Latest Ratios: P/E Ratio 38.3x · EV/EBITDA 18.0x · ROE 11.2%. (1997–2026 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 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.3B | $6.5B | $10.1B | $7.6B | $6.3B | $6.3B | $5.2B | $3.7B | $2.4B | $2.2B | $1.7B |
| Enterprise Value | $5.9B | $6.2B | $9.9B | $7.3B | $6.0B | $6.1B | $5.1B | $3.7B | $2.4B | $2.2B | $1.6B |
| P/E Ratio → | 38.29 | 39.14 | 70.63 | 65.37 | 61.88 | 72.77 | 100.10 | 99.58 | 77.65 | 81.00 | 70.48 |
| P/S Ratio | 8.43 | 8.79 | 15.54 | 13.27 | 12.99 | 14.77 | 15.02 | 11.40 | 8.78 | 9.21 | 8.20 |
| P/B Ratio | 3.98 | 4.07 | 7.30 | 6.14 | 5.74 | 6.27 | 5.75 | 4.52 | 4.53 | 4.38 | 3.88 |
| P/FCF | 23.61 | 24.60 | 47.59 | 37.48 | 33.88 | 36.62 | 41.08 | 37.37 | 33.18 | 32.60 | 24.71 |
| P/OCF | 23.10 | 24.07 | 46.13 | 36.48 | 32.81 | 35.61 | 39.90 | 35.62 | 30.95 | 30.30 | 23.03 |
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 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 8.32 | 15.19 | 12.72 | 12.44 | 14.29 | 14.67 | 11.30 | 8.77 | 9.21 | 8.02 |
| EV / EBITDA | 18.01 | 18.81 | 38.60 | 34.91 | 31.04 | 36.41 | 37.61 | 32.33 | 28.02 | 29.78 | 25.40 |
| EV / EBIT | 24.68 | 25.78 | 52.42 | 47.80 | 45.59 | 59.38 | 71.49 | 70.07 | 57.98 | 60.70 | 50.88 |
| EV / FCF | — | 23.30 | 46.52 | 35.93 | 32.44 | 35.44 | 40.13 | 37.06 | 33.15 | 32.63 | 24.14 |
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 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 65.9% | 65.9% | 75.6% | 75.9% | 76.7% | 76.0% | 74.2% | 73.7% | 72.7% | 73.2% | 72.5% |
| Operating Margin | 32.3% | 32.3% | 27.8% | 24.9% | 26.8% | 24.4% | 20.5% | 16.0% | 15.1% | 15.1% | 15.1% |
| Net Profit Margin | 22.5% | 22.5% | 22.0% | 20.2% | 21.0% | 20.3% | 14.9% | 11.4% | 11.4% | 11.3% | 11.7% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.2% | 11.2% | 10.9% | 9.9% | 9.7% | 9.0% | 6.0% | 5.5% | 6.1% | 5.8% | 5.7% |
| ROA | 9.5% | 9.5% | 9.2% | 8.3% | 8.2% | 7.7% | 5.2% | 4.6% | 4.9% | 4.8% | 5.0% |
| ROIC | 14.9% | 14.9% | 13.1% | 12.2% | 12.0% | 9.8% | 6.8% | 5.9% | 6.0% | 6.0% | 6.1% |
| ROCE | 15.6% | 15.6% | 13.4% | 11.8% | 11.9% | 10.3% | 7.9% | 7.3% | 7.3% | 7.1% | 7.1% |
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 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.05 | 0.07 | — |
| Debt / EBITDA | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.07 | 0.10 | 0.12 | 0.30 | 0.50 | — |
| Net Debt / Equity | — | -0.22 | -0.16 | -0.25 | -0.24 | -0.20 | -0.13 | -0.04 | -0.00 | 0.00 | -0.09 |
| Net Debt / EBITDA | -1.05 | -1.05 | -0.89 | -1.50 | -1.38 | -1.21 | -0.89 | -0.27 | -0.02 | 0.03 | -0.59 |
| Debt / FCF | — | -1.30 | -1.07 | -1.55 | -1.44 | -1.18 | -0.95 | -0.31 | -0.03 | 0.03 | -0.56 |
| Interest Coverage | 243.44 | 243.44 | 187.84 | 111.90 | 113.59 | 91.04 | 60.33 | 11.90 | 19.57 | 27.79 | 52.55 |
Net cash position: cash ($354M) exceeds total debt ($8M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.16 | 2.16 | 1.62 | 2.05 | 2.11 | 2.19 | 1.95 | 1.13 | 1.03 | 1.11 | 1.35 |
| Quick Ratio | 2.16 | 2.16 | 1.62 | 2.05 | 2.11 | 2.18 | 1.94 | 1.12 | 1.03 | 1.10 | 1.35 |
| Cash Ratio | 1.60 | 1.60 | 1.09 | 1.58 | 1.63 | 1.60 | 1.28 | 0.50 | 0.39 | 0.52 | 0.71 |
| Asset Turnover | — | 0.40 | 0.40 | 0.39 | 0.37 | 0.36 | 0.33 | 0.35 | 0.42 | 0.38 | 0.41 |
| Inventory Turnover | 2527.50 | 2527.50 | 222.57 | — | 149.31 | 117.29 | 209.58 | 208.57 | 789.41 | 517.92 | 335.63 |
| Days Sales Outstanding | — | 44.42 | 39.74 | 40.62 | 33.93 | 35.84 | 54.47 | 47.52 | 47.52 | 49.13 | 52.14 |
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 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.6% | 2.6% | 1.4% | 1.5% | 1.6% | 1.4% | 1.0% | 1.0% | 1.3% | 1.2% | 1.4% |
| FCF Yield | 4.2% | 4.1% | 2.1% | 2.7% | 3.0% | 2.7% | 2.4% | 2.7% | 3.0% | 3.1% | 4.0% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $88M | $87M | $87M | $86M | $86M | $86M | $83M | $78M | $77M | $77M |
Serial acquisition integration fatigue
According to current market data, DSGX trades at a forward P/E of 37.81, a valuation that appears to command a premium over broader application software peers, likely reflecting investor confidence in the company's defensive, regulatory-driven revenue streams and its established position as a critical logistics infrastructure provider.
