Latest Ratios: P/E Ratio 37.2x · EV/EBITDA 20.2x · ROE N/A. (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 | $56.4B | $40.7B | $24.3B | $24.8B | $14.6B | $16.8B | $15.3B | $14.2B | $15.4B | $24.9B | $25.7B |
| Enterprise Value | $61.9B | $46.1B | $24.8B | $25.9B | $15.7B | $20.1B | $19.3B | $19.7B | $22.6B | $28.5B | $28.9B |
| P/E Ratio → | 37.16 | 26.05 | 28.50 | 75.06 | — | 27.45 | — | 10.40 | 60.28 | 19.33 | 18.06 |
| P/S Ratio | 0.25 | 0.18 | 0.11 | 0.12 | 0.08 | 0.10 | 0.10 | 0.10 | 0.11 | 0.19 | 0.21 |
| P/B Ratio | — | — | — | — | — | 9.36 | 8.53 | 2.24 | 2.54 | 3.65 | 3.92 |
| P/FCF | 30.49 | 21.98 | 7.47 | 10.49 | 5.33 | 8.27 | 9.65 | 5.92 | 6.45 | 31.29 | 10.27 |
| P/OCF | 23.53 | 16.96 | 6.46 | 8.71 | 4.67 | 6.91 | 7.80 | 5.21 | 5.56 | 21.06 | 8.66 |
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 | — | 0.21 | 0.11 | 0.13 | 0.09 | 0.12 | 0.13 | 0.14 | 0.17 | 0.22 | 0.24 |
| EV / EBITDA | 20.19 | 15.05 | 12.68 | 17.92 | 184.37 | 16.01 | — | 6.43 | 19.54 | 10.03 | 9.33 |
| EV / EBIT | 27.20 | 19.92 | 19.78 | 34.64 | — | 39.95 | — | 9.62 | 224.07 | 13.39 | 11.79 |
| EV / FCF | — | 24.93 | 7.62 | 10.95 | 5.73 | 9.90 | 12.17 | 8.22 | 9.49 | 35.70 | 11.54 |
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 | 3.7% | 3.7% | 3.3% | 3.4% | 3.6% | 4.2% | 4.5% | 4.7% | 5.2% | 5.0% | 5.4% |
| Operating Margin | 1.0% | 1.0% | 0.5% | 0.4% | -0.3% | 0.3% | -2.7% | 1.4% | 0.1% | 1.6% | 2.0% |
| Net Profit Margin | 0.7% | 0.7% | 0.4% | 0.2% | -0.5% | 0.4% | -2.4% | 0.9% | 0.2% | 1.0% | 1.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | -172.4% | 34.1% | -90.9% | 22.0% | 4.0% | 19.2% | 22.2% |
| ROA | 3.2% | 3.2% | 1.9% | 0.8% | -2.1% | 1.4% | -9.0% | 3.4% | 0.6% | 3.5% | 4.4% |
| ROIC | 3378.7% | 3378.7% | — | — | -16.6% | 6.5% | -34.9% | 12.3% | 0.8% | 15.8% | 21.8% |
| ROCE | 19.2% | 19.2% | 13.0% | 6.6% | -4.0% | 2.8% | -24.1% | 12.1% | 0.7% | 12.7% | 18.0% |
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 | — | — | — | — | — | 3.74 | 3.78 | 1.27 | 1.49 | 1.52 | 0.84 |
| Debt / EBITDA | 3.05 | 3.05 | 2.87 | 3.58 | 68.29 | 5.35 | — | 2.62 | 7.78 | 3.66 | 1.79 |
| Net Debt / Equity | — | — | — | — | — | 1.84 | 2.23 | 0.87 | 1.20 | 0.51 | 0.48 |
| Net Debt / EBITDA | 1.78 | 1.78 | 0.24 | 0.76 | 12.80 | 2.64 | — | 1.80 | 6.26 | 1.24 | 1.03 |
| Debt / FCF | — | 2.96 | 0.15 | 0.47 | 0.40 | 1.63 | 2.53 | 2.30 | 3.04 | 4.41 | 1.27 |
| Interest Coverage | 10.77 | 10.77 | 24.55 | 8.89 | -4.33 | 2.79 | -14.85 | 6.96 | 0.31 | 10.57 | 13.79 |
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 | 0.94 | 0.94 | 0.98 | 1.00 | 1.08 | 1.12 | 1.10 | 1.07 | 1.07 | 1.34 | 1.11 |
| Quick Ratio | 0.50 | 0.50 | 0.56 | 0.52 | 0.57 | 0.60 | 0.54 | 0.54 | 0.53 | 0.80 | 0.58 |
| Cash Ratio | 0.10 | 0.10 | 0.14 | 0.12 | 0.15 | 0.12 | 0.12 | 0.10 | 0.08 | 0.32 | 0.12 |
| Asset Turnover | — | 4.19 | 5.03 | 4.73 | 4.13 | 3.65 | 3.75 | 3.55 | 3.42 | 3.24 | 3.56 |
| Inventory Turnover | 12.74 | 12.74 | 14.67 | 12.29 | 11.18 | 10.67 | 11.07 | 10.82 | 10.53 | 10.92 | 10.83 |
| Days Sales Outstanding | — | 21.72 | 19.45 | 19.78 | 21.26 | 20.45 | 19.72 | 21.19 | 20.81 | 22.60 | 22.24 |
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 | 0.9% | 1.2% | 2.1% | 2.1% | 3.8% | 3.4% | 3.7% | 4.1% | 3.8% | 2.3% | 2.0% |
| Payout Ratio | 31.6% | 31.6% | 58.6% | 159.1% | — | 93.8% | — | 42.3% | 227.0% | 44.8% | 35.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.7% | 3.8% | 3.5% | 1.3% | — | 3.6% | — | 9.6% | 1.7% | 5.2% | 5.5% |
| FCF Yield | 3.3% | 4.6% | 13.4% | 9.5% | 18.8% | 12.1% | 10.4% | 16.9% | 15.5% | 3.2% | 9.7% |
| Buyback Yield | 1.4% | 1.9% | 3.1% | 8.1% | 6.9% | 1.2% | 2.3% | 4.2% | 3.6% | 2.4% | 2.5% |
| Total Shareholder Yield | 2.2% | 3.1% | 5.1% | 10.2% | 10.7% | 4.6% | 6.0% | 8.3% | 7.4% | 4.7% | 4.5% |
| Shares Outstanding | — | $242M | $247M | $262M | $279M | $294M | $293M | $301M | $315M | $320M | $330M |
Margin compression and leverage
