Latest Ratios: P/E Ratio 28.9x · EV/EBITDA 35.3x · ROE 21.5%. (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 | $8.6B | $5.5B | $3.3B | $2.7B | $1.9B | $2.0B | $2.1B | $2.1B | $1.8B | $1.6B | $1.2B |
| Enterprise Value | $8.8B | $5.6B | $3.4B | $2.8B | $2.0B | $2.1B | $2.1B | $2.3B | $2.0B | $1.8B | $1.3B |
| P/E Ratio → | 28.86 | 18.28 | 32.74 | 29.17 | 23.24 | 31.82 | 91.55 | 25.58 | 19.22 | 28.96 | 26.23 |
| P/S Ratio | 7.88 | 4.99 | 3.63 | 3.16 | 2.23 | 2.82 | 2.88 | 2.86 | 2.59 | 2.27 | 2.11 |
| P/B Ratio | 5.60 | 3.55 | 2.70 | 2.39 | 1.83 | 1.98 | 2.20 | 2.51 | 2.34 | 2.32 | 1.96 |
| P/FCF | 45.50 | 28.82 | 38.20 | 57.56 | 21.21 | 23.04 | 51.17 | 28.62 | 25.91 | 54.47 | 23.47 |
| P/OCF | 35.69 | 22.61 | 26.16 | 35.15 | 14.15 | 16.40 | 25.59 | 19.75 | 19.01 | 23.14 | 16.32 |
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 | — | 5.11 | 3.73 | 3.27 | 2.33 | 3.00 | 2.92 | 3.17 | 2.87 | 2.61 | 2.21 |
| EV / EBITDA | 35.32 | 22.56 | 17.16 | 16.62 | 12.52 | 17.29 | 25.24 | 16.11 | 15.42 | 15.38 | 12.48 |
| EV / EBIT | 50.62 | 32.87 | 23.45 | 23.50 | 17.92 | 25.87 | 49.43 | 21.71 | 21.84 | 21.10 | 18.09 |
| EV / FCF | — | 29.50 | 39.24 | 59.61 | 22.10 | 24.47 | 51.81 | 31.72 | 28.68 | 62.49 | 24.57 |
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 | 42.1% | 42.1% | 42.3% | 41.3% | 38.7% | 37.8% | 37.3% | 39.7% | 38.6% | 36.3% | 38.6% |
| Operating Margin | 15.8% | 15.8% | 16.1% | 14.1% | 12.9% | 11.5% | — | 14.7% | 13.7% | 12.3% | 13.6% |
| Net Profit Margin | 27.3% | 27.3% | 11.1% | 10.8% | 9.6% | 8.9% | 13.6% | 11.2% | 13.5% | 7.8% | 8.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 21.5% | 21.5% | 8.6% | 8.5% | 8.0% | 6.4% | 11.1% | 10.2% | 12.9% | 8.3% | 7.7% |
| ROA | 14.1% | 14.1% | 5.8% | 5.5% | 5.1% | 4.3% | 7.0% | 5.9% | 7.3% | 4.8% | 5.0% |
| ROIC | 8.7% | 8.7% | 8.7% | 7.7% | 7.3% | 5.8% | — | 8.0% | 7.6% | 8.0% | 9.2% |
| ROCE | 10.2% | 10.2% | 10.3% | 8.9% | 8.4% | 6.8% | — | 9.4% | 8.8% | 8.9% | 10.1% |
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 | 0.15 | 0.15 | 0.13 | 0.12 | 0.17 | 0.18 | 0.08 | 0.35 | 0.29 | 0.41 | 0.18 |
| Debt / EBITDA | 0.93 | 0.93 | 0.79 | 0.82 | 1.12 | 1.47 | 0.94 | 2.00 | 1.73 | 2.36 | 1.09 |
| Net Debt / Equity | — | 0.08 | 0.07 | 0.09 | 0.08 | 0.12 | 0.03 | 0.27 | 0.25 | 0.34 | 0.09 |
| Net Debt / EBITDA | 0.52 | 0.52 | 0.45 | 0.57 | 0.50 | 1.01 | 0.31 | 1.57 | 1.49 | 1.97 | 0.56 |
| Debt / FCF | — | 0.68 | 1.04 | 2.06 | 0.89 | 1.44 | 0.65 | 3.09 | 2.77 | 8.02 | 1.09 |
| Interest Coverage | 9.73 | 9.73 | 9.59 | 13.59 | 22.94 | 36.77 | 6.41 | 13.10 | 10.22 | 18.51 | 53.31 |
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 | 1.35 | 1.35 | 1.91 | 1.85 | 1.80 | 1.70 | 1.74 | 1.97 | 1.97 | 2.01 | 2.05 |
| Quick Ratio | 0.93 | 0.93 | 1.35 | 1.26 | 1.29 | 1.16 | 1.21 | 1.46 | 1.30 | 1.38 | 1.38 |
| Cash Ratio | 0.20 | 0.20 | 0.19 | 0.13 | 0.31 | 0.20 | 0.21 | 0.25 | 0.15 | 0.23 | 0.34 |
| Asset Turnover | — | 0.45 | 0.50 | 0.51 | 0.52 | 0.45 | 0.53 | 0.50 | 0.54 | 0.54 | 0.58 |
| Inventory Turnover | 2.91 | 2.91 | 2.71 | 2.73 | 3.24 | 3.02 | 3.39 | 3.40 | 3.10 | 3.51 | 3.32 |
| Days Sales Outstanding | — | 114.72 | 114.69 | 143.81 | 123.35 | 122.50 | 119.12 | 135.20 | 115.74 | 110.64 | 95.96 |
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 | 0.1% | 0.2% | 0.2% | 0.3% | 0.4% | 0.4% | 0.4% | 0.4% | 0.5% | 0.5% | 0.7% |
| Payout Ratio | 2.8% | 2.8% | 8.1% | 8.9% | 10.0% | 13.1% | 8.4% | 10.2% | 9.0% | 15.4% | 18.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.5% | 5.5% | 3.1% | 3.4% | 4.3% | 3.1% | 1.1% | 3.9% | 5.2% | 3.5% | 3.8% |
| FCF Yield | 2.2% | 3.5% | 2.6% | 1.7% | 4.7% | 4.3% | 2.0% | 3.5% | 3.9% | 1.8% | 4.3% |
| Buyback Yield | 0.0% | 0.0% | 0.2% | 0.5% | 1.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.4% |
| Total Shareholder Yield | 0.1% | 0.2% | 0.5% | 0.8% | 1.5% | 0.4% | 0.4% | 0.4% | 0.5% | 0.5% | 1.0% |
| Shares Outstanding | — | $26M | $26M | $26M | $26M | $26M | $26M | $26M | $26M | $26M | $26M |
Acquisition-Driven Goodwill Concentration
Based on current market data, ESE trades at a forward P/E of 41.49, which appears to price in significant growth expectations that may be difficult to reconcile with the company's historical organic performance and the inherent volatility of its project-based RF shielding segment.