The current P/E multiple suggests that the market is pricing in sustained, high-quality growth rather than cyclical volatility. Investors should monitor whether this premium remains justified if global trade volumes face significant headwinds, as the valuation implies a high degree of resilience that may be tested in a prolonged downturn.
Based on reported figures, DSGX's ROIC has remained in the low single digits, specifically 3.9% in 2027Q1, which appears to be a function of the significant goodwill accumulated through its aggressive 'string of pearls' acquisition strategy rather than a lack of operational profitability in the core business.
While the headline ROIC appears modest, it is important to distinguish between the returns on the underlying software platform and the accounting impact of frequent acquisitions. The company's ability to maintain high operating margins suggests that the core business is highly efficient, even if the consolidated return metrics are temporarily dampened by the purchase price of acquired assets.
As reported in recent financial statements, the company's cash conversion cycle has remained tight, with a 2027Q1 figure of 13 days, indicating that Descartes maintains strong leverage over its billing processes and effectively manages its working capital despite the complexity of integrating diverse, newly acquired business units.
The consistent DSO of approximately 40 days suggests that the company's customer base remains stable and creditworthy, which is critical for a subscription-based model. This efficiency in collecting receivables provides the necessary liquidity to fund ongoing operations and opportunistic acquisitions without the need for external financing.
According to the latest quarterly filings, DSGX maintains a debt-to-equity ratio of 0.00, a position that provides the company with significant financial flexibility and insulates it from the interest rate sensitivity that currently plagues more leveraged entities within the broader technology and logistics software sectors.
The near-zero debt profile is a strategic advantage that allows management to pursue acquisitions during market dislocations without the burden of debt service obligations. This conservative capital structure appears to be a deliberate choice to prioritize long-term stability over the potential short-term gains of financial leverage.
Investors frequently misapply traditional freight-based valuation metrics to DSGX, failing to recognize that the company functions as a regulatory data gatekeeper rather than a cyclical logistics service provider, which obscures the true stickiness and defensive nature of its recurring, compliance-linked revenue streams.
By benchmarking Descartes against freight forwarders or logistics operators, the market may be underestimating the switching costs associated with its regulatory software. A more appropriate framework would involve evaluating the company as a high-margin data utility, where the value is derived from the legal necessity of its platform rather than the volume of goods moved.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying DSGX stock.
The Descartes Systems Group Inc.'s current P/E ratio is 38.3x. The historical average is 58.3x. This places it at the 19th percentile of its historical range.
The Descartes Systems Group Inc.'s current EV/EBITDA is 18.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.1x.
The Descartes Systems Group Inc.'s return on equity (ROE) is 11.2%. The historical average is -5.2%.
Based on historical data, The Descartes Systems Group Inc. is trading at a P/E of 38.3x. This is at the 19th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The Descartes Systems Group Inc. has 65.9% gross margin and 32.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
The Descartes Systems Group Inc.'s Debt/EBITDA ratio is 0.0x, indicating low leverage. A ratio below 2x is generally considered financially healthy.