Latest Ratios: P/E Ratio 40.4x · EV/EBITDA 22.1x · ROE 10.5%. (2017–2025 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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $57.4B | $44.7B | $62.2B | $49.0B | $35.5B | $48.3B | $33.2B | — | — | — |
| Enterprise Value | $68.5B | $55.9B | $71.0B | $53.8B | $41.4B | $55.5B | $41.1B | — | — | — |
| P/E Ratio → | 40.39 | 31.08 | 11.10 | 35.25 | 10.06 | 29.01 | 16.76 | — | — | — |
| P/S Ratio | 2.64 | 2.06 | 2.77 | 2.59 | 2.05 | 2.34 | 1.90 | — | — | — |
| P/B Ratio | 4.12 | 3.17 | 4.32 | 5.44 | 4.40 | 6.81 | 5.05 | — | — | — |
| P/FCF | 33.81 | 26.36 | 1414.38 | 22.60 | 24.91 | 25.51 | 24.06 | — | — | — |
| P/OCF | 27.46 | 21.42 | 110.54 | 18.80 | 20.38 | 21.59 | 19.62 | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.57 | 3.16 | 2.84 | 2.39 | 2.69 | 2.36 | — | — | — |
| EV / EBITDA | 22.13 | 18.05 | 18.30 | 20.29 | 9.60 | 18.61 | 12.03 | — | — | — |
| EV / EBIT | 31.85 | 30.36 | 30.46 | 24.37 | 21.14 | 21.62 | 19.82 | — | — | — |
| EV / FCF | — | 32.91 | 1613.04 | 24.81 | 29.02 | 29.33 | 29.79 | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 25.9% | 25.9% | 26.8% | 27.3% | 24.9% | 29.1% | 29.4% | 29.3% | 29.6% | 29.4% |
| Operating Margin | 9.9% | 9.9% | 11.8% | 11.4% | 23.0% | 12.8% | 17.7% | 13.4% | 19.2% | 17.0% |
| Net Profit Margin | 6.9% | 6.9% | 24.9% | 7.1% | 20.4% | 8.1% | 11.4% | 11.4% | 14.5% | 6.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.5% | 10.5% | 47.9% | 15.8% | 46.6% | 24.3% | 18.9% | 14.7% | 18.8% | 8.3% |
| ROA | 4.0% | 4.0% | 16.0% | 4.6% | 13.5% | 6.5% | 8.3% | 9.6% | 12.5% | 5.6% |
| ROIC | 6.7% | 6.7% | 10.8% | 11.7% | 21.1% | 13.8% | 16.1% | 13.5% | 20.2% | 16.7% |
| ROCE | 7.2% | 7.2% | 9.6% | 9.4% | 20.1% | 13.4% | 16.3% | 14.2% | 20.8% | 17.1% |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.90 | 0.90 | 0.88 | 1.62 | 1.16 | 1.44 | 1.68 | 0.05 | 0.02 | 0.01 |
| Debt / EBITDA | 4.09 | 4.09 | 3.28 | 5.52 | 2.17 | 3.43 | 3.23 | 0.24 | 0.07 | 0.05 |
| Net Debt / Equity | — | 0.79 | 0.61 | 0.53 | 0.72 | 1.02 | 1.20 | -0.02 | -0.06 | -0.08 |
| Net Debt / EBITDA | 3.59 | 3.59 | 2.25 | 1.80 | 1.36 | 2.43 | 2.32 | -0.10 | -0.21 | -0.34 |
| Debt / FCF | — | 6.55 | 198.66 | 2.20 | 4.10 | 3.82 | 5.74 | -0.15 | -0.47 | -0.66 |
| Interest Coverage | 5.33 | 5.33 | 4.02 | 7.21 | 6.48 | 8.05 | 6.96 | 35.24 | 34.12 | 12.07 |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.20 | 1.20 | 1.25 | 2.80 | 1.64 | 1.72 | 1.67 | 1.33 | 1.37 | 1.41 |
| Quick Ratio | 0.85 | 0.85 | 0.96 | 2.54 | 1.20 | 1.42 | 1.35 | 1.04 | 1.06 | 1.05 |
| Cash Ratio | 0.22 | 0.22 | 0.50 | 1.41 | 0.58 | 0.45 | 0.61 | 0.21 | 0.25 | 0.31 |
| Asset Turnover | — | 0.58 | 0.60 | 0.58 | 0.66 | 0.79 | 0.70 | 0.83 | 0.87 | 0.81 |
| Inventory Turnover | 6.49 | 6.49 | 7.16 | 7.56 | 4.92 | 7.41 | 7.57 | 9.87 | 9.76 | 8.23 |
| Days Sales Outstanding | — | 44.29 | 43.03 | 40.06 | 71.15 | 51.46 | 71.87 | 65.67 | 62.51 | 54.46 |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.3% | 1.7% | 1.1% | 1.3% | 1.4% | 0.9% | 0.4% | — | — | — |
| Payout Ratio | 51.7% | 51.7% | 12.0% | 46.0% | 14.4% | 25.1% | 7.0% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.5% | 3.2% | 9.0% | 2.8% | 9.9% | 3.4% | 6.0% | — | — | — |
| FCF Yield | 3.0% | 3.8% | 0.1% | 4.4% | 4.0% | 3.9% | 4.2% | — | — | — |
| Buyback Yield | 5.0% | 6.5% | 3.1% | 0.1% | 3.9% | 1.1% | 0.0% | — | — | — |
| Total Shareholder Yield | 6.4% | 8.2% | 4.2% | 1.4% | 5.3% | 2.0% | 0.4% | — | — | — |
| Shares Outstanding | — | $847M | $912M | $853M | $861M | $890M | $880M | $866M | $873M | $873M |
Portfolio transformation execution risk
According to current market data, Carrier trades at a forward P/E of 26.24, which appears to price in significant margin expansion that remains unproven given the company's recent volatility and the ongoing integration of the Viessmann acquisition compared to more stable peers like Trane Technologies.
