Latest Ratios: P/E Ratio 23.4x · EV/EBITDA 12.8x · ROE 41.5%. (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 | $7.1B | $11.0B | $5.8B | $3.1B | $1.5B | $2.2B | $1.9B | $1.7B | $2.3B | $2.7B | $3.2B |
| Enterprise Value | $6.9B | $10.7B | $5.7B | $3.2B | $1.4B | $2.0B | $1.8B | $1.4B | $2.2B | $2.6B | $3.1B |
| P/E Ratio → | 23.39 | 26.98 | 16.05 | 14.24 | 16.12 | 40.47 | 42.14 | 82.56 | 36.70 | 15.64 | 10.40 |
| P/S Ratio | 8.52 | 13.16 | 6.63 | 5.55 | 3.29 | 5.26 | 5.25 | 5.43 | 7.63 | 5.11 | 4.83 |
| P/B Ratio | 8.64 | 9.97 | 6.71 | 5.24 | 2.06 | 2.97 | 2.37 | 2.20 | 2.50 | 3.12 | 4.26 |
| P/FCF | 13.44 | 20.77 | 21.66 | 18.04 | 6.20 | 24.64 | 15.57 | 33.67 | 21.34 | 9.77 | 8.30 |
| P/OCF | 13.05 | 20.16 | 21.20 | 14.27 | 5.27 | 17.34 | 11.53 | 19.37 | 15.98 | 8.63 | 7.46 |
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 | — | 12.88 | 6.59 | 5.89 | 3.15 | 4.65 | 5.02 | 4.54 | 7.23 | 4.85 | 4.65 |
| EV / EBITDA | 12.78 | 19.98 | 11.23 | 10.82 | 6.29 | 13.23 | 13.23 | 12.60 | 17.26 | 7.21 | 6.32 |
| EV / EBIT | 14.91 | 21.09 | 12.04 | 11.59 | 9.80 | 23.88 | 25.00 | 21.65 | 32.67 | 8.34 | 6.99 |
| EV / FCF | — | 20.32 | 21.53 | 19.15 | 5.93 | 21.76 | 14.89 | 28.15 | 20.22 | 9.28 | 8.00 |
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 | 80.3% | 80.3% | 80.5% | 85.6% | 84.4% | 84.8% | 52.6% | 51.4% | 59.6% | 80.7% | 84.5% |
| Operating Margin | 55.3% | 55.3% | 50.6% | 40.3% | 32.9% | 16.7% | 15.4% | 11.9% | 20.4% | 56.6% | 65.7% |
| Net Profit Margin | 48.8% | 48.8% | 41.3% | 39.0% | 20.5% | 13.0% | 12.5% | 6.6% | 21.2% | 33.1% | 46.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 41.5% | 41.5% | 49.9% | 32.6% | 12.6% | 7.1% | 5.7% | 2.4% | 7.2% | 21.7% | 48.4% |
| ROA | 20.9% | 20.9% | 19.9% | 11.7% | 5.3% | 3.4% | 2.8% | 1.3% | 3.7% | 9.8% | 19.3% |
| ROIC | 40.9% | 40.9% | 41.5% | 23.2% | 19.5% | 8.9% | 6.8% | 4.3% | 6.1% | 32.9% | 57.6% |
| ROCE | 38.1% | 38.1% | 44.0% | 17.6% | 10.4% | 5.5% | 4.2% | 2.7% | 4.3% | 21.7% | 36.8% |
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 | 0.46 | 0.46 | 0.57 | 1.07 | 0.86 | 0.59 | 0.49 | 0.60 | 0.37 | 0.34 | 0.38 |
| Debt / EBITDA | 0.94 | 0.94 | 0.96 | 2.09 | 2.74 | 2.97 | 2.89 | 4.11 | 2.73 | 0.82 | 0.59 |
| Net Debt / Equity | — | -0.21 | -0.04 | 0.32 | -0.09 | -0.35 | -0.10 | -0.36 | -0.13 | -0.16 | -0.16 |
| Net Debt / EBITDA | -0.43 | -0.43 | -0.07 | 0.63 | -0.29 | -1.75 | -0.60 | -2.47 | -0.96 | -0.38 | -0.24 |
| Debt / FCF | — | -0.44 | -0.14 | 1.11 | -0.27 | -2.88 | -0.68 | -5.51 | -1.12 | -0.49 | -0.30 |
| Interest Coverage | 12.75 | 12.75 | 10.45 | 6.23 | 4.99 | 3.28 | 1.77 | 1.63 | 1.89 | 17.38 | 20.99 |
Net cash position: cash ($739M) exceeds total debt ($506M)
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 | 1.84 | 1.84 | 1.70 | 1.33 | 4.96 | 2.83 | 3.47 | 3.33 | 5.71 | 3.71 | 2.87 |
| Quick Ratio | 1.84 | 1.84 | 1.70 | 1.33 | 4.96 | 2.83 | 3.47 | 3.33 | 5.71 | 3.71 | 2.87 |
| Cash Ratio | 1.65 | 1.65 | 1.32 | 1.14 | 4.43 | 2.53 | 3.14 | 3.06 | 5.27 | 3.08 | 2.24 |
| Asset Turnover | — | 0.40 | 0.47 | 0.31 | 0.24 | 0.26 | 0.22 | 0.20 | 0.19 | 0.29 | 0.39 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 30.55 | 86.15 | 91.07 | 93.52 | 75.71 | 16.28 | 32.36 | 41.60 | 148.14 | 125.24 |
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 | 0.6% | 0.6% | 0.7% | 1.3% | 2.8% | 1.9% | 2.3% | 2.6% | 2.1% | 1.6% | 1.0% |
| Payout Ratio | 14.9% | 14.9% | 11.7% | 18.4% | 45.2% | 77.9% | 96.1% | 213.0% | 74.5% | 24.5% | 10.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.3% | 3.7% | 6.2% | 7.0% | 6.2% | 2.5% | 2.4% | 1.2% | 2.7% | 6.4% | 9.6% |
| FCF Yield | 7.4% | 4.8% | 4.6% | 5.5% | 16.1% | 4.1% | 6.4% | 3.0% | 4.7% | 10.2% | 12.0% |
| Buyback Yield | 1.4% | 0.9% | 1.2% | 11.1% | 4.9% | 1.3% | 0.0% | 11.3% | 4.7% | 0.3% | 2.0% |
| Total Shareholder Yield | 2.1% | 1.5% | 1.9% | 12.4% | 7.7% | 3.3% | 2.3% | 13.9% | 6.8% | 1.9% | 3.0% |
