Latest Ratios: P/E Ratio 23.9x · EV/EBITDA 16.4x · ROE 32.4%. (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 | $43.5B | $44.5B | $45.3B | $33.5B | $27.6B | $31.5B | $20.3B | $17.4B | $19.7B | $15.3B | $13.7B |
| Enterprise Value | $48.8B | $49.8B | $50.3B | $38.1B | $32.0B | $33.8B | $22.7B | $18.6B | $20.8B | $16.0B | $15.0B |
| P/E Ratio → | 23.95 | 23.96 | 26.10 | 17.72 | 13.01 | 21.38 | 21.07 | 15.65 | 15.54 | 15.37 | 16.02 |
| P/S Ratio | 1.41 | 1.45 | 1.53 | 1.13 | 0.97 | 1.38 | 1.02 | 0.79 | 0.95 | 0.79 | 0.83 |
| P/B Ratio | 7.62 | 7.63 | 8.07 | 6.65 | 5.92 | 6.29 | 4.64 | 3.99 | 4.85 | 3.36 | 3.58 |
| P/FCF | 27.12 | 27.75 | 30.19 | 14.67 | 32.13 | 27.59 | 16.06 | 19.90 | 26.71 | 20.22 | 18.28 |
| P/OCF | 22.79 | 23.32 | 24.19 | 12.30 | 24.02 | 22.78 | 13.12 | 13.45 | 19.00 | 15.43 | 13.21 |
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 | — | 1.62 | 1.70 | 1.28 | 1.12 | 1.48 | 1.14 | 0.84 | 1.00 | 0.83 | 0.91 |
| EV / EBITDA | 16.37 | 16.71 | 16.82 | 12.78 | 10.24 | 15.01 | 13.71 | 10.99 | 12.94 | 8.39 | 11.39 |
| EV / EBIT | 18.71 | 18.53 | 19.01 | 14.38 | 11.34 | 17.22 | 16.62 | 13.07 | 16.56 | 10.75 | 15.77 |
| EV / FCF | — | 31.05 | 33.48 | 16.69 | 37.20 | 29.58 | 17.97 | 21.30 | 28.18 | 21.19 | 19.98 |
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 | 30.7% | 30.7% | 30.5% | 30.4% | 30.7% | 30.6% | 30.0% | 29.3% | 29.1% | 29.0% | 28.6% |
| Operating Margin | 8.5% | 8.5% | 8.9% | 8.9% | 9.9% | 8.6% | 6.9% | 6.4% | 6.6% | 7.7% | 5.7% |
| Net Profit Margin | 6.0% | 6.0% | 5.9% | 6.4% | 7.4% | 6.5% | 4.8% | 5.0% | 6.1% | 4.8% | 5.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 32.4% | 32.4% | 32.6% | 38.9% | 43.9% | 31.4% | 22.0% | 26.4% | 29.5% | 22.0% | 22.0% |
| ROA | 10.8% | 10.8% | 10.7% | 11.9% | 14.5% | 10.8% | 7.7% | 10.3% | 11.2% | 7.9% | 7.8% |
| ROIC | 18.0% | 18.0% | 19.7% | 21.4% | 26.0% | 20.8% | 16.7% | 19.7% | 19.6% | 21.3% | 13.4% |
| ROCE | 22.6% | 22.6% | 24.2% | 26.0% | 29.9% | 22.1% | 17.2% | 21.0% | 22.4% | 24.5% | 15.4% |
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 | 1.02 | 1.02 | 0.98 | 1.04 | 1.10 | 0.72 | 1.03 | 0.54 | 0.47 | 0.72 | 0.66 |
| Debt / EBITDA | 2.00 | 2.00 | 1.85 | 1.76 | 1.64 | 1.60 | 2.73 | 1.39 | 1.19 | 1.71 | 1.92 |
| Net Debt / Equity | — | 0.91 | 0.88 | 0.91 | 0.93 | 0.45 | 0.55 | 0.28 | 0.27 | 0.16 | 0.33 |
| Net Debt / EBITDA | 1.78 | 1.78 | 1.66 | 1.54 | 1.40 | 1.01 | 1.45 | 0.72 | 0.67 | 0.38 | 0.97 |
| Debt / FCF | — | 3.30 | 3.30 | 2.01 | 5.07 | 1.99 | 1.91 | 1.40 | 1.46 | 0.97 | 1.71 |
| Interest Coverage | 14.14 | 14.14 | 14.77 | 14.39 | 25.40 | 20.00 | 14.68 | 14.65 | 18.72 | 23.23 | 18.88 |
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 | 1.68 | 1.68 | 1.80 | 1.67 | 1.65 | 1.72 | 1.70 | 1.72 | 1.64 | 1.45 | 1.47 |
| Quick Ratio | 0.94 | 0.94 | 1.00 | 0.95 | 0.90 | 1.02 | 1.09 | 1.05 | 1.02 | 1.08 | 0.91 |
| Cash Ratio | 0.11 | 0.11 | 0.11 | 0.12 | 0.13 | 0.28 | 0.45 | 0.27 | 0.21 | 0.39 | 0.27 |
| Asset Turnover | — | 1.74 | 1.79 | 1.86 | 1.82 | 1.66 | 1.48 | 1.93 | 2.04 | 1.54 | 1.54 |
| Inventory Turnover | 4.75 | 4.75 | 4.91 | 5.31 | 4.57 | 4.83 | 4.85 | 5.51 | 5.85 | 5.71 | 4.44 |
| Days Sales Outstanding | — | 47.03 | 44.36 | 44.16 | 46.13 | 44.62 | 47.01 | 45.09 | 48.46 | 46.54 | 57.72 |
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 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.1% | 1.1% | 1.7% | 2.1% | 1.9% | 3.3% | 1.6% | 2.6% | 6.9% | 2.2% | 2.3% |
| Payout Ratio | 26.3% | 26.3% | 45.2% | 37.6% | 25.4% | 70.4% | 34.0% | 40.2% | 107.3% | 35.7% | 36.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.2% | 4.2% | 3.8% | 5.6% | 7.7% | 4.7% | 4.7% | 6.4% | 6.4% | 6.5% | 6.2% |
| FCF Yield | 3.7% | 3.6% | 3.3% | 6.8% | 3.1% | 3.6% | 6.2% | 5.0% | 3.7% | 4.9% | 5.5% |
