Latest Ratios: P/E Ratio 29.1x · EV/EBITDA 9.8x · ROE 8.8%. (2019–2025 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 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $319M | $150M | $306M | $645M | $500M | $1.1B | — | — |
| Enterprise Value | $625M | $456M | $637M | $972M | $836M | $1.2B | — | — |
| P/E Ratio → | 29.10 | 17.20 | 29.68 | 76.47 | 69.17 | — | — | — |
| P/S Ratio | 1.54 | 0.72 | 1.41 | 2.92 | 2.41 | 6.05 | — | — |
| P/B Ratio | 2.41 | 1.43 | 3.34 | 5.61 | 3.84 | 3.17 | — | — |
| P/FCF | 6.37 | 2.99 | 5.47 | 11.76 | 11.33 | 32.59 | — | — |
| P/OCF | 6.02 | 2.82 | 5.42 | 11.59 | 11.27 | 26.13 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.21 | 2.94 | 4.40 | 4.03 | 6.80 | — | — |
| EV / EBITDA | 9.84 | 7.17 | 9.36 | 14.95 | 13.82 | 27.07 | — | — |
| EV / EBIT | 14.50 | 10.62 | 15.04 | 21.86 | 20.95 | 49.87 | — | — |
| EV / FCF | — | 9.10 | 11.38 | 17.74 | 18.96 | 36.67 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 73.9% | 73.9% | 73.6% | 71.7% | 71.4% | 73.8% | 65.7% | 73.5% |
| Operating Margin | 20.9% | 20.9% | 22.0% | 20.1% | 19.2% | 13.7% | -3.1% | 7.6% |
| Net Profit Margin | 4.2% | 4.2% | 4.8% | 3.9% | 3.5% | 3.9% | -20.8% | -15.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | 8.8% | 8.8% | 10.1% | 7.1% | 3.1% | 2.1% | -6.8% | -7.8% |
| ROA | 1.2% | 1.2% | 1.5% | 1.2% | 1.1% | 1.1% | -3.6% | -4.2% |
| ROIC | 7.8% | 7.8% | 8.3% | 7.3% | 6.3% | 3.6% | -0.4% | — |
| ROCE | 6.4% | 6.4% | 7.0% | 6.4% | 6.3% | 4.2% | -0.6% | 2.1% |
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 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 3.65 | 3.65 | 4.16 | 3.31 | 2.92 | 0.52 | 0.83 | 0.72 |
| Debt / EBITDA | 6.02 | 6.02 | 5.60 | 5.85 | 6.29 | 3.97 | 16.22 | 8.28 |
| Net Debt / Equity | — | 2.92 | 3.61 | 2.85 | 2.58 | 0.40 | 0.72 | 0.68 |
| Net Debt / EBITDA | 4.82 | 4.82 | 4.87 | 5.04 | 5.56 | 3.01 | 13.98 | 7.90 |
| Debt / FCF | — | 6.11 | 5.91 | 5.98 | 7.62 | 4.07 | — | — |
| Interest Coverage | 1.63 | 1.63 | 1.66 | 1.67 | 1.69 | 1.20 | -0.12 | 0.75 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.70 | 2.70 | 2.43 | 2.52 | 2.63 | 2.36 | 3.08 | 1.40 |
| Quick Ratio | 2.29 | 2.29 | 1.90 | 1.98 | 1.93 | 1.75 | 2.42 | 0.67 |
| Cash Ratio | 1.76 | 1.76 | 1.38 | 1.39 | 1.35 | 1.35 | 1.99 | 0.34 |
| Asset Turnover | — | 0.28 | 0.31 | 0.30 | 0.29 | 0.29 | 0.17 | 0.27 |
| Inventory Turnover | 3.03 | 3.03 | 3.01 | 3.02 | 2.57 | 2.41 | 2.89 | 1.86 |
| Days Sales Outstanding | — | 19.36 | 12.26 | 15.28 | 12.20 | 13.60 | 17.90 | 16.07 |
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 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.0% | 0.0% | 0.3% | 0.4% | 41.1% | — | — | — |
| Payout Ratio | 0.1% | 0.1% | 7.5% | 32.7% | 2808.5% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.4% | 5.8% | 3.4% | 1.3% | 1.4% | — | — | — |
| FCF Yield | 15.7% | 33.5% | 18.3% | 8.5% | 8.8% | 3.1% | — | — |
| Buyback Yield | 1.9% | 4.1% | 13.1% | 4.6% | 2.0% | 12.9% | — | — |
| Total Shareholder Yield | 1.9% | 4.1% | 13.4% | 5.1% | 43.1% | 12.9% | — | — |
| Shares Outstanding | — | $43M | $47M | $50M | $40M | $37M | $31M | $31M |
High leverage and contraction
According to current market data, EWCZ trades at a forward P/E of 8.47, which appears to discount the company's recent top-line contraction of 4.74% and suggests that investors are pricing in a significant risk premium relative to historical valuation levels for this franchisor.