| Shares Outstanding | — | $34M | $30M | $28M | $30M | $31M | $31M | $32M | $35M | $36M | $35M |
Licensing revenue concentration risk
Based on reported figures, InterDigital trades at a forward P/E of 38.28, which appears to incorporate a significant risk premium compared to historical averages, likely reflecting market skepticism regarding the sustainability of current licensing revenue streams amidst ongoing global regulatory scrutiny and handset market saturation.
The divergence between the TTM P/E of 23.38 and the forward multiple suggests that investors are pricing in a potential contraction in earnings as current high-margin contracts reach maturity. This valuation profile warrants further investigation into whether the market is correctly discounting the transition from variable-rate smartphone royalties to more stable, yet potentially lower-margin, fixed-fee IoT and automotive agreements.
As reported in financial statements, InterDigital's ROIC has exhibited significant volatility, peaking at 15.9% in 2025Q2 before moderating to 7.0% in 2026Q1, a trend that underscores the company's reliance on the timing of major patent settlements rather than consistent operational compounding of invested capital.
The fluctuation in returns suggests that the company's capital efficiency is highly sensitive to the legal enforcement cycle. Investors should monitor whether the recent shift toward fixed-fee structures can stabilize these returns, as the current variability makes it difficult to assess the long-term compounding power of the underlying patent portfolio.
According to recent SEC filings, InterDigital's DSO has fluctuated wildly, reaching a high of 167 days in 2025Q3, which indicates that the company's cash conversion cycle is heavily dictated by the timing of contract renewals and legal settlements rather than standard operational trade credit terms.
The lack of a consistent CCC trend suggests that traditional efficiency metrics may be less meaningful for this business model. The significant swings in receivables imply that management's ability to collect on licensing agreements is the primary determinant of liquidity, rather than the efficiency of the underlying software-licensing operations.
Based on the provided financial data, the P/E ratio is frequently misapplied to InterDigital, as it fails to account for the non-recurring 'catch-up' payments mandated by ASC 606, which artificially inflate or deflate earnings in any given quarter, thereby obscuring the true underlying run-rate of the business.
Analysts should instead focus on normalized cash flow metrics or EV/EBITDA, which better capture the company's ability to generate cash from its IP portfolio regardless of accounting recognition timing. Relying on P/E in this context may lead to erroneous conclusions about the company's growth trajectory during periods of heavy contract renewal activity.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying IDCC stock.
InterDigital, Inc.'s current P/E ratio is 23.4x. The historical average is 31.0x. This places it at the 58th percentile of its historical range.
InterDigital, Inc.'s current EV/EBITDA is 12.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.4x.
InterDigital, Inc.'s return on equity (ROE) is 41.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 21.1%.
Based on historical data, InterDigital, Inc. is trading at a P/E of 23.4x. This is at the 58th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
InterDigital, Inc.'s current dividend yield is 0.64% with a payout ratio of 14.9%.
InterDigital, Inc. has 80.3% gross margin and 55.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
InterDigital, Inc.'s Debt/EBITDA ratio is 0.9x, indicating low leverage. A ratio below 2x is generally considered financially healthy.