Based on current market data, Cardinal Health trades at a TTM P/E of 36.89, which appears elevated relative to its historical norms and peer group, suggesting that investors are pricing in a significant turnaround in the Medical segment that has yet to materialize in reported earnings.
The forward P/E of 22.10 indicates that the market expects a substantial earnings recovery, yet this valuation remains sensitive to the volatility of the pharmaceutical distribution cycle. Investors should monitor whether the current premium is justified by operational improvements or if it reflects an over-optimistic outlook on the Medical 2.0 transformation plan.
As reported in financial statements, ROIC has fluctuated dramatically from 12.1% to 47.1% over the last ten quarters, reflecting the impact of large, lumpy acquisition-related charges and the inherent difficulty of generating consistent returns on invested capital within a low-margin, high-volume distribution business model.
The wide variance in ROIC suggests that the company's capital allocation strategy is heavily influenced by inorganic growth, which often obscures the underlying efficiency of the core distribution business. Analysts should look past these headline figures to assess whether the company can sustain returns above its cost of capital without relying on periodic asset revaluations.
According to recent quarterly filings, the company maintains a negative cash conversion cycle, consistently ranging between -5 and -10 days, which demonstrates the firm's ability to leverage its scale to extract favorable payment terms from suppliers while maintaining high-velocity inventory turnover across its distribution network.
This negative CCC is a critical structural advantage that effectively funds the company's operations through supplier credit rather than external financing. However, any disruption in the timing of these payables or a slowdown in inventory velocity could rapidly strain the company's liquidity position, given the razor-thin operating margins.
As indicated by the latest quarterly data, the debt-to-EBITDA ratio has remained elevated, peaking at 14.67 in 2025Q4, which highlights the significant interest burden the company carries while attempting to navigate a capital-intensive turnaround in its medical manufacturing and distribution segments.
The interest coverage ratio has shown extreme volatility, ranging from 5.04 to over 170, suggesting that the company's ability to service its debt is highly dependent on the timing of non-recurring charges and operational cash flow swings. Investors should remain cautious regarding the company's reliance on debt to fund its ongoing strategic initiatives.
Based on an analysis of the business model, the P/E ratio is the most commonly misapplied metric for Cardinal Health, as it fails to account for the massive, low-margin revenue base that is primarily a pass-through for high-cost pharmaceutical products.
Using P/E ignores the fact that a significant portion of the company's revenue is essentially a flow-through, making EV/EBITDA or even price-to-contribution-margin a more accurate reflection of the company's true earning power. Relying on P/E can lead to distorted valuation conclusions, as it treats the company like a traditional manufacturer rather than a logistics-heavy distributor.
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Quick answers to the most common questions about buying CAH stock.
Cardinal Health, Inc.'s current P/E ratio is 37.2x. The historical average is 24.2x. This places it at the 89th percentile of its historical range.
Cardinal Health, Inc.'s current EV/EBITDA is 20.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.0x.
Based on historical data, Cardinal Health, Inc. is trading at a P/E of 37.2x. This is at the 89th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Cardinal Health, Inc.'s current dividend yield is 0.85% with a payout ratio of 31.6%.
Cardinal Health, Inc. has 3.7% gross margin and 1.0% operating margin.
Cardinal Health, Inc.'s Debt/EBITDA ratio is 3.0x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.