| Buyback Yield | 2.2% | 2.1% | 1.4% | 2.7% | 5.9% | 1.3% | 2.4% | 1.1% | 3.6% | 0.0% | 3.3% |
| Total Shareholder Yield | 3.3% | 3.2% | 3.1% | 4.8% | 7.9% | 4.6% | 4.0% | 3.6% | 10.5% | 2.2% | 5.6% |
| Shares Outstanding | — | $199M | $204M | $207M | $219M | $225M | $227M | $232M | $248M | $240M | $242M |
Cyclical construction demand sensitivity
Based on current market data, Ferguson trades at a forward P/E of 21.12, which suggests that investors are pricing in a premium relative to its historical averages, despite the recent deceleration in organic revenue growth observed in the most recent quarterly filings.
The current valuation multiple appears to anticipate a recovery in US residential and infrastructure spending that may not yet be reflected in the company's recent earnings trajectory. Investors should monitor whether this premium is justified by the company's ability to maintain its competitive moat or if the multiple is vulnerable to further downward revisions as cyclical headwinds persist.
As reported in recent financial statements, Ferguson's ROIC has trended downward to 4.2% in 2026Q3, a significant contraction from the 6.3% peak observed in 2025Q4, indicating that the company is currently struggling to generate efficient returns on its invested capital base.
This decline in ROIC suggests that the company's recent capital deployment, including its bolt-on acquisition strategy, may be failing to keep pace with the cooling demand in its core end markets. The trend warrants further investigation into whether the company's asset-heavy distribution model is becoming less efficient as it navigates a more challenging macroeconomic environment.
According to quarterly data, Ferguson's cash conversion cycle reached 64 days in 2026Q3, reflecting persistent volatility in inventory management and receivables that continues to impact the company's overall operational efficiency compared to its historical performance in more stable construction cycles.
The fluctuation in the cash conversion cycle suggests that Ferguson is facing challenges in balancing inventory levels with shifting customer demand, which may lead to increased carrying costs. This inefficiency appears to be a structural risk, as the company's reliance on physical branch inventory makes it difficult to rapidly adjust to sudden changes in project-based revenue.
The P/E ratio is frequently misapplied to Ferguson's business model, as it obscures the significant impact of non-cash accounting adjustments and vendor rebate timing that can distort reported net income, making it a less reliable metric than EV/EBITDA for assessing true operational performance.
Investors should prioritize EV/EBITDA or free cash flow metrics to better understand the company's underlying earning power, as these measures are less susceptible to the accounting nuances inherent in industrial distribution. Relying solely on P/E may lead to an incomplete assessment of the company's ability to generate cash through the full construction cycle.
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 FERG stock.
Ferguson plc's current P/E ratio is 23.9x. The historical average is 30.1x. This places it at the 59th percentile of its historical range.
Ferguson plc's current EV/EBITDA is 16.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.7x.
Ferguson plc's return on equity (ROE) is 32.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 18.1%.
Based on historical data, Ferguson plc is trading at a P/E of 23.9x. This is at the 59th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Ferguson plc's current dividend yield is 1.10% with a payout ratio of 26.3%.
Ferguson plc has 30.7% gross margin and 8.5% operating margin.
Ferguson plc's Debt/EBITDA ratio is 2.0x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.