Latest Ratios: P/E Ratio 29.4x · EV/EBITDA 16.6x · ROE 24.9%. (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 | $10.4B | $8.7B | $9.2B | $7.8B | $6.8B | $8.5B | $6.2B | $6.5B | $6.3B | $6.4B | $4.9B |
| Enterprise Value | $10.9B | $9.2B | $9.5B | $8.2B | $7.3B | $8.8B | $6.7B | $7.0B | $6.6B | $6.7B | $5.2B |
| P/E Ratio → | 29.36 | 23.60 | 22.14 | 21.67 | 20.45 | 29.55 | 24.17 | 24.37 | 35.07 | 27.29 | 25.44 |
| P/S Ratio | 2.81 | 2.35 | 2.56 | 2.26 | 2.06 | 2.97 | 2.40 | 2.29 | 2.31 | 2.68 | 2.19 |
| P/B Ratio | 7.42 | 5.96 | 6.16 | 5.88 | 6.01 | 7.46 | 6.21 | 7.25 | 7.31 | 7.41 | 6.31 |
| P/FCF | 30.53 | 25.49 | 22.54 | 18.21 | 40.62 | 24.70 | 23.44 | 33.31 | 37.76 | 25.80 | 22.84 |
| P/OCF | 24.78 | 20.69 | 18.63 | 14.26 | 26.95 | 21.11 | 16.03 | 18.82 | 23.99 | 20.52 | 17.02 |
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 | — | 2.50 | 2.66 | 2.40 | 2.21 | 3.08 | 2.58 | 2.45 | 2.43 | 2.81 | 2.34 |
| EV / EBITDA | 16.64 | 14.03 | 14.85 | 14.38 | 13.60 | 18.31 | 15.59 | 14.85 | 14.55 | 16.52 | 14.88 |
| EV / EBIT | 19.61 | 17.84 | 17.13 | 16.88 | 16.13 | 22.31 | 18.91 | 17.63 | 17.26 | 19.54 | 18.68 |
| EV / FCF | — | 27.11 | 23.44 | 19.31 | 43.60 | 25.58 | 25.19 | 35.66 | 39.79 | 27.03 | 24.37 |
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 | 34.8% | 34.8% | 35.5% | 33.8% | 32.3% | 34.0% | 33.8% | 33.3% | 34.2% | 34.7% | 34.0% |
| Operating Margin | 15.1% | 15.1% | 15.2% | 14.0% | 13.4% | 13.5% | 13.2% | 13.6% | 13.9% | 13.9% | 12.3% |
| Net Profit Margin | 9.9% | 9.9% | 11.5% | 10.5% | 10.1% | 10.1% | 10.0% | 9.4% | 6.6% | 9.8% | 8.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 24.9% | 24.9% | 29.5% | 29.2% | 29.3% | 26.9% | 27.1% | 30.4% | 20.9% | 28.6% | 24.6% |
| ROA | 12.5% | 12.5% | 14.6% | 13.4% | 13.3% | 12.4% | 11.7% | 13.0% | 9.1% | 12.4% | 10.6% |
| ROIC | 21.7% | 21.7% | 22.4% | 21.0% | 21.6% | 19.9% | 18.1% | 22.8% | 24.1% | 21.8% | 18.1% |
| ROCE | 25.6% | 25.6% | 26.2% | 24.1% | 23.6% | 21.2% | 19.4% | 24.5% | 25.3% | 24.0% | 22.0% |
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 | 0.50 | 0.50 | 0.40 | 0.50 | 0.61 | 0.46 | 0.70 | 0.71 | 0.63 | 0.71 | 0.74 |
| Debt / EBITDA | 1.11 | 1.11 | 0.93 | 1.15 | 1.29 | 1.10 | 1.64 | 1.36 | 1.19 | 1.51 | 1.63 |
| Net Debt / Equity | — | 0.38 | 0.25 | 0.35 | 0.44 | 0.27 | 0.46 | 0.51 | 0.39 | 0.35 | 0.42 |
| Net Debt / EBITDA | 0.84 | 0.84 | 0.57 | 0.82 | 0.93 | 0.64 | 1.09 | 0.98 | 0.74 | 0.75 | 0.93 |
| Debt / FCF | — | 1.62 | 0.90 | 1.10 | 2.98 | 0.89 | 1.75 | 2.35 | 2.03 | 1.23 | 1.53 |
| Interest Coverage | 21.34 | 21.34 | 26.01 | 25.41 | 30.42 | 30.31 | 20.26 | 19.85 | 18.07 | 17.51 | 13.43 |
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 | 1.93 | 1.93 | 1.84 | 1.70 | 2.23 | 2.05 | 2.70 | 2.32 | 2.40 | 2.38 | 1.86 |
| Quick Ratio | 1.25 | 1.25 | 1.23 | 1.15 | 1.44 | 1.42 | 1.90 | 1.64 | 1.69 | 1.77 | 1.43 |
| Cash Ratio | 0.24 | 0.24 | 0.30 | 0.25 | 0.31 | 0.37 | 0.58 | 0.37 | 0.44 | 0.64 | 0.45 |
| Asset Turnover | — | 1.24 | 1.23 | 1.24 | 1.27 | 1.19 | 1.15 | 1.33 | 1.38 | 1.20 | 1.24 |
| Inventory Turnover | 4.68 | 4.68 | 4.85 | 5.43 | 4.46 | 4.90 | 5.30 | 5.70 | 5.38 | 5.28 | 6.26 |
| Days Sales Outstanding | — | 65.49 | 64.09 | 63.80 | 68.06 | 70.69 | 64.37 | 67.93 | 71.37 | 76.59 | 74.37 |
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 | 1.2% | 1.5% | 1.3% | 1.5% | 1.6% | 1.3% | 1.7% | 1.5% | 1.5% | 1.5% | 1.9% |
| Payout Ratio | 35.9% | 35.9% | 29.7% | 31.9% | 33.1% | 37.4% | 41.4% | 37.3% | 52.5% | 39.7% | 47.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.4% | 4.2% | 4.5% | 4.6% | 4.9% | 3.4% | 4.1% | 4.1% | 2.9% | 3.7% | 3.9% |
| FCF Yield | 3.3% | 3.9% | 4.4% | 5.5% | 2.5% | 4.0% | 4.3% | 3.0% | 2.6% | 3.9% | 4.4% |
| Buyback Yield | 3.2% | 3.8% | 1.9% | 1.8% | 2.5% | 1.7% | 1.5% | 2.0% | 1.9% | 2.2% | 1.7% |
| Total Shareholder Yield | 4.4% | 5.3% | 3.2% | 3.3% | 4.1% | 2.9% | 3.2% | 3.5% | 3.4% | 3.7% | 3.6% |
| Shares Outstanding | — | $120M | $123M | $124M | $125M | $128M | $128M | $130M | $132M | $134M | $135M |
Cyclical OEM demand exposure
