Latest Ratios: P/E Ratio -1.6x · EV/EBITDA 32.6x · ROE -102.4%. (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 | $1.7B | $1.6B | $1.7B | $3.1B | — | — |
| Enterprise Value | $1.5B | $1.5B | $2.7B | $4.7B | — | — |
| P/E Ratio → | -1.62 | — | — | — | — | — |
| P/S Ratio | 0.61 | 0.58 | 0.62 | 1.09 | — | — |
| P/B Ratio | 2.83 | 2.79 | 1.23 | 1.81 | — | — |
| P/FCF | 18.72 | 17.82 | 7.03 | 24.19 | — | — |
| P/OCF | 14.57 | 13.86 | 6.35 | 18.40 | — | — |
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 | — | 0.54 | 1.02 | 1.64 | — | — |
| EV / EBITDA | 32.63 | 30.94 | — | 35.87 | — | — |
| EV / EBIT | — | — | — | 118.94 | — | — |
| EV / FCF | — | 16.61 | 11.59 | 36.40 | — | — |
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 | 15.6% | 15.6% | 19.8% | 20.8% | 25.5% | 19.8% |
| Operating Margin | -1.1% | -1.1% | -6.0% | 1.1% | 6.6% | 3.7% |
| Net Profit Margin | -36.2% | -36.2% | -12.2% | -0.9% | 6.6% | 3.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| ROE | -102.4% | -102.4% | -21.4% | -1.0% | 5.6% | 3.0% |
| ROA | -31.3% | -31.3% | -8.3% | -0.6% | 4.3% | 2.2% |
| ROIC | -1.6% | -1.6% | -4.2% | 0.7% | 4.3% | 2.6% |
| ROCE | -1.4% | -1.4% | -5.2% | 0.9% | 5.2% | 3.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Debt / Equity | 0.12 | 0.12 | 0.88 | 0.98 | 0.02 | 0.02 |
| Debt / EBITDA | 1.43 | 1.43 | — | 12.86 | 0.23 | 0.28 |
| Net Debt / Equity | — | -0.19 | 0.79 | 0.91 | -0.01 | -0.01 |
| Net Debt / EBITDA | -2.25 | -2.25 | — | 12.03 | -0.17 | -0.06 |
| Debt / FCF | — | -1.21 | 4.55 | 12.20 | -1.72 | -0.12 |
| Interest Coverage | -9.75 | -9.75 | -1.22 | 0.56 | 936.00 | 683.00 |
Net cash position: cash ($175M) exceeds total debt ($68M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Current Ratio | 0.98 | 0.98 | 1.00 | 1.61 | 1.78 | 1.35 |
| Quick Ratio | 0.98 | 0.98 | 1.00 | 1.61 | 1.78 | 1.35 |
| Cash Ratio | 0.19 | 0.19 | 0.12 | 0.14 | 0.16 | 0.11 |
| Asset Turnover | — | 1.00 | 0.75 | 0.66 | 0.66 | 0.70 |
| Inventory Turnover | — | — | — | — | — | — |
| Days Sales Outstanding | — | 79.03 | 93.94 | 129.76 | 135.27 | 113.39 |
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 | — | — | — | — | — | — |
| FCF Yield | 5.3% | 5.6% | 14.2% | 4.1% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $91M | $90M | $89M | $88M | $88M |
Persistent operating margin deficits
Based on current market data, Fortrea trades at a P/S multiple of 0.61, which suggests investors are pricing in significant execution risk compared to the premium multiples commanded by established CRO peers like IQVIA or Medpace, whose valuations reflect superior margin profiles and historical stability.
The forward P/E of 22.13 implies that the market is banking on a rapid return to profitability that has yet to manifest in the company's recent quarterly results. This valuation appears to be a 'turnaround' play, where the current discount may be justified by the lack of a proven track record as an independent entity.
As reported in financial statements, Fortrea's ROIC has remained largely negative or negligible, with a recent reading of -2.0% in 2026Q1, highlighting the company's struggle to generate returns above its cost of capital while navigating the high fixed-cost burden of its post-spin-off corporate infrastructure.
The inability to achieve positive returns on invested capital suggests that the company's current asset base is not yet optimized for its standalone operational requirements. Investors should monitor whether management can improve asset utilization, as the current trend indicates a persistent decay in capital efficiency compared to the broader healthcare services sector.
According to recent SEC filings, Fortrea's Days Sales Outstanding (DSO) has fluctuated significantly, reaching 85 days in 2026Q1, which suggests that the company faces ongoing challenges in converting its clinical service contracts into cash compared to the more streamlined collection cycles of its larger, more established industry peers.
The high DSO levels may indicate that the company lacks the leverage to enforce tighter payment terms with its sponsor base, potentially reflecting a weaker competitive position. This inefficiency in the cash conversion cycle appears to be a structural drag on liquidity that warrants further investigation into contract terms and client credit quality.
Based on reported figures, Fortrea's interest coverage ratio has frequently dipped into negative territory, including a -0.64 reading in 2026Q1, which indicates that the company's ability to service its debt obligations is currently compromised by its persistent operating losses and lack of consistent cash flow generation.
While the company has taken steps to reduce its debt load, the volatility in its debt-to-EBITDA ratios suggests that the balance sheet remains vulnerable to any further operational setbacks. The reliance on debt reduction as a primary lever for stability may limit the company's flexibility to invest in necessary growth initiatives.
As noted in recent financial disclosures, the market's focus on gross revenue and standard P/S multiples often obscures the impact of low-margin pass-through expenses, which can artificially inflate the company's top-line figures while masking the true, lower-margin nature of its core clinical trial service business.
Analysts should prioritize 'Net Revenue'—which excludes reimbursable out-of-pocket costs—to better assess the company's actual operational scale and margin potential. Relying on gross revenue metrics likely leads to an overestimation of the company's underlying profitability and competitive strength in the highly fragmented CRO market.
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Quick answers to the most common questions about buying FTRE stock.
Fortrea Holdings Inc.'s current P/E ratio is -1.6x. This places it at the 50th percentile of its historical range.
Fortrea Holdings Inc.'s current EV/EBITDA is 32.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 33.4x.
Fortrea Holdings Inc.'s return on equity (ROE) is -102.4%. The historical average is -23.2%.
Based on historical data, Fortrea Holdings Inc. is trading at a P/E of -1.6x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Fortrea Holdings Inc. has 15.6% gross margin and -1.1% operating margin.
Fortrea Holdings Inc.'s Debt/EBITDA ratio is 1.4x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.