Latest Ratios: P/E Ratio -555.5x · EV/EBITDA 116.1x · ROE -16.4%. (1998–2025 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 | $4.2B | $2.4B | $1.7B | $3.5B | $1.2B | $1.4B | $520M | $763M | $909M | $998M | $349M |
| Enterprise Value | $4.2B | $2.4B | $1.8B | $3.5B | $1.4B | $1.6B | $826M | $772M | $986M | $961M | $311M |
| P/E Ratio → | -555.50 | — | — | 44.91 | 27.03 | 734.21 | — | — | — | — | — |
| P/S Ratio | 3.69 | 2.08 | 1.56 | 2.65 | 1.07 | 1.41 | 0.55 | 0.77 | 0.92 | 1.67 | 0.66 |
| P/B Ratio | 63.22 | 36.22 | 68.78 | 29.82 | 13.18 | 26.16 | 96.33 | 6.58 | 8.07 | 9.36 | 3.87 |
| P/FCF | 33.04 | 18.66 | 46.54 | 14.79 | 10.56 | 11.19 | 25.22 | 9.28 | — | 20.43 | 13.96 |
| P/OCF | 27.67 | 15.62 | 31.34 | 13.97 | 9.29 | 9.86 | 14.49 | 7.27 | 47.74 | 16.84 | 11.51 |
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 | — | 2.08 | 1.64 | 2.68 | 1.22 | 1.57 | 0.87 | 0.78 | 1.00 | 1.61 | 0.59 |
| EV / EBITDA | 116.08 | 65.45 | 152.43 | 22.20 | 10.62 | 13.68 | 19.30 | 15.55 | 13.25 | 17.66 | 10.44 |
| EV / EBIT | 247.71 | 117.17 | — | 31.59 | 20.95 | 48.05 | — | — | — | 143.75 | — |
| EV / FCF | — | 18.59 | 49.04 | 14.96 | 12.07 | 12.46 | 40.06 | 9.39 | — | 19.66 | 12.41 |
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 | 62.2% | 62.2% | 56.3% | 57.3% | 56.3% | 56.8% | 53.4% | 54.4% | 53.5% | 53.9% | 48.0% |
| Operating Margin | 1.5% | 1.5% | -2.6% | 8.5% | 6.6% | 3.9% | -4.5% | -0.6% | 2.6% | 4.7% | -2.5% |
| Net Profit Margin | -0.7% | -0.7% | -7.7% | 5.9% | 4.0% | 0.2% | -13.4% | -2.6% | -4.8% | -1.4% | -6.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -16.4% | -16.4% | -121.0% | 75.4% | 61.1% | 6.5% | -209.0% | -22.6% | -42.6% | -8.7% | -32.8% |
| ROA | -0.7% | -0.7% | -7.9% | 7.1% | 4.3% | 0.2% | -14.6% | -3.4% | -7.5% | -2.0% | -7.9% |
| ROIC | 14.4% | 14.4% | -15.7% | 40.0% | 22.9% | 11.1% | -14.7% | -3.0% | 14.7% | 34.9% | -13.7% |
| ROCE | 3.1% | 3.1% | -5.3% | 19.7% | 13.0% | 6.9% | -8.7% | -1.5% | 7.9% | 14.4% | -7.5% |
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 | 3.41 | 3.41 | 9.89 | 2.36 | 4.04 | 7.52 | 92.58 | 1.54 | 1.75 | 0.87 | 0.62 |
| Debt / EBITDA | 6.18 | 6.18 | 20.81 | 1.74 | 2.85 | 3.53 | 11.68 | 3.60 | 2.66 | 1.70 | 1.87 |
| Net Debt / Equity | — | -0.13 | 3.70 | 0.35 | 1.89 | 2.99 | 56.66 | 0.08 | 0.68 | -0.35 | -0.43 |
| Net Debt / EBITDA | -0.23 | -0.23 | 7.77 | 0.26 | 1.33 | 1.40 | 7.15 | 0.18 | 1.03 | -0.69 | -1.30 |
| Debt / FCF | — | -0.07 | 2.50 | 0.17 | 1.51 | 1.28 | 14.84 | 0.11 | — | -0.77 | -1.54 |
| Interest Coverage | 1.27 | 1.27 | -3.56 | 6.41 | 5.08 | 1.45 | -4.07 | -1.05 | -2.58 | 1.64 | -7.89 |
Net cash position: cash ($232M) exceeds total debt ($223M)
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 | 0.91 | 0.91 | 0.90 | 1.00 | 0.98 | 1.07 | 1.04 | 1.24 | 1.19 | 1.27 | 1.08 |
| Quick Ratio | 0.74 | 0.74 | 0.63 | 0.85 | 0.88 | 1.00 | 0.88 | 1.06 | 1.01 | 1.09 | 0.89 |
| Cash Ratio | 0.39 | 0.39 | 0.30 | 0.41 | 0.39 | 0.54 | 0.49 | 0.48 | 0.34 | 0.51 | 0.44 |
| Asset Turnover | — | 0.99 | 1.07 | 1.15 | 1.04 | 1.00 | 0.97 | 1.32 | 1.28 | 1.24 | 1.41 |
| Inventory Turnover | 4.20 | 4.20 | 3.46 | 6.29 | 9.86 | 13.26 | 7.06 | 7.14 | 7.16 | 6.21 | 6.70 |
| Days Sales Outstanding | — | 40.57 | 29.25 | 50.63 | 60.41 | 56.58 | 47.25 | 63.93 | 78.86 | 56.82 | 56.24 |
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 | — | — | — | 2.2% | 3.7% | 0.1% | — | — | — | — | — |
| FCF Yield | 3.0% | 5.4% | 2.1% | 6.8% | 9.5% | 8.9% | 4.0% | 10.8% | — | 4.9% | 7.2% |
| Buyback Yield | 0.9% | 1.6% | 2.9% | 2.9% | 3.8% | 0.0% | 5.8% | 2.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.9% | 1.6% | 2.9% | 2.9% | 3.8% | 0.0% | 5.8% | 2.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $132M | $129M | $134M | $133M | $128M | $120M | $118M | $114M | $108M | $103M |
Operating margin volatility