The current valuation multiple suggests that investors are paying a premium for the company's transition to a pure-play HVAC model, yet the forward EV/EBITDA of 18.52 implies a high bar for operational execution. This pricing warrants caution, as it assumes a level of earnings stability that has not been consistently demonstrated in recent quarterly results.
Based on reported figures, Carrier's ROIC has trended downward to 0.8% in 2026Q1, a significant decay from historical levels that highlights the difficulty in generating adequate returns on the capital deployed for recent large-scale acquisitions during a period of softening demand in key European markets.
The persistent decline in ROIC suggests that the company is struggling to achieve the necessary synergies to justify its recent capital allocation strategy. Investors should monitor whether this trend is a temporary byproduct of integration costs or a more structural issue regarding the profitability of the newly acquired climate-focused assets.
As reported in financial statements, Carrier's cash conversion cycle has fluctuated significantly, reaching 42 days in 2026Q1, which reflects ongoing challenges in managing inventory and receivables effectively while navigating the complex divestiture of non-core business segments and the integration of new climate technology operations.
The variability in the CCC indicates that the company's working capital management is currently reactive rather than optimized. This inefficiency appears to be a drag on free cash flow, as the company struggles to align its inventory levels with the shifting demand patterns in the residential and commercial HVAC sectors.
According to recent SEC filings, Carrier's debt-to-EBITDA ratio has spiked to 21.90 as of 2026Q1, a concerning level that suggests the company's ability to service its debt obligations is under significant pressure compared to its historical performance and the more conservative balance sheets of its primary industrial peers.
The elevated leverage profile, combined with an interest coverage ratio that has compressed to 2.88, indicates that the company has limited financial flexibility. This situation warrants further investigation into management's deleveraging timeline, as the current debt burden may restrict the company's ability to invest in future growth initiatives.
The P/E ratio is frequently misapplied to Carrier, as it obscures the massive impact of non-recurring divestiture gains and integration costs that distort GAAP earnings, making it a poor metric for assessing the underlying earning power of the company's core HVAC operations during this transition.
Investors should instead focus on adjusted EBITDA or free cash flow metrics to better understand the company's operational health. Relying on the P/E ratio in the current environment likely leads to a misunderstanding of the company's true cash-generating capability and its ability to sustain its current dividend and capital allocation strategy.
Includes 30+ ratios · 9 years · Updated daily
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Quick answers to the most common questions about buying CARR stock.
Carrier Global Corporation's current P/E ratio is 40.4x. The historical average is 22.2x. This places it at the 100th percentile of its historical range.
Carrier Global Corporation's current EV/EBITDA is 22.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.1x.
Carrier Global Corporation's return on equity (ROE) is 10.5%. The historical average is 22.9%.
Based on historical data, Carrier Global Corporation is trading at a P/E of 40.4x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Carrier Global Corporation's current dividend yield is 1.33% with a payout ratio of 51.7%.
Carrier Global Corporation has 25.9% gross margin and 9.9% operating margin.
Carrier Global Corporation's Debt/EBITDA ratio is 4.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.