Latest Ratios: P/E Ratio 84.3x · EV/EBITDA 42.8x · ROE 6.2%. (2017–2026 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 | $13.3B | $11.1B | $14.3B | $13.9B | $12.3B | $13.7B | $13.8B | $6.3B | — | — | — |
| Enterprise Value | $12.3B | $10.1B | $13.4B | $13.2B | $11.9B | $13.6B | $13.9B | $6.6B | — | — | — |
| P/E Ratio → | 84.30 | 68.48 | 29.65 | 89.31 | 114.32 | 261.67 | 185.54 | — | — | — | — |
| P/S Ratio | 6.57 | 5.48 | 8.43 | 9.72 | 10.65 | 14.74 | 19.65 | 11.57 | — | — | — |
| P/B Ratio | 5.21 | 4.23 | 5.46 | 6.90 | 7.69 | 10.50 | 12.41 | 6.54 | — | — | — |
| P/FCF | 25.16 | 20.97 | 33.04 | 39.52 | 37.00 | 58.75 | 66.98 | — | — | — | — |
| P/OCF | 23.72 | 19.76 | 31.16 | 36.76 | 34.76 | 54.61 | 62.70 | — | — | — | — |
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 | — | 5.01 | 7.87 | 9.22 | 10.23 | 14.61 | 19.81 | 12.12 | — | — | — |
| EV / EBITDA | 42.83 | 35.15 | 58.77 | 71.94 | 80.42 | 98.26 | 91.17 | — | — | — | — |
| EV / EBIT | 46.74 | 38.35 | 74.53 | 102.72 | 127.74 | 166.99 | 151.38 | — | — | — | — |
| EV / FCF | — | 19.20 | 30.86 | 37.51 | 35.56 | 58.22 | 67.53 | — | — | — | — |
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 | 81.6% | 81.6% | 81.2% | 81.4% | 80.8% | 81.4% | 81.8% | 76.4% | 75.2% | 75.7% | 74.9% |
| Operating Margin | 13.1% | 13.1% | 10.6% | 9.0% | 8.0% | 8.7% | 13.1% | -31.5% | -16.9% | -5.5% | 3.1% |
| Net Profit Margin | 8.1% | 8.1% | 28.5% | 10.8% | 9.3% | 5.6% | 10.8% | -75.8% | -27.0% | 2.3% | 0.2% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.2% | 6.2% | 20.9% | 8.5% | 7.4% | 4.3% | 7.3% | -143.8% | — | — | — |
| ROA | 3.8% | 3.8% | 12.8% | 5.0% | 4.1% | 2.2% | 3.5% | -21.5% | -6.3% | 0.5% | 0.0% |
| ROIC | 11.8% | 11.8% | 9.0% | 7.9% | 6.0% | 5.1% | 5.5% | -10.6% | -4.2% | -3.0% | — |
| ROCE | 9.4% | 9.4% | 7.3% | 6.6% | 5.5% | 5.0% | 5.8% | -14.2% | -19.2% | — | — |
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 | 0.06 | 0.06 | 0.03 | 0.03 | 0.05 | 0.26 | 0.39 | 0.53 | — | — | — |
| Debt / EBITDA | 0.57 | 0.57 | 0.33 | 0.38 | 0.51 | 2.45 | 2.88 | — | 218.59 | 28.89 | — |
| Net Debt / Equity | — | -0.36 | -0.36 | -0.35 | -0.30 | -0.10 | 0.10 | 0.31 | — | — | — |
| Net Debt / EBITDA | -3.24 | -3.24 | -4.14 | -3.87 | -3.26 | -0.90 | 0.75 | — | 211.66 | 27.61 | -0.59 |
| Debt / FCF | — | -1.77 | -2.17 | -2.02 | -1.44 | -0.53 | 0.56 | — | 11.36 | 16.12 | -0.72 |
| Interest Coverage | — | — | — | — | 27.23 | 7.98 | 6.48 | -3.81 | -1.00 | -0.47 | 0.36 |
Net cash position: cash ($1.1B) exceeds total debt ($164M)
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 | 1.35 | 1.35 | 1.40 | 1.28 | 1.08 | 1.10 | 1.05 | 1.00 | 0.22 | 0.12 | 0.10 |
| Quick Ratio | 1.35 | 1.35 | 1.40 | 1.28 | 1.08 | 1.10 | 1.05 | 1.00 | 0.22 | 0.12 | 0.10 |
| Cash Ratio | 0.75 | 0.75 | 0.81 | 0.66 | 0.54 | 0.53 | 0.50 | 0.43 | 0.05 | 0.04 | 0.03 |
| Asset Turnover | — | 0.46 | 0.41 | 0.42 | 0.42 | 0.37 | 0.31 | 0.27 | 0.24 | 0.21 | 0.21 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 128.43 | 136.66 | 156.55 | 139.42 | 137.71 | 125.60 | 105.03 | 97.76 | 125.15 | 102.91 |
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 | 1.2% | 1.5% | 3.4% | 1.1% | 0.9% | 0.4% | 0.5% | — | — | — | — |
| FCF Yield | 4.0% | 4.8% | 3.0% | 2.5% | 2.7% | 1.7% | 1.5% | — | — | — | — |
| Buyback Yield | 3.6% | 4.3% | 1.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 3.6% | 4.3% | 1.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Shares Outstanding | — | $299M | $304M | $299M | $292M | $291M | $287M | $265M | $276M | $276M | $280M |
Competitive consolidation and pricing
According to current market data, Dynatrace trades at a forward P/E of 22.27 and an EV/EBITDA of 26.92, suggesting that investors are pricing in sustained enterprise adoption despite the broader sector's ongoing transition toward more aggressive, consumption-based pricing models and increased competitive intensity from consolidated incumbents.
