Latest Ratios: P/E Ratio 51.1x · EV/EBITDA 43.6x · ROE 17.8%. (2006–2025 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 | $16.8B | $10.7B | $9.0B | $4.8B | $3.1B | $3.6B | $2.2B | $1.9B | $1.4B | $1.6B | $1.4B |
| Enterprise Value | $16.5B | $10.4B | $8.5B | $4.6B | $2.9B | $3.3B | $2.1B | $1.7B | $1.3B | $1.6B | $1.3B |
| P/E Ratio → | 51.09 | 32.24 | 30.22 | 19.30 | 15.52 | 24.12 | 19.72 | 15.38 | 16.69 | 16.60 | 22.10 |
| P/S Ratio | 4.91 | 3.14 | 3.10 | 1.81 | 1.38 | 1.90 | 1.36 | 1.17 | 1.02 | 1.14 | 1.40 |
| P/B Ratio | 8.57 | 5.41 | 5.13 | 3.26 | 2.48 | 3.22 | 2.29 | 2.15 | 1.89 | 2.37 | 2.47 |
| P/FCF | 81.26 | 51.91 | 24.48 | 31.69 | 92.43 | 48.24 | 20.86 | 14.47 | 13.67 | 1786.25 | 224.63 |
| P/OCF | 51.11 | 32.65 | 21.66 | 22.44 | 25.04 | 29.30 | 14.84 | 12.61 | 10.16 | 22.76 | 29.07 |
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 | — | 3.05 | 2.97 | 1.73 | 1.30 | 1.77 | 1.26 | 1.10 | 0.95 | 1.09 | 1.32 |
| EV / EBITDA | 43.63 | 27.59 | 26.17 | 15.46 | 12.11 | 17.76 | 13.96 | 11.39 | 10.66 | 11.98 | 14.76 |
| EV / EBIT | 50.81 | 29.35 | 27.45 | 17.47 | 14.20 | 21.91 | 16.92 | 13.21 | 14.30 | 14.49 | 18.44 |
| EV / FCF | — | 50.47 | 23.38 | 30.25 | 87.48 | 44.78 | 19.31 | 13.53 | 12.76 | 1718.38 | 211.21 |
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 | 12.1% | 12.1% | 12.4% | 12.7% | 12.3% | 11.8% | 11.3% | 11.3% | 11.2% | 12.1% | 12.2% |
| Operating Margin | 9.5% | 9.5% | 9.6% | 9.5% | 9.0% | 8.0% | 7.2% | 7.7% | 6.8% | 7.5% | 7.1% |
| Net Profit Margin | 9.7% | 9.7% | 10.3% | 9.4% | 8.9% | 7.9% | 6.9% | 7.6% | 6.1% | 6.8% | 6.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 17.8% | 17.8% | 18.4% | 18.2% | 16.9% | 14.2% | 12.4% | 15.1% | 11.8% | 15.7% | 12.0% |
| ROA | 12.9% | 12.9% | 13.7% | 13.0% | 11.6% | 9.9% | 8.6% | 10.3% | 7.9% | 10.3% | 8.1% |
| ROIC | 16.1% | 16.1% | 16.0% | 16.2% | 15.8% | 13.6% | 11.3% | 13.2% | 11.1% | 14.5% | 11.9% |
| ROCE | 17.1% | 17.1% | 16.9% | 18.0% | 16.6% | 13.6% | 11.8% | 13.9% | 12.2% | 16.0% | 12.8% |
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 | 0.00 | 0.00 | 0.00 | 0.01 | 0.02 | 0.04 | 0.06 | 0.07 | 0.09 | 0.11 | 0.11 |
| Debt / EBITDA | 0.02 | 0.02 | 0.03 | 0.05 | 0.13 | 0.25 | 0.40 | 0.40 | 0.53 | 0.56 | 0.70 |
| Net Debt / Equity | — | -0.15 | -0.23 | -0.15 | -0.13 | -0.23 | -0.17 | -0.14 | -0.13 | -0.09 | -0.15 |
| Net Debt / EBITDA | -0.79 | -0.79 | -1.23 | -0.74 | -0.69 | -1.37 | -1.12 | -0.79 | -0.76 | -0.47 | -0.94 |
| Debt / FCF | — | -1.44 | -1.10 | -1.44 | -4.96 | -3.46 | -1.55 | -0.93 | -0.91 | -67.87 | -13.43 |
| Interest Coverage | — | — | 2511.92 | 177.70 | 480.09 | 137.80 | 40.17 | 24.46 | 25.41 | 32.27 | 44.49 |
Net cash position: cash ($306M) exceeds total debt ($9M)
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 | 3.00 | 3.00 | 3.61 | 3.43 | 2.83 | 3.04 | 3.40 | 3.27 | 3.16 | 2.57 | 2.63 |
| Quick Ratio | 2.28 | 2.28 | 2.78 | 2.35 | 1.80 | 2.09 | 2.47 | 2.33 | 2.21 | 1.80 | 1.92 |
| Cash Ratio | 1.15 | 1.15 | 1.54 | 1.14 | 0.89 | 1.23 | 1.46 | 1.40 | 1.23 | 0.92 | 1.11 |
| Asset Turnover | — | 1.21 | 1.23 | 1.34 | 1.23 | 1.16 | 1.19 | 1.26 | 1.26 | 1.38 | 1.14 |
| Inventory Turnover | 5.17 | 5.17 | 5.46 | 4.44 | 3.56 | 3.93 | 4.70 | 4.79 | 4.73 | 5.23 | 4.72 |
| Days Sales Outstanding | — | 81.01 | 75.01 | 73.38 | 73.04 | 67.67 | 68.97 | 62.91 | 65.69 | 67.93 | 73.30 |
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 | 2.0% | 3.1% | 3.3% | 5.2% | 6.4% | 4.1% | 5.1% | 6.5% | 6.0% | 6.0% | 4.5% |
| FCF Yield | 1.2% | 1.9% | 4.1% | 3.2% | 1.1% | 2.1% | 4.8% | 6.9% | 7.3% | 0.1% | 0.4% |
| Buyback Yield | 0.7% | 1.2% | 0.4% | 1.0% | 1.9% | 0.5% | 0.9% | 0.3% | 3.0% | 0.1% | 0.0% |
| Total Shareholder Yield | 0.7% | 1.2% | 0.4% | 1.0% | 1.9% | 0.5% | 0.9% | 0.3% | 3.0% | 0.1% | 0.0% |
| Shares Outstanding | — | $36M | $37M | $37M | $37M | $38M | $38M | $37M | $38M | $38M | $37M |