Based on reported figures, Extreme Networks trades at a forward P/E of 30.72, which suggests the market is pricing in a significant recovery in profitability that remains unproven compared to the premium multiples commanded by industry leaders like Arista Networks in the cloud-managed networking space.
The valuation appears to reflect a 'challenger discount' as investors weigh the company's transition to a SaaS-heavy model against its history of inconsistent GAAP earnings. The high EV/EBITDA multiple of 117.61 indicates that current earnings power is insufficient to justify the enterprise value, implying that the market is betting on future margin expansion rather than current cash generation.
According to recent financial statements, Extreme Networks' ROIC has fluctuated wildly from -23.2% in 2024Q3 to 13.5% in 2026Q3, illustrating that the company has yet to establish a consistent track record of compounding capital effectively through its various hardware and software integration cycles.
The volatility in ROIC suggests that the company's capital allocation strategy is heavily influenced by non-recurring integration costs and cyclical hardware demand. Investors should monitor whether the recent improvement in returns is a structural shift toward higher-margin software or merely a temporary byproduct of normalized supply chain conditions.
As reported in quarterly filings, the cash conversion cycle remains elevated at 50 days in 2026Q3, driven by persistent inventory management challenges that continue to tie up liquidity and limit the company's ability to self-fund its ongoing R&D and sales force expansion efforts.
The high DIO relative to peers suggests that the company struggles to optimize its inventory levels during product transitions, such as the shift to Universal Hardware. This inefficiency forces a reliance on external financing or cash reserves, which complicates the company's path to sustained free cash flow generation.
Based on the provided balance sheet data, the current ratio of 0.91 in 2026Q3 indicates that Extreme Networks maintains a narrow liquidity buffer, leaving the firm with limited room for error should revenue growth stall or working capital requirements unexpectedly spike in the coming quarters.
The consistent sub-1.0 current ratio suggests that the company operates with minimal short-term financial slack, which may force management to prioritize liquidity preservation over aggressive growth investments. This structural constraint warrants close monitoring, as any disruption in the collection of receivables could immediately impact the company's ability to meet its near-term obligations.
As evidenced by recent financial disclosures, the P/E ratio is a misleading metric for Extreme Networks because it fails to account for the significant impact of stock-based compensation, which frequently exceeds net income and masks the true economic cost of the company's growth strategy.
Investors should prioritize free cash flow and adjusted EBITDA over GAAP P/E, as the latter is heavily distorted by non-cash expenses and historical acquisition-related accounting. Relying on P/E in this context may lead to an overestimation of the company's profitability, as it ignores the dilution and cash-equivalent costs associated with the company's compensation structure.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying EXTR stock.
Extreme Networks, Inc.'s current P/E ratio is -555.5x. The historical average is 49.1x.
Extreme Networks, Inc.'s current EV/EBITDA is 116.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.6x.
Extreme Networks, Inc.'s return on equity (ROE) is -16.4%. The historical average is -20.6%.
Based on historical data, Extreme Networks, Inc. is trading at a P/E of -555.5x. Compare with industry peers and growth rates for a complete picture.
Extreme Networks, Inc. has 62.2% gross margin and 1.5% operating margin.
Extreme Networks, Inc.'s Debt/EBITDA ratio is 6.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.