The current valuation multiples appear to reflect a premium for the company's profitability profile relative to high-burn observability peers. However, the PEG ratio of 5.10 suggests that the market may be anticipating a deceleration in growth, warranting caution regarding whether the current price adequately accounts for potential margin compression from competitive pricing pressures.
Based on reported financial figures, Dynatrace's ROIC has remained in a narrow range between 1.4% and 3.4% over the last ten quarters, indicating that the company is still in a phase of heavy reinvestment rather than generating significant excess returns on its invested capital base.
The modest ROIC levels suggest that the firm's strategic pivot toward the 'Grail' data lakehouse and security modules is consuming substantial capital without yet yielding a commensurate increase in returns. Investors should monitor whether these investments eventually drive a structural improvement in capital efficiency or if they continue to act as a drag on overall profitability metrics.
As reported in recent quarterly filings, the company's DSO has fluctuated significantly, reaching as high as 117 days in 2024Q4 before moderating to 100 days in 2026Q4, which highlights the inherent variability in enterprise billing cycles and the impact of large, multi-year contract renewals on cash conversion.
The inconsistent DSO trends suggest that while the subscription model is inherently recurring, the timing of cash collections remains sensitive to enterprise procurement patterns. This volatility in working capital efficiency may complicate short-term liquidity planning and requires a disciplined approach to managing accounts receivable to ensure consistent cash flow generation.
According to the latest balance sheet data, Dynatrace maintains a current ratio of 1.35 and a negligible debt-to-equity ratio of 0.06%, providing a robust liquidity buffer that effectively insulates the firm from interest rate shocks and supports its ongoing strategic investments in R&D and market expansion.
The company's strong cash position, exceeding $1 billion, serves as a critical defensive asset in an environment of sector consolidation. This liquidity profile allows management to maintain operational continuity even if sales cycles lengthen, though it also raises questions regarding the potential for more aggressive capital allocation to drive future growth.
The P/E ratio is frequently misapplied to Dynatrace, as it obscures the significant impact of stock-based compensation and the heavy reinvestment into the 'Grail' platform, which artificially depresses GAAP earnings and fails to capture the underlying cash-generating potential of the core subscription business model.
Analysts should instead focus on free cash flow margins and adjusted operating metrics to better understand the company's true earning power. Relying solely on P/E multiples risks misinterpreting the firm's profitability trajectory, as it ignores the non-cash expenses that are essential for talent retention in the highly competitive observability software market.
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Quick answers to the most common questions about buying DT stock.
Dynatrace, Inc.'s current P/E ratio is 84.3x. The historical average is 97.5x. This places it at the 40th percentile of its historical range.
Dynatrace, Inc.'s current EV/EBITDA is 42.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 72.6x.
Dynatrace, Inc.'s return on equity (ROE) is 6.2%. The historical average is -12.7%.
Based on historical data, Dynatrace, Inc. is trading at a P/E of 84.3x. This is at the 40th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Dynatrace, Inc. has 81.6% gross margin and 13.1% operating margin. Operating margin between 10-20% is typical for established companies.
Dynatrace, Inc.'s Debt/EBITDA ratio is 0.6x, indicating low leverage. A ratio below 2x is generally considered financially healthy.