10.42 |
| EV / EBIT | 16.33 | 16.07 | 11.74 | 14.01 | 8.15 | 23.11 | 18.55 | 14.34 | 10.72 | 21.72 | 11.43 |
| EV / FCF | — | 21.10 | 15.18 | 16.05 | 15.53 | 30.76 | 20.80 | 18.48 | 19.58 | 33.63 | 22.23 |
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 | 29.0% | 29.0% | 30.5% | 30.9% | 29.7% | 27.9% | 27.5% | 26.0% | 24.2% | 24.2% | 23.0% |
| Operating Margin | 14.6% | 14.6% | 16.6% | 16.9% | 15.9% | 13.7% | 13.1% | 11.0% | 8.8% | 7.2% | 7.0% |
| Net Profit Margin | 9.6% | 9.6% | 11.7% | 11.8% | 11.1% | 9.3% | 9.1% | 7.3% | 5.7% | 8.3% | 4.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 23.1% | 23.1% | 26.1% | 27.3% | 31.2% | 21.7% | 19.7% | 17.2% | 13.0% | 16.1% | 7.7% |
| ROA | 9.1% | 9.1% | 12.6% | 12.6% | 12.5% | 9.2% | 9.1% | 7.6% | 6.4% | 9.2% | 4.4% |
| ROIC | 13.7% | 13.7% | 19.7% | 19.6% | 18.3% | 14.3% | 14.8% | 12.4% | 10.8% | 9.3% | 9.1% |
| ROCE | 16.1% | 16.1% | 21.2% | 21.4% | 21.7% | 16.3% | 16.0% | 14.0% | 12.3% | 9.9% | 9.1% |
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 | 1.36 | 1.36 | 0.71 | 0.64 | 0.87 | 1.03 | 0.59 | 0.71 | 0.69 | 0.24 | 0.18 |
| Debt / EBITDA | 3.28 | 3.28 | 1.54 | 1.62 | 1.82 | 3.03 | 1.90 | 2.40 | 2.99 | 1.58 | 1.34 |
| Net Debt / Equity | — | 1.28 | 0.53 | 0.31 | 0.74 | 0.94 | 0.34 | 0.55 | 0.60 | 0.19 | 0.05 |
| Net Debt / EBITDA | 3.09 | 3.09 | 1.15 | 0.78 | 1.56 | 2.78 | 1.11 | 1.86 | 2.59 | 1.21 | 0.33 |
| Debt / FCF | — | 4.26 | 1.67 | 1.01 | 3.43 | 4.44 | 1.46 | 2.82 | 5.60 | 2.11 | 0.71 |
| Interest Coverage | 4.33 | 4.33 | 12.50 | 12.06 | 14.09 | 15.87 | 10.95 | 7.71 | 7.30 | 16.97 | 21.73 |
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 | 1.94 | 1.94 | 2.08 | 2.66 | 1.96 | 1.62 | 1.89 | 1.64 | 1.59 | 1.46 | 1.62 |
| Quick Ratio | 1.34 | 1.34 | 1.55 | 2.18 | 1.41 | 1.14 | 1.56 | 1.32 | 1.21 | 1.08 | 1.26 |
| Cash Ratio | 0.22 | 0.22 | 0.52 | 1.10 | 0.30 | 0.19 | 0.66 | 0.39 | 0.23 | 0.16 | 0.41 |
| Asset Turnover | — | 0.80 | 1.13 | 1.01 | 1.09 | 0.82 | 0.97 | 1.01 | 0.97 | 1.09 | 1.03 |
| Inventory Turnover | 7.60 | 7.60 | 9.11 | 9.85 | 8.03 | 7.12 | 12.22 | 13.03 | 10.70 | 11.00 | 11.55 |
| Days Sales Outstanding | — | 60.35 | 51.47 | 56.14 | 60.93 | 69.98 | 57.39 | 59.65 | 62.32 | 59.07 | 52.91 |
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 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.2% | 4.4% | 6.5% | 5.2% | 11.0% | 3.5% | 4.0% | 5.4% | 8.4% | 5.7% | 5.4% |
| FCF Yield | 7.0% | 5.9% | 7.4% | 6.6% | 8.3% | 3.8% | 5.2% | 6.4% | 7.2% | 3.2% | 4.6% |
| Buyback Yield | 4.4% | 3.7% | 10.1% | 0.0% | 4.9% | 0.4% | 0.8% | 3.1% | 4.1% | 5.0% | 1.7% |
| Total Shareholder Yield | 4.4% | 3.7% | 10.1% | 0.0% | 4.9% | 0.4% | 0.8% | 3.1% | 4.1% | 5.0% | 1.7% |
| Shares Outstanding | — | $28M | $31M | $32M | $32M | $33M | $33M | $34M | $36M | $37M | $38M |
Cyclical Residential Exposure
Based on current market data, TopBuild trades at a forward P/E of 23.45, which suggests investors are pricing in a premium for its role as a serial acquirer, despite the inherent cyclicality of its residential construction end-markets as highlighted in recent financial disclosures.
