Latest Ratios: P/E Ratio -52.4x · EV/EBITDA 16.9x · ROE -3.7%. (2016–2025 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 | $12.3B | $11.2B | $6.0B | $7.3B | $6.0B | $13.8B | $13.5B | $10.9B | $9.9B | — | — |
| Enterprise Value | $15.8B | $14.7B | $9.9B | $12.8B | $11.5B | $19.5B | $19.2B | $12.9B | $11.9B | — | — |
| P/E Ratio → | -52.43 | — | 17.81 | — | — | — | — | 163.61 | 112.61 | — | — |
| P/S Ratio | 2.61 | 2.38 | 1.36 | 1.66 | 1.35 | 2.90 | 4.14 | 3.55 | 3.23 | — | — |
| P/B Ratio | 1.87 | 1.72 | 0.99 | 1.18 | 0.82 | 1.84 | 1.60 | 1.97 | 1.90 | — | — |
| P/FCF | 43.33 | 39.55 | 15.29 | 62.69 | 22.27 | 48.35 | — | 408.44 | 28.04 | — | — |
| P/OCF | 21.98 | 20.06 | 11.13 | 27.07 | 13.20 | 28.63 | — | 48.66 | 20.30 | — | — |
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 | — | 3.12 | 2.22 | 2.89 | 2.60 | 4.09 | 5.86 | 4.21 | 3.88 | — | — |
| EV / EBITDA | 16.93 | 15.78 | 10.82 | 12.51 | 10.75 | 19.13 | 43.56 | 18.88 | 19.50 | — | — |
| EV / EBIT | 62.61 | — | 11.94 | — | 62.27 | — | — | 82.28 | 82.73 | — | — |
| EV / FCF | — | 51.78 | 25.06 | 109.04 | 42.75 | 68.21 | — | 484.13 | 33.70 | — | — |
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 | 43.5% | 43.5% | 43.0% | 43.9% | 44.7% | 43.6% | 38.1% | 45.6% | 42.2% | 40.6% | 45.8% |
| Operating Margin | 5.3% | 5.3% | 5.7% | 7.4% | 8.7% | 6.4% | -2.3% | 12.0% | 10.2% | 4.9% | 9.7% |
| Net Profit Margin | -4.9% | -4.9% | 7.6% | -27.9% | -1.8% | -10.1% | -17.1% | 2.2% | 2.8% | -10.8% | -1.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -3.7% | -3.7% | 5.5% | -18.2% | -1.1% | -6.0% | -8.0% | 1.3% | 1.3% | -4.2% | -0.7% |
| ROA | -1.8% | -1.8% | 2.5% | -8.2% | -0.5% | -2.8% | -4.2% | 0.8% | 1.0% | -3.6% | -0.6% |
| ROIC | 1.9% | 1.9% | 1.7% | 2.0% | 2.2% | 1.7% | -0.5% | 3.8% | 3.2% | 1.5% | 3.1% |
| ROCE | 2.2% | 2.2% | 2.1% | 2.4% | 2.7% | 2.0% | -0.6% | 4.6% | 3.9% | 1.8% | 3.8% |
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 | 0.61 | 0.61 | 0.71 | 0.93 | 0.80 | 0.84 | 0.72 | 0.42 | 0.48 | — | — |
| Debt / EBITDA | 4.31 | 4.31 | 4.73 | 5.66 | 5.47 | 6.20 | 13.92 | 3.44 | 4.05 | — | — |
| Net Debt / Equity | — | 0.53 | 0.63 | 0.87 | 0.75 | 0.76 | 0.66 | 0.36 | 0.38 | -0.04 | -0.04 |
| Net Debt / EBITDA | 3.73 | 3.73 | 4.22 | 5.32 | 5.15 | 5.57 | 12.80 | 2.95 | 3.28 | -0.70 | -0.48 |
| Debt / FCF | — | 12.23 | 9.78 | 46.34 | 20.49 | 19.86 | — | 75.69 | 5.66 | -4.30 | -5.68 |
| Interest Coverage | -0.02 | -0.02 | 2.44 | -3.31 | 0.72 | -1.16 | -3.31 | 1.99 | 4.85 | — | — |
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 | 2.17 | 2.17 | 2.44 | 2.75 | 1.93 | 1.99 | 1.65 | 2.90 | 2.58 | 3.36 | 3.15 |
| Quick Ratio | 1.08 | 1.08 | 1.25 | 1.35 | 1.02 | 1.16 | 0.89 | 1.62 | 1.55 | 1.68 | 1.73 |
| Cash Ratio | 0.34 | 0.34 | 0.36 | 0.28 | 0.20 | 0.39 | 0.24 | 0.41 | 0.49 | 0.51 | 0.42 |
| Asset Turnover | — | 0.35 | 0.35 | 0.31 | 0.28 | 0.29 | 0.19 | 0.34 | 0.34 | 0.32 | 0.36 |
| Inventory Turnover | 1.53 | 1.53 | 1.61 | 1.43 | 1.59 | 1.96 | 1.28 | 1.59 | 1.76 | 1.61 | 1.80 |
| Days Sales Outstanding | — | 72.77 | 72.85 | 83.46 | 82.91 | 78.76 | 120.09 | 105.77 | 84.43 | 76.04 | 79.01 |
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 | — | — | 5.6% | — | — | — | — | 0.6% | 0.9% | — | — |
| FCF Yield | 2.3% | 2.5% | 6.5% | 1.6% | 4.5% | 2.1% | — | 0.2% | 3.6% | — | — |
| Buyback Yield | 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% | — | — |
| Shares Outstanding | — | $496M | $497M | $492M | $488M | $487M | $441M | $370M | $314M | $356M | $356M |
High debt leverage sensitivity
Based on reported figures, Elanco trades at a forward P/E of 23.05, which suggests the market is pricing in a significant recovery inflection that remains contingent on the successful commercialization of its new innovation pipeline rather than current earnings, which are currently distorted by legacy acquisition costs.