The divergence between the TTM P/E of 29.10 and the forward P/E of 8.47 implies that the market anticipates a sharp recovery in earnings or is heavily discounting the current depressed profitability. Given the persistent revenue decline, this valuation compression suggests that the market is skeptical of the company's ability to return to historical growth trajectories without further margin degradation.
Based on reported financial statements, EWCZ's ROIC has struggled to gain momentum, hovering near 3.0% in 2026Q1, which indicates that the company is failing to generate returns on invested capital that meaningfully exceed its cost of capital in the current operating environment.
The low ROIC trend over the last ten quarters highlights a disconnect between the asset-light business model and actual capital productivity. This suggests that the company's heavy debt burden and corporate overhead are effectively neutralizing the benefits of its high-margin franchise royalty stream, warranting further investigation into the efficiency of recent capital allocation.
As reported in recent filings, the company's cash conversion cycle has exhibited significant volatility, reaching 117 days in 2024Q4, which suggests that EWCZ faces challenges in managing its working capital efficiency compared to its historical performance and broader industry standards for franchised service models.
The fluctuation in DSO and DIO metrics indicates potential friction in the collection of franchise royalties or inventory management within the proprietary product segment. Investors should monitor whether these inefficiencies are temporary operational hurdles or structural issues stemming from the current decline in system-wide sales volume.
According to recent SEC filings, EWCZ's debt-to-equity ratio reached 3.65x in 2025Q4, a level that appears to limit the company's strategic flexibility and places significant pressure on interest coverage, which has trended downward to 1.36x as of 2026Q1.
The high leverage profile, combined with a shrinking equity base, suggests that the company is in a vulnerable position should the current revenue contraction persist. The declining interest coverage ratio indicates that the margin of safety for debt service is narrowing, which may restrict the company's ability to support its franchise network during periods of economic stress.
Market participants frequently misapply system-wide sales as a direct proxy for EWCZ's GAAP revenue, which obscures the reality that the company only captures a small royalty percentage, leading to an overestimation of the firm's actual scale and its sensitivity to consumer-level demand fluctuations.
Analysts should instead focus on the royalty revenue growth and the 'Wax Pass' penetration rate, as these metrics more accurately reflect the company's actual cash-generating capacity. Relying on system-wide sales figures risks ignoring the 'leakage' in the income statement caused by corporate overhead and interest expenses, which are the primary drivers of the company's current net margin compression.
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Quick answers to the most common questions about buying EWCZ stock.
European Wax Center, Inc.'s current P/E ratio is 29.1x. The historical average is 48.1x. This places it at the 25th percentile of its historical range.
European Wax Center, Inc.'s current EV/EBITDA is 9.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.5x.
European Wax Center, Inc.'s return on equity (ROE) is 8.8%. The historical average is 2.4%.
Based on historical data, European Wax Center, Inc. is trading at a P/E of 29.1x. This is at the 25th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
European Wax Center, Inc.'s current dividend yield is 0.00% with a payout ratio of 0.1%.
European Wax Center, Inc. has 73.9% gross margin and 20.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
European Wax Center, Inc.'s Debt/EBITDA ratio is 6.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.