Latest Ratios: P/E Ratio 14.6x · EV/EBITDA 18.2x · ROE 24.2%. (2021–2025 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 |
|---|---|---|---|---|---|---|
| Market Cap | $72M | $34M | — | — | — | — |
| Enterprise Value | $72M | $35M | — | — | — | — |
| P/E Ratio → | 14.60 | 6.97 | — | — | — | — |
| P/S Ratio | 3.73 | 1.78 | — | — | — | — |
| P/B Ratio | 2.84 | 1.36 | — | — | — | — |
| P/FCF | — | — | — | — | — | — |
| P/OCF | — | — | — | — | — | — |
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 |
|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.80 | — | — | — | — |
| EV / EBITDA | 18.23 | 8.76 | — | — | — | — |
| EV / EBIT | 20.10 | 9.66 | — | — | — | — |
| EV / FCF | — | — | — | — | — | — |
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 |
|---|---|---|---|---|---|---|
| Gross Margin | 76.4% | 76.4% | 93.5% | 94.0% | 93.0% | 94.4% |
| Operating Margin | 18.7% | 18.7% | 21.3% | 31.6% | 20.5% | -1.8% |
| Net Profit Margin | 25.9% | 25.9% | 12.1% | 24.4% | 18.4% | 3.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| ROE | 24.2% | 24.2% | 13.1% | 37.0% | 35.6% | 7.1% |
| ROA | 15.8% | 15.8% | 7.9% | 23.5% | 21.9% | 4.5% |
| ROIC | 11.9% | 11.9% | 14.7% | 31.5% | 27.8% | -2.6% |
| ROCE | 13.8% | 13.8% | 18.0% | 39.6% | 33.4% | -2.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Debt / Equity | 0.23 | 0.23 | 0.41 | 0.20 | 0.28 | 0.14 |
| Debt / EBITDA | 1.44 | 1.44 | 1.64 | 0.45 | 0.69 | 3.25 |
| Net Debt / Equity | — | 0.02 | 0.23 | 0.12 | 0.16 | -0.06 |
| Net Debt / EBITDA | 0.12 | 0.12 | 0.91 | 0.27 | 0.41 | -1.50 |
| Debt / FCF | — | — | — | — | — | — |
| Interest Coverage | 7.56 | 7.56 | 10.97 | 19.53 | 30.32 | 16.57 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Current Ratio | 3.85 | 3.85 | 2.00 | 1.98 | 1.83 | 1.98 |
| Quick Ratio | 3.75 | 3.75 | 1.93 | 1.95 | 1.74 | 1.78 |
| Cash Ratio | 1.22 | 1.22 | 0.45 | 0.24 | 0.27 | 0.43 |
| Asset Turnover | — | 0.56 | 0.58 | 0.83 | 1.00 | 1.15 |
| Inventory Turnover | 10.16 | 10.16 | 2.53 | 9.42 | 3.10 | 1.05 |
| Days Sales Outstanding | — | 502.72 | 200.69 | 153.85 | 111.00 | 121.72 |
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 |
|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Earnings Yield | 6.8% | 14.3% | — | — | — | — |
| FCF Yield | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | — | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | — | — | — | — |
| Shares Outstanding | — | $14M | $13M | $15M | $14M | $14M |
Small scale revenue volatility
According to recent market data, FatPipe trades at a P/E of 17.26 and an EV/EBITDA of 21.52, suggesting that investors are pricing in a growth trajectory that may be inconsistent with the company's historical revenue volatility and its current transition toward a subscription-based software model.
The current valuation multiples appear to reflect a premium for the company's proprietary WAN clustering technology, yet the forward EV/EBITDA of 16.13 implies a significant expectation for margin expansion. Investors should monitor whether this valuation is supported by sustainable recurring revenue growth or if it remains vulnerable to the lumpy, project-based nature of the firm's legacy hardware business.
Based on reported figures, FatPipe's ROIC has fluctuated significantly, peaking at 11.3% in 2023Q4 before declining to 7.0% in 2025Q4, which indicates that the company is struggling to consistently compound returns on its invested capital during its ongoing transition to a SaaS-centric operational model.
The volatility in ROIC suggests that the firm's capital allocation is highly sensitive to the timing of large contract wins and the associated working capital requirements. This inconsistency warrants further investigation into whether the company can maintain efficient capital deployment as it scales its cloud-delivered security services.
As reported in financial statements, the company's cash conversion cycle has expanded to 223 days in 2025Q4, a trend that highlights significant inefficiencies in managing receivables and inventory compared to the more streamlined operations of its infrastructure networking peers in the broader technology sector.
The extended DSO of 228 days suggests that FatPipe may be offering generous payment terms to secure government and enterprise contracts, which effectively ties up liquidity. This reliance on extended credit cycles appears to be a structural drag on the company's ability to convert its high gross margins into meaningful free cash flow.
Based on an analysis of quarterly filings, the net margin of 25.87% is frequently misapplied by market participants as a proxy for operational health, when in fact it is heavily influenced by non-operating income and tax adjustments that obscure the firm's underlying cash-generating capability.
Analysts should prioritize operating margins over net margins to better assess the core profitability of the business, as the latter often masks the volatility of the company's transition to a subscription model. Relying on net income figures may lead to an overestimation of the firm's ability to sustain its current earnings profile without non-recurring support.
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Quick answers to the most common questions about buying FATN stock.
FatPipe, Inc. Common Stock's current P/E ratio is 14.6x. The historical average is 7.0x. This places it at the 100th percentile of its historical range.
FatPipe, Inc. Common Stock's current EV/EBITDA is 18.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.8x.
FatPipe, Inc. Common Stock's return on equity (ROE) is 24.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 23.4%.
Based on historical data, FatPipe, Inc. Common Stock is trading at a P/E of 14.6x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
FatPipe, Inc. Common Stock has 76.4% gross margin and 18.7% operating margin. Operating margin between 10-20% is typical for established companies.
FatPipe, Inc. Common Stock's Debt/EBITDA ratio is 1.4x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.