The current valuation multiple appears to reflect a market expectation of sustained inorganic growth rather than purely organic operational expansion. Investors should monitor whether this premium remains justified if the pace of accretive acquisitions slows or if the residential construction cycle enters a more pronounced downturn.
As reported in financial statements, TopBuild's ROIC has trended downward to 2.5% in 2026Q1, indicating that the company's aggressive acquisition strategy may be temporarily suppressing returns on invested capital compared to the higher levels observed in previous fiscal periods.
The compression in ROIC suggests that the capital deployed for recent large-scale acquisitions has yet to reach full operational synergy or that the integration costs are currently outweighing the immediate returns. This trend warrants further investigation to determine if the company can restore its historical efficiency as these new assets are fully absorbed into the hub-and-spoke model.
According to quarterly data, the cash conversion cycle has expanded to 74 days in 2026Q1, reflecting a notable deterioration in working capital efficiency compared to the 49-day cycle observed in 2023Q4, which may indicate challenges in managing inventory levels amidst shifting demand.
The lengthening of the cash conversion cycle suggests that the company is holding inventory longer or experiencing slower collection times, both of which tie up liquidity. This shift appears to be a departure from the company's historical operational discipline and may signal a need for tighter control over supply chain logistics.
Based on reported figures, the D/EBITDA ratio has climbed to 13.44 in 2026Q1, a significant increase from the 6.84 level seen in 2023Q4, suggesting that the company's reliance on debt to fund its consolidation strategy is becoming increasingly pronounced and potentially restrictive.
The rising leverage profile indicates that the company is utilizing more debt to maintain its growth trajectory, which may reduce its financial flexibility in a higher interest rate environment. Investors should monitor the interest coverage ratio, which has declined, as it suggests a narrowing margin of safety for servicing existing debt obligations.
Market participants frequently over-rely on housing starts as the primary indicator for TopBuild's performance, which obscures the company's specific exposure to the late-cycle insulation phase and the structural tailwinds provided by evolving energy efficiency codes, as noted in recent industry analysis.
Using housing starts as a proxy for TopBuild's revenue growth is fundamentally flawed because it ignores the 'intensity of use' factor where insulation volume per square foot is increasing regardless of new build volume. A more accurate assessment would focus on residential completion trends and regional energy code mandates, which provide a more nuanced view of the company's actual demand drivers.
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Quick answers to the most common questions about buying BLD stock.
TopBuild Corp.'s current P/E ratio is 19.4x. The historical average is 18.3x. This places it at the 73th percentile of its historical range.
TopBuild Corp.'s current EV/EBITDA is 13.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.1x.
TopBuild Corp.'s return on equity (ROE) is 23.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 16.2%.
Based on historical data, TopBuild Corp. is trading at a P/E of 19.4x. This is at the 73th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
TopBuild Corp. has 29.0% gross margin and 14.6% operating margin. Operating margin between 10-20% is typical for established companies.
TopBuild Corp.'s Debt/EBITDA ratio is 3.3x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.