The valuation premium relative to the PEG ratio of 0.44 suggests that the market may be mispricing the company's earnings growth potential or failing to account for the lumpy nature of its defense-heavy revenue streams. Investors should monitor whether the current EV/EBITDA of 36.00 is justified by the recurring diagnostic software revenue or if it reflects an over-optimistic view of the company's ability to scale its decentralized industrial segments.
According to reported financial statements, ESE's ROIC has remained stagnant, hovering between 1.3% and 2.9% over the last ten quarters, indicating that the company's aggressive inorganic growth strategy has yet to yield meaningful improvements in the efficiency of its invested capital base.
The persistent gap between the company's ROIC and its cost of capital warrants further investigation into the quality of recent bolt-on acquisitions. It appears that the integration of these assets is diluting overall returns, suggesting that management's capital allocation strategy may be prioritizing scale over the compounding of shareholder value.
As reported in recent quarterly filings, ESE's cash conversion cycle has remained elevated, peaking at 226 days in 2025Q1, which highlights significant inefficiencies in managing inventory and receivables compared to more streamlined industrial peers in the aerospace and utility sectors.
The high days sales outstanding (DSO) and days inventory outstanding (DIO) suggest that the company's reliance on long-cycle defense and utility contracts creates a structural drag on cash flow. This extended cycle appears to be a primary driver of the observed volatility in free cash flow, as the company remains heavily dependent on the timing of milestone-based payments.
Based on ESE's reported figures, the company maintains a robust balance sheet with a debt-to-equity ratio of 0.13 as of 2026Q2, providing a significant buffer that allows for continued M&A activity despite the cyclical pressures inherent in its primary end-markets.
The interest coverage ratio, which has remained comfortably above 10x in most periods, indicates that debt service is not a material risk to the company's operational stability. This conservative capital structure appears to be a deliberate choice by management to maintain the flexibility required to navigate the lumpy revenue recognition cycles of its RF shielding and defense segments.
Investors frequently misapply the traditional P/E ratio to ESE, failing to account for the significant non-operating gains and acquisition-related amortization that distort the company's reported net income and obscure its true underlying earning power.
Because ESE's net margin is often inflated by one-time tax benefits or non-recurring items, the P/E ratio provides a misleading picture of the company's operational health. A more appropriate metric for this business model would be an adjusted EV/EBITDA or a cash-flow-based valuation, which would better reflect the recurring nature of the Utility Solutions Group and the project-based volatility of the RF shielding segment.
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 ESE stock.
ESCO Technologies Inc.'s current P/E ratio is 28.9x. The historical average is 24.4x. This places it at the 75th percentile of its historical range.
ESCO Technologies Inc.'s current EV/EBITDA is 35.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.0x.
ESCO Technologies Inc.'s return on equity (ROE) is 21.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 8.1%.
Based on historical data, ESCO Technologies Inc. is trading at a P/E of 28.9x. This is at the 75th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
ESCO Technologies Inc.'s current dividend yield is 0.10% with a payout ratio of 2.8%.
ESCO Technologies Inc. has 42.1% gross margin and 15.8% operating margin. Operating margin between 10-20% is typical for established companies.
ESCO Technologies Inc.'s Debt/EBITDA ratio is 0.9x, indicating low leverage. A ratio below 2x is generally considered financially healthy.