The valuation multiple appears to reflect a 'turnaround' discount when compared to the premium multiples commanded by peers like Zoetis, which benefit from superior margin stability. Investors should monitor whether the current forward multiple is justified by the projected revenue contribution from recent product launches or if it remains vulnerable to further competitive erosion in the parasiticide market.
As reported in financial statements, Elanco's ROIC has struggled to gain traction, hovering near 2.3% in 2026Q1, which indicates that the company is currently failing to generate returns on invested capital that exceed its cost of capital, largely due to the heavy amortization of past acquisition-related assets.
The persistent gap between ROIC and historical industry benchmarks suggests that the company's capital allocation strategy has yet to yield the expected synergies from the Bayer integration. This trend warrants further investigation into whether the recent divestiture of lower-margin assets will be sufficient to drive a meaningful improvement in long-term capital compounding.
According to recent quarterly data, Elanco's cash conversion cycle remains elevated at 277 days as of 2026Q1, reflecting significant inefficiencies in inventory management and a reliance on extended payment terms that contrast sharply with the leaner operational profiles observed in more specialized animal health competitors.
The high days inventory outstanding (DIO) suggests that the company may be carrying excess stock to mitigate supply chain risks, which ties up liquidity that could otherwise be used for deleveraging. Investors should monitor whether management can optimize these working capital components to improve free cash flow conversion without sacrificing market share in the retail channel.
Based on the provided quarterly data, Elanco's interest coverage ratio of 5.39 in 2026Q1 shows improvement, yet the company's debt-to-EBITDA ratio remains elevated, indicating that the balance sheet remains vulnerable to interest rate volatility and potential shocks to its core operating cash flow generation.
While the company has made progress in reducing its debt load, the reliance on debt financing to support its manufacturing footprint continues to limit financial flexibility. The current leverage profile suggests that any sustained downturn in the livestock protein cycle could disproportionately impact the company's ability to service its obligations.
As evidenced by the provided figures, the GAAP net margin is frequently misapplied as a proxy for operational health, obscuring the company's underlying cash-generating potential which is often masked by significant non-cash amortization charges stemming from the $7.6 billion Bayer Animal Health acquisition.
Analysts should prioritize Adjusted EBITDA or Free Cash Flow metrics to better assess the company's true earning power, as the GAAP net loss often fails to capture the cash-generative nature of the core brands. Relying solely on net income may lead to an overly pessimistic view of the company's ability to fund its R&D pipeline and manage its debt obligations.
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Quick answers to the most common questions about buying ELAN stock.
Elanco Animal Health Incorporated's current P/E ratio is -52.4x. The historical average is 98.0x.
Elanco Animal Health Incorporated's current EV/EBITDA is 16.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.9x.
Elanco Animal Health Incorporated's return on equity (ROE) is -3.7%. The historical average is -3.4%.
Based on historical data, Elanco Animal Health Incorporated is trading at a P/E of -52.4x. Compare with industry peers and growth rates for a complete picture.
Elanco Animal Health Incorporated has 43.5% gross margin and 5.3% operating margin.
Elanco Animal Health Incorporated's Debt/EBITDA ratio is 4.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.