Latest Ratios: P/E Ratio 14.4x · EV/EBITDA 15.8x · ROE 37.3%. (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 | $14.5B | $20.4B | $21.2B | $18.1B | $15.9B | $15.6B | $18.9B | $16.9B | $16.4B | $17.3B | $14.6B |
| Enterprise Value | $14.6B | $20.6B | $20.7B | $17.5B | $15.7B | $15.4B | $18.6B | $16.6B | $16.1B | $17.0B | $14.4B |
| P/E Ratio → | 14.42 | 19.29 | 25.03 | 21.52 | 19.99 | 19.17 | 22.30 | 20.43 | 19.93 | 21.50 | 20.21 |
| P/S Ratio | 5.31 | 7.48 | 8.25 | 7.49 | 6.84 | 7.21 | 9.14 | 8.46 | 8.54 | 9.31 | 8.41 |
| P/B Ratio | 5.29 | 7.08 | 7.59 | 6.41 | 5.44 | 4.80 | 5.44 | 4.73 | 4.34 | 4.80 | 4.19 |
| P/FCF | 11.98 | 16.89 | 20.59 | 17.74 | 14.81 | 13.16 | 16.53 | 15.65 | 14.53 | 15.97 | 15.82 |
| P/OCF | 11.72 | 16.52 | 20.12 | 17.42 | 14.51 | 12.98 | 16.26 | 15.28 | 14.31 | 15.56 | 15.42 |
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 | — | 7.55 | 8.07 | 7.27 | 6.76 | 7.09 | 9.02 | 8.32 | 8.38 | 9.18 | 8.30 |
| EV / EBITDA | 15.84 | 22.26 | 21.57 | 18.54 | 17.10 | 16.37 | 19.99 | 18.32 | 17.18 | 18.09 | 16.67 |
| EV / EBIT | 17.61 | 24.74 | 21.25 | 17.94 | 17.80 | 16.92 | 20.59 | 18.82 | 16.37 | 17.53 | 16.95 |
| EV / FCF | — | 17.03 | 20.13 | 17.21 | 14.63 | 12.93 | 16.31 | 15.39 | 14.26 | 15.75 | 15.62 |
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 | 85.4% | 85.4% | 87.6% | 88.3% | 86.9% | 88.1% | 89.0% | 89.2% | 89.5% | 88.5% | 88.4% |
| Operating Margin | 30.5% | 30.5% | 34.2% | 37.2% | 38.0% | 41.9% | 43.8% | 44.2% | 47.7% | 49.8% | 48.9% |
| Net Profit Margin | 38.8% | 38.8% | 33.0% | 34.8% | 34.2% | 37.6% | 41.0% | 41.4% | 42.9% | 43.3% | 41.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 37.3% | 37.3% | 30.1% | 29.2% | 25.8% | 24.3% | 24.1% | 22.5% | 22.3% | 22.6% | 20.6% |
| ROA | 15.6% | 15.6% | 14.8% | 14.7% | 13.7% | 13.9% | 14.6% | 14.2% | 14.5% | 15.0% | 14.1% |
| ROIC | 23.2% | 23.2% | 28.6% | 26.9% | 23.2% | 22.0% | 20.9% | 19.6% | 20.1% | 20.8% | 19.2% |
| ROCE | 17.2% | 17.2% | 23.1% | 23.5% | 21.9% | 21.4% | 20.9% | 19.9% | 20.9% | 22.2% | 21.1% |
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 | 0.68 | 0.68 | 0.01 | — | — | — | — | — | — | — | — |
| Debt / EBITDA | 2.13 | 2.13 | 0.03 | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | 0.06 | -0.17 | -0.19 | -0.07 | -0.08 | -0.07 | -0.08 | -0.08 | -0.07 | -0.05 |
| Net Debt / EBITDA | 0.19 | 0.19 | -0.50 | -0.57 | -0.21 | -0.29 | -0.27 | -0.31 | -0.32 | -0.26 | -0.22 |
| Debt / FCF | — | 0.14 | -0.46 | -0.53 | -0.18 | -0.23 | -0.22 | -0.26 | -0.27 | -0.23 | -0.20 |
| Interest Coverage | — | — | 541.06 | 425.17 | 491.28 | 197.28 | 411.00 | 352.72 | 426.61 | 462.36 | 432.62 |
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 | 2.05 | 2.05 | 1.13 | 1.18 | 1.27 | 1.37 | 1.48 | 1.53 | 1.74 | 1.63 | 1.62 |
| Quick Ratio | 2.05 | 2.05 | 1.13 | 1.18 | 1.27 | 1.37 | 1.48 | 1.53 | 1.74 | 1.63 | 1.62 |
| Cash Ratio | 1.56 | 1.56 | 0.71 | 0.80 | 0.89 | 0.99 | 1.09 | 1.13 | 1.32 | 1.17 | 1.18 |
| Asset Turnover | — | 0.35 | 0.45 | 0.42 | 0.41 | 0.37 | 0.35 | 0.35 | 0.33 | 0.34 | 0.33 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 103.00 | 103.71 | 99.42 | 100.92 | 100.70 | 95.59 | 90.72 | 94.35 | 92.93 | 100.30 |
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 | 6.9% | 5.2% | 4.0% | 4.6% | 5.0% | 5.2% | 4.5% | 4.9% | 5.0% | 4.7% | 4.9% |
| FCF Yield | 8.3% | 5.9% | 4.9% | 5.6% | 6.8% | 7.6% | 6.0% | 6.4% | 6.9% | 6.3% | 6.3% |
| Buyback Yield | 9.7% | 6.9% | 6.1% | 7.1% | 8.2% | 8.3% | 6.9% | 7.6% | 6.7% | 5.8% | 6.7% |
| Total Shareholder Yield | 9.7% | 6.9% | 6.1% | 7.1% | 8.2% | 8.3% | 6.9% | 7.6% | 6.7% | 5.8% | 6.7% |
| Shares Outstanding | — | $110M | $113M | $118M | $126M | $134M | $142M | $152M | $159M | $167M | $173M |
Geopolitical and competitive stagnation
According to current market data, CHKP trades at a forward P/E of 12.48, which significantly discounts the company relative to infrastructure security peers like Palo Alto Networks, suggesting the market views the firm as a mature cash-flow utility rather than a high-growth cloud-native security participant.
