Latest Ratios: P/E Ratio 98.2x · EV/EBITDA 93.3x · ROE 34.4%. (2020–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $45.9B | $34.7B | $7.8B | $2.8B | $1.2B | $1.6B | — | — |
| Enterprise Value | $44.8B | $33.6B | $7.6B | $2.7B | $1.1B | $1.4B | — | — |
| P/E Ratio → | 98.17 | 73.46 | 148.45 | — | — | — | — | — |
| P/S Ratio | 34.42 | 25.99 | 17.86 | 14.36 | 6.45 | 15.04 | — | — |
| P/B Ratio | 22.48 | 16.82 | 11.44 | 5.13 | 3.42 | 4.79 | — | — |
| P/FCF | 112.90 | 85.27 | 268.72 | 162.22 | — | — | — | — |
| P/OCF | 98.96 | 74.75 | 119.83 | 84.66 | — | — | — | — |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 25.14 | 17.35 | 14.09 | 5.95 | 12.76 | — | — |
| EV / EBITDA | 93.33 | 69.91 | 126.45 | — | — | — | — | — |
| EV / EBIT | 100.68 | 70.59 | 138.12 | — | — | — | — | — |
| EV / FCF | — | 82.46 | 261.13 | 159.11 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 68.0% | 68.0% | 64.8% | 61.9% | 57.7% | 60.1% | 65.2% | 85.6% |
| Operating Margin | 33.3% | 33.3% | 8.7% | -19.2% | -11.5% | -20.6% | -43.0% | 3.8% |
| Net Profit Margin | 35.4% | 35.4% | 11.9% | -14.7% | -9.0% | -20.8% | -46.9% | 2.5% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| ROE | 34.4% | 34.4% | 8.5% | -6.4% | -4.9% | -15.9% | — | — |
| ROA | 30.4% | 30.4% | 7.4% | -5.7% | -4.3% | -8.3% | -20.9% | 1.2% |
| ROIC | 48.4% | 48.4% | 6.0% | -7.5% | -9.2% | -17.9% | — | — |
| ROCE | 31.8% | 31.8% | 6.0% | -8.0% | -5.9% | -8.9% | -21.7% | 2.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | 0.02 | 0.03 | 0.04 | 0.05 | — | — |
| Debt / EBITDA | 0.04 | 0.04 | 0.27 | — | — | — | — | — |
| Net Debt / Equity | — | -0.55 | -0.32 | -0.10 | -0.27 | -0.72 | — | — |
| Net Debt / EBITDA | -2.38 | -2.38 | -3.68 | — | — | — | — | -19.03 |
| Debt / FCF | — | -2.81 | -7.59 | -3.11 | — | — | — | — |
| Interest Coverage | — | — | — | — | — | — | — | — |
Net cash position: cash ($1.2B) exceeds total debt ($21M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 10.15 | 10.15 | 6.62 | 11.88 | 10.58 | 12.54 | 11.00 | 5.16 |
| Quick Ratio | 8.88 | 8.88 | 5.79 | 11.30 | 9.09 | 11.50 | 10.43 | 5.04 |
| Cash Ratio | 7.32 | 7.32 | 4.00 | 9.19 | 7.02 | 9.79 | 8.28 | 3.98 |
| Asset Turnover | — | 0.58 | 0.54 | 0.32 | 0.46 | 0.28 | 0.38 | 0.50 |
| Inventory Turnover | 1.70 | 1.70 | 1.71 | 2.84 | 1.69 | 1.55 | 2.87 | 3.40 |
| Days Sales Outstanding | — | 63.80 | 135.50 | 153.63 | 116.89 | 135.73 | 113.22 | 122.30 |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.0% | 1.4% | 0.7% | — | — | — | — | — |
| FCF Yield | 0.9% | 1.2% | 0.4% | 0.6% | — | — | — | — |
| Buyback Yield | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $188M | $181M | $155M | $147M | $145M | $140M | $73M |
Hyperscale customer concentration
Based on current market data, Credo trades at a P/S ratio of 33.24, which suggests that investors are pricing in aggressive long-term revenue expansion that significantly outpaces the broader semiconductor sector's historical valuation multiples for companies with similar hardware-centric revenue profiles.
The forward P/E of 38.99 implies that the market expects a sustained earnings trajectory, though this valuation remains sensitive to any deceleration in hyperscale infrastructure spending. Investors should monitor whether the current premium is justified by the company's ability to maintain its proprietary SerDes performance edge against larger, more diversified competitors.
As reported in recent financial statements, Credo's ROIC has improved to 14.9% in 2026Q4, marking a significant recovery from negative returns in early 2025 and indicating that the company is successfully generating value from its invested capital as it scales its fabless manufacturing model.
This trend suggests that the company's 'N-1' process node strategy is effectively optimizing capital allocation by avoiding the excessive costs associated with leading-edge silicon. The improvement in ROIC appears driven by both margin expansion and the efficient utilization of its asset base, warranting further investigation into whether these returns can remain elevated as the product mix matures.
According to quarterly filings, the cash conversion cycle reached 134 days in 2026Q4, a figure that appears elevated compared to historical norms and reflects the aggressive inventory pre-building required to support the rapid deployment schedules of major hyperscale data center customers.
The high days inventory outstanding (DIO) of 150 days suggests that the company is prioritizing supply chain reliability over lean inventory management to mitigate potential bottlenecks. While this strategy supports revenue growth, it may indicate a structural need for higher working capital levels that could impact free cash flow during periods of slower demand.
Based on the latest balance sheet data, Credo maintains a current ratio of 10.15 as of 2026Q4, which provides an exceptional liquidity buffer that appears designed to withstand significant volatility in hyperscale capital expenditure cycles or potential disruptions in the global semiconductor supply chain.
The company's minimal debt-to-equity ratio of 0.01 underscores a conservative capital structure that is largely insulated from interest rate fluctuations. This liquidity position appears to offer management significant flexibility for strategic R&D investment or potential M&A, though investors should monitor whether this cash remains underutilized over the long term.
The P/E ratio is frequently misapplied to Credo's business model, as it obscures the significant impact of stock-based compensation and the lumpy nature of IP licensing revenue, which can create artificial volatility in reported earnings that does not reflect the underlying cash-generating capacity of the firm.
Analysts should instead focus on free cash flow margins and adjusted EBITDA, which better capture the true economic profitability of the company's fabless silicon operations. Relying solely on P/E may lead to an incomplete assessment of the company's valuation, particularly given the high non-cash expenses inherent in its growth-stage compensation structure.
Includes 30+ ratios · 7 years · Updated daily
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Quick answers to the most common questions about buying CRDO stock.
Credo Technology Group Holding Ltd's current P/E ratio is 98.2x. The historical average is 111.0x. This places it at the 50th percentile of its historical range.
Credo Technology Group Holding Ltd's current EV/EBITDA is 93.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 69.9x.
Credo Technology Group Holding Ltd's return on equity (ROE) is 34.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 3.2%.
Based on historical data, Credo Technology Group Holding Ltd is trading at a P/E of 98.2x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Credo Technology Group Holding Ltd has 68.0% gross margin and 33.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Credo Technology Group Holding Ltd's Debt/EBITDA ratio is 0.0x, indicating low leverage. A ratio below 2x is generally considered financially healthy.