According to recent market data, Donaldson trades at a forward P/E of 22.39, which, when compared to its historical averages and peer group, suggests that investors are paying a premium for the company's recurring aftermarket revenue stream despite the inherent cyclicality of its industrial machinery end-markets.
The current P/E multiple appears to bake in expectations for consistent margin expansion, yet the PEG ratio of 3.30 indicates that this valuation may be stretched relative to near-term growth prospects. Investors should monitor whether the company's shift toward higher-margin industrial solutions can justify these multiples if OEM demand remains soft.
Based on reported figures, Donaldson's ROIC has fluctuated between 3.3% and 6.1% over the last ten quarters, a trend that suggests the company is struggling to compound returns on invested capital at a rate that would typically justify its high valuation relative to more efficient industrial peers.
The modest ROIC levels appear to be a function of the company's heavy manufacturing footprint and the capital intensity required to maintain its global distribution network. This performance warrants further investigation into whether management's recent reorganization can drive the operational efficiencies necessary to improve capital productivity.
As reported in financial statements, the company's cash conversion cycle has remained elevated, peaking at 95 days in 2026Q2, which indicates that Donaldson's reliance on a fragmented distributor network creates significant working capital drag that periodically pressures its short-term cash flow generation and operational agility.
The persistent DIO levels suggest that inventory management remains a critical lever for cash flow optimization, particularly during periods of softening demand. Investors should monitor the DSO and DPO trends to determine if the company is effectively leveraging its supplier relationships to offset the impact of slower inventory turnover.
Based on the provided quarterly data, Donaldson maintains a debt-to-equity ratio of 0.36 as of 2026Q3, a figure that underscores a conservative capital structure that remains significantly more robust than the broader industrial sector average, providing the company with substantial dry powder for strategic capital allocation.
The interest coverage ratio of 23.82 suggests that debt service is well-supported by operating income, effectively insulating the company from the risks of a higher-rate environment. This financial strength appears to be a core pillar of the company's long-term strategy, allowing for consistent dividend growth despite cyclical revenue headwinds.
The P/E ratio is frequently misapplied to Donaldson because it obscures the high-margin, recurring nature of the aftermarket filtration business by blending it with the lower-margin, cyclical OEM segment, thereby failing to capture the true quality and durability of the company's underlying earnings power.
Analysts should instead focus on EV/EBITDA or segment-specific margin analysis to better isolate the value of the aftermarket 'razor/blade' model. Relying solely on P/E may lead to an inaccurate assessment of the company's valuation during periods of temporary OEM destocking or cyclical downturns.
Includes 30+ ratios · 30 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying DCI stock.
Donaldson Company, Inc.'s current P/E ratio is 29.4x. The historical average is 21.9x. This places it at the 93th percentile of its historical range.
Donaldson Company, Inc.'s current EV/EBITDA is 16.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.9x.
Donaldson Company, Inc.'s return on equity (ROE) is 24.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 24.8%.
Based on historical data, Donaldson Company, Inc. is trading at a P/E of 29.4x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Donaldson Company, Inc.'s current dividend yield is 1.22% with a payout ratio of 35.9%.
Donaldson Company, Inc. has 34.8% gross margin and 15.1% operating margin. Operating margin between 10-20% is typical for established companies.
Donaldson Company, Inc.'s Debt/EBITDA ratio is 1.1x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.