The valuation disconnect appears to stem from the market's skepticism regarding the company's ability to accelerate top-line growth in a cloud-dominated landscape. Investors should monitor whether this multiple expansion occurs if the Infinity platform successfully drives higher recurring revenue, as the current pricing implies minimal growth expectations.
Based on reported figures, CHKP's ROIC has fluctuated between 4.1% and 8.3% over the last ten quarters, indicating that while the company remains profitable, its ability to compound returns on invested capital is constrained by a conservative capital allocation strategy that prioritizes buybacks over aggressive growth investments.
The modest ROIC trend suggests that the firm's core security business generates stable returns, but the lack of high-growth reinvestment opportunities may be limiting long-term compounding potential. Analysts should investigate whether the recent leadership transition will shift this focus toward more capital-intensive growth initiatives.
As reported in financial statements, the company's DSO has remained elevated, ranging between 59 and 80 days, which suggests that the complexity of enterprise sales cycles and multi-year contract structures creates inherent friction in the cash conversion process compared to more agile, cloud-native software competitors.
The high DSO reflects the nature of large-scale enterprise security deployments where payment terms are often tied to complex implementation milestones. This operational reality warrants monitoring, as any sustained increase in collection times could signal a weakening in customer leverage or a shift in the competitive landscape.
Based on recent SEC filings, CHKP maintains a fortress balance sheet with negligible debt for most of the observed period, providing a significant buffer that allows the company to navigate geopolitical risks and market volatility without the burden of interest expense or restrictive debt covenants.
The company's ability to operate with minimal leverage is a structural advantage that distinguishes it from peers who rely on debt to fund aggressive M&A or expansion. This financial position appears to be a deliberate choice by management to maintain operational independence and prioritize shareholder returns through consistent buybacks.
The most commonly misapplied metric for CHKP is the headline revenue growth rate, which obscures the underlying quality of the business by ignoring the shift toward multi-year Infinity contracts that defer revenue recognition and mask the true momentum of the company's subscription-based security architecture.
Investors should instead focus on 'Calculated Billings' and deferred revenue growth to better assess the firm's sales performance. Relying solely on GAAP revenue growth may lead to an incorrect conclusion that the business is stagnating, when in fact it is successfully transitioning to a more durable, long-term recurring revenue model.
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Quick answers to the most common questions about buying CHKP stock.
Check Point Software Technologies Ltd.'s current P/E ratio is 14.4x. The historical average is 22.7x. This places it at the 7th percentile of its historical range.
Check Point Software Technologies Ltd.'s current EV/EBITDA is 15.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 20.9x.
Check Point Software Technologies Ltd.'s return on equity (ROE) is 37.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 26.0%.
Based on historical data, Check Point Software Technologies Ltd. is trading at a P/E of 14.4x. This is at the 7th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Check Point Software Technologies Ltd. has 85.4% gross margin and 30.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Check Point Software Technologies Ltd.'s Debt/EBITDA ratio is 2.1x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.