Latest Ratios: P/E Ratio 143.4x · EV/EBITDA 50.5x · ROE 1.5%. (2004–2025 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 | $4.4B | $3.1B | $3.2B | $5.1B | $4.8B | $9.3B | $12.0B | $7.8B | $6.2B | $11.7B | $5.3B |
| Enterprise Value | $4.0B | $2.6B | $2.6B | $4.6B | $4.2B | $8.6B | $11.2B | $7.2B | $5.7B | $10.9B | $4.7B |
| P/E Ratio → | 143.42 | 98.08 | — | 23.44 | 43.83 | 33.36 | 75.35 | 43.26 | 15.35 | 33.67 | 20.35 |
| P/S Ratio | 4.43 | 3.04 | 3.30 | 3.99 | 3.37 | 6.35 | 10.02 | 5.94 | 4.25 | 8.31 | 5.28 |
| P/B Ratio | 2.10 | 1.43 | 1.59 | 2.13 | 2.02 | 3.38 | 4.64 | 3.25 | 2.81 | 5.79 | 3.41 |
| P/FCF | — | — | 21.58 | 27.69 | 47.03 | 34.82 | 60.90 | 41.07 | 26.61 | 42.15 | 32.14 |
| P/OCF | 58.98 | 40.53 | 13.01 | 17.35 | 22.67 | 23.82 | 42.18 | 24.12 | 15.76 | 28.96 | 18.17 |
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 | — | 2.64 | 2.68 | 3.60 | 2.91 | 5.91 | 9.33 | 5.45 | 3.91 | 7.70 | 4.70 |
| EV / EBITDA | 50.53 | 33.14 | — | 15.38 | 16.00 | 18.60 | 38.21 | 21.72 | 9.44 | 17.63 | 11.37 |
| EV / EBIT | 308.31 | 58.76 | 181.12 | 20.04 | 17.98 | 24.47 | 48.40 | 24.65 | 11.02 | 19.19 | 12.82 |
| EV / FCF | — | — | 17.55 | 25.01 | 40.59 | 32.38 | 56.69 | 37.74 | 24.47 | 39.05 | 28.61 |
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 | 38.0% | 38.0% | 34.6% | 42.1% | 38.9% | 47.7% | 44.9% | 46.1% | 54.8% | 56.6% | 54.9% |
| Operating Margin | 1.3% | 1.3% | -21.3% | 18.0% | 11.9% | 25.2% | 16.5% | 17.8% | 35.9% | 39.1% | 36.2% |
| Net Profit Margin | 3.1% | 3.1% | -18.6% | 17.0% | 7.7% | 19.1% | 13.3% | 13.7% | 27.7% | 24.7% | 25.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 1.5% | 1.5% | -8.2% | 9.1% | 4.3% | 10.4% | 6.4% | 7.8% | 19.1% | 19.4% | 18.5% |
| ROA | 1.3% | 1.3% | -7.3% | 8.0% | 3.7% | 9.1% | 5.6% | 6.8% | 16.3% | 16.7% | 16.1% |
| ROIC | 0.6% | 0.6% | -9.3% | 9.5% | 6.7% | 14.3% | 8.4% | 10.1% | 27.4% | 38.7% | 32.7% |
| ROCE | 0.6% | 0.6% | -9.1% | 9.4% | 6.4% | 13.2% | 7.6% | 9.6% | 23.3% | 29.0% | 24.8% |
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 | — | — | 0.01 | 0.01 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.03 |
| Debt / EBITDA | — | — | — | 0.06 | 0.15 | 0.13 | 0.15 | 0.14 | 0.08 | 0.08 | 0.10 |
| Net Debt / Equity | — | -0.19 | -0.30 | -0.21 | -0.28 | -0.24 | -0.32 | -0.26 | -0.23 | -0.43 | -0.37 |
| Net Debt / EBITDA | -5.05 | -5.05 | — | -1.65 | -2.54 | -1.40 | -2.84 | -1.92 | -0.83 | -1.40 | -1.40 |
| Debt / FCF | — | — | -4.03 | -2.68 | -6.44 | -2.44 | -4.21 | -3.33 | -2.14 | -3.10 | -3.53 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | 282.83 |
Net cash position: cash ($404M) exceeds total debt ($0)
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 | 6.08 | 6.08 | 6.98 | 8.91 | 7.23 | 7.49 | 10.01 | 9.88 | 7.35 | 8.82 | 8.22 |
| Quick Ratio | 4.74 | 4.74 | 5.59 | 6.80 | 5.38 | 6.02 | 8.31 | 7.90 | 5.70 | 7.27 | 6.71 |
| Cash Ratio | 3.59 | 3.59 | 4.54 | 5.48 | 4.29 | 4.83 | 6.48 | 6.16 | 4.25 | 5.61 | 5.25 |
| Asset Turnover | — | 0.41 | 0.43 | 0.48 | 0.52 | 0.46 | 0.41 | 0.48 | 0.57 | 0.59 | 0.56 |
| Inventory Turnover | 1.99 | 1.99 | 2.24 | 1.64 | 1.72 | 1.66 | 1.81 | 1.86 | 1.63 | 1.99 | 1.90 |
| Days Sales Outstanding | — | 66.08 | 63.92 | 62.10 | 53.96 | 65.49 | 80.35 | 66.21 | 63.88 | 61.47 | 56.55 |
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 | 0.7% | 1.0% | — | 4.3% | 2.3% | 3.0% | 1.3% | 2.3% | 6.5% | 3.0% | 4.9% |
| FCF Yield | — | — | 4.6% | 3.6% | 2.1% | 2.9% | 1.6% | 2.4% | 3.8% | 2.4% | 3.1% |
| Buyback Yield | 1.2% | 1.8% | 10.7% | 4.4% | 10.4% | 1.5% | 0.3% | 0.5% | 2.8% | 0.3% | 0.2% |
| Total Shareholder Yield | 1.2% | 1.8% | 10.7% | 4.4% | 10.4% | 1.5% | 0.3% | 0.5% | 2.8% | 0.3% | 0.2% |
| Shares Outstanding | — | $43M | $44M | $47M | $51M | $54M | $54M | $54M | $55M | $55M | $54M |
Structural margin compression risk
According to recent market data, IPGP trades at a trailing P/E of 146.84, a valuation that appears disconnected from the company's current 1.31% operating margin and suggests investors are pricing in a recovery that remains unsupported by the most recent quarterly financial performance metrics.
The current EV/EBITDA multiple of 51.85 significantly exceeds typical industrial hardware benchmarks, implying that the market continues to assign a technology-growth premium to a business that is increasingly behaving like a cyclical industrial manufacturer. This valuation gap warrants caution, as it suggests the market may be misinterpreting the company's transition from a high-margin innovator to a price-sensitive participant in the global fiber laser market.
Based on reported figures, IPGP's ROIC has trended toward zero, reaching -0.3% in 2026Q1, which indicates that the company's massive investment in vertical integration is currently failing to generate returns that exceed the cost of capital, marking a sharp departure from historical compounding performance.
The collapse in ROIC suggests that the company's high fixed-cost base is no longer being leveraged effectively, as the capital intensity required to maintain semiconductor fabrication facilities now outweighs the incremental profit generated by current revenue levels. Investors should monitor whether this trend is a temporary