Extreme customer concentration risk
According to current market data, Fabrinet trades at a 57.23x TTM P/E ratio, a significant premium to the broader EMS sector that appears to price in aggressive long-term growth expectations linked to the ongoing 800G transceiver ramp-up within hyperscale data center infrastructure.
The forward P/E of 38.01 suggests that investors are anticipating substantial earnings expansion, yet this valuation remains sensitive to the company's ability to maintain its current growth trajectory. Given the high concentration of revenue, this premium may be vulnerable to any deceleration in the product roadmap of its primary customer.
As reported in recent financial statements, Fabrinet's ROIC has hovered between 3.9% and 4.7% over the last ten quarters, a level that appears modest relative to the high-complexity nature of its optical assembly business and the significant capital investments required for facility expansion.
The relatively low ROIC suggests that while the company is successfully capturing market share, the capital-intensive nature of its cleanroom operations and the pass-through cost structure limit the compounding potential of its invested capital. Investors should monitor whether future capacity utilization can drive these returns higher.
Based on the provided quarterly data, Fabrinet's cash conversion cycle has fluctuated, reaching 65 days in 2026Q3, which reflects the operational challenges of managing inventory and receivables during a period of rapid scaling to meet surging demand for high-complexity optical components.
The increase in DIO and DSO suggests that the company is carrying higher inventory levels to mitigate supply chain risks, which directly impacts its liquidity. This trend warrants further investigation to determine if these levels are structural requirements for its primary customer or temporary inefficiencies.
As indicated by the latest financial filings, Fabrinet maintains a debt-to-equity ratio of 0.00, positioning the company with a fortress balance sheet that provides a significant buffer against the cyclical volatility inherent in the telecommunications and data center hardware sectors.
The absence of debt allows the company to generate interest income that bolsters net margins, effectively insulating the bottom line from rising interest rate environments. This financial discipline appears to be a core component of management's strategy to navigate the risks associated with its extreme customer concentration.
The P/S ratio is frequently misapplied to Fabrinet, as it fails to account for the distinction between consignment and turnkey manufacturing models, which can artificially inflate revenue figures without necessarily reflecting a proportional increase in the underlying economic value added to the business.
Analysts should instead focus on operating margin and FCF conversion, as these metrics better capture the true earning power of the company's assembly services. Relying on top-line growth multiples may obscure the margin compression risks inherent in shifting product mixes and the impact of tax incentives.
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Quick answers to the most common questions about buying FN stock.
Fabrinet's current P/E ratio is 51.1x. The historical average is 17.5x. This places it at the 100th percentile of its historical range.
Fabrinet's current EV/EBITDA is 43.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.0x.
Fabrinet's return on equity (ROE) is 17.8%. The historical average is 17.8%.
Based on historical data, Fabrinet is trading at a P/E of 51.1x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Fabrinet has 12.1% gross margin and 9.5% operating margin.
Fabrinet's Debt/EBITDA ratio is 0.0x, indicating low leverage. A ratio below 2x is generally considered financially healthy.