Latest Ratios: P/E Ratio 57.3x · EV/EBITDA 53.7x · ROE 22.0%. (2019–2025 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 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $105.9B | $103.9B | $33.8B | $11.3B | $7.2B | $15.3B | — | — |
| Enterprise Value | $117.0B | $115.1B | $36.9B | $10.1B | $2.6B | $12.7B | — | — |
| P/E Ratio → | 57.34 | 55.17 | 23.88 | — | — | — | — | — |
| P/S Ratio | 23.67 | 23.23 | 11.44 | 6.09 | 5.27 | 8.45 | — | — |
| P/B Ratio | 11.80 | 11.36 | 4.24 | 1.69 | 1.03 | 2.10 | — | — |
| P/FCF | 65.25 | 64.03 | — | 9.78 | — | — | — | — |
| P/OCF | 64.65 | 63.44 | — | 9.61 | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 25.72 | 12.50 | 5.39 | 1.95 | 7.02 | — | — |
| EV / EBITDA | 53.69 | 52.78 | 32.62 | — | — | — | — | — |
| EV / EBIT | 55.89 | 54.95 | 35.00 | — | — | — | — | — |
| EV / FCF | — | 70.89 | — | 8.67 | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 83.3% | 83.3% | 79.4% | 92.2% | 56.7% | 72.0% | 75.3% | 66.4% |
| Operating Margin | 46.8% | 46.8% | 35.7% | -28.7% | -71.1% | -90.4% | 1.4% | -38.5% |
| Net Profit Margin | 42.1% | 42.1% | 47.8% | -29.0% | -75.7% | -203.1% | 0.7% | -38.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | 22.0% | 22.0% | 19.2% | -7.9% | -14.4% | -101.9% | — | — |
| ROA | 5.9% | 5.9% | 6.4% | -2.6% | -4.8% | -24.0% | 0.1% | -2.7% |
| ROIC | 7.9% | 7.9% | 6.2% | -4.2% | -7.3% | -19.2% | 0.8% | -13.9% |
| ROCE | 24.0% | 24.0% | 14.2% | -7.7% | -13.3% | -34.2% | 0.9% | -12.7% |
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 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.68 | 1.68 | 0.94 | 0.53 | 0.26 | 0.50 | — | — |
| Debt / EBITDA | 7.07 | 7.07 | 6.60 | — | — | — | 83.53 | — |
| Net Debt / Equity | — | 1.22 | 0.39 | -0.19 | -0.65 | -0.36 | — | — |
| Net Debt / EBITDA | 5.11 | 5.11 | 2.77 | — | — | — | 22.54 | — |
| Debt / FCF | — | 6.87 | — | -1.11 | — | — | 0.28 | 0.02 |
| Interest Coverage | — | — | 43.92 | -23.30 | -40.25 | -81.17 | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.00 | 1.00 | 1.39 | 1.58 | 1.41 | 1.56 | 1.23 | 1.25 |
| Quick Ratio | 1.00 | 1.00 | 1.39 | 1.58 | 1.41 | 1.56 | 1.23 | 1.25 |
| Cash Ratio | 0.15 | 0.15 | 0.24 | 0.45 | 0.39 | 0.51 | 0.16 | 0.21 |
| Asset Turnover | — | 0.12 | 0.11 | 0.11 | 0.06 | 0.09 | 0.09 | 0.07 |
| Inventory Turnover | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.7% | 1.8% | 4.2% | — | — | — | — | — |
| FCF Yield | 1.5% | 1.6% | — | 10.2% | — | — | — | — |
| Buyback Yield | 0.6% | — | — | — | — | — | — | — |
| Total Shareholder Yield | 0.6% | — | — | — | — | — | — | — |
| Shares Outstanding | — | $919M | $906M | $891M | $879M | $864M | $850M | $850M |
Regulatory PFOF Model Dependency
According to current market data, HOOD trades at a P/E of 48.14, which, when compared to the broader financial services sector, suggests investors are pricing in significant future earnings expansion rather than relying on the company's historical, more volatile, and less predictable profitability metrics.
The forward P/E of 52.77 implies that the market anticipates a sustained acceleration in earnings, likely driven by the successful cross-selling of banking products to the existing user base. Investors should monitor whether this premium valuation remains justified if retail trading volumes normalize or if regulatory headwinds compress the current high-margin revenue streams.
Based on reported financial statements, ROIC has trended upward from 0.2% in 2023Q4 to 1.8% in 2026Q1, indicating that the firm is beginning to generate more meaningful returns on its invested capital as the platform achieves greater operational leverage and reduces its reliance on external funding.
While these returns remain modest compared to established incumbents like Charles Schwab, the trajectory suggests that the company's heavy investment in proprietary clearing infrastructure is finally yielding tangible efficiency gains. Analysts should watch for further expansion in ROIC as the firm shifts its asset mix toward higher-margin, recurring revenue streams like subscription-based Gold services.
As reported in recent filings, the company's DSO has expanded significantly from 718 in 2023Q4 to 1642 in 2026Q1, which suggests that the firm's cash conversion cycle is increasingly sensitive to the timing of clearing and settlement obligations inherent in its high-volume retail brokerage model.
This dramatic increase in DSO likely reflects the episodic nature of trade settlement rather than a deterioration in customer credit quality. Investors should interpret these figures with caution, as they highlight the inherent liquidity pressures that can arise during periods of extreme market volatility, necessitating robust cash buffers.
Based on an analysis of the firm's financial structure, the P/E ratio is frequently misapplied to this business model because it fails to account for the significant, non-cash impact of stock-based compensation, which consistently masks the true economic cost of maintaining the company's technical infrastructure.
Analysts should prioritize adjusted EBITDA or free cash flow metrics over GAAP earnings to better gauge the firm's actual cash-generative capacity. Relying solely on P/E may lead to an overestimation of the company's profitability, as it ignores the persistent dilution and expense associated with the talent required to sustain the platform's competitive advantage.
Includes 30+ ratios · 7 years · Updated daily
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Quick answers to the most common questions about buying HOOD stock.
Robinhood Markets, Inc.'s current P/E ratio is 57.3x. The historical average is 39.5x. This places it at the 100th percentile of its historical range.
Robinhood Markets, Inc.'s current EV/EBITDA is 53.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 42.7x.
Robinhood Markets, Inc.'s return on equity (ROE) is 22.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -16.6%.
Based on historical data, Robinhood Markets, Inc. is trading at a P/E of 57.3x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Robinhood Markets, Inc. has 83.3% gross margin and 46.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Robinhood Markets, Inc.'s Debt/EBITDA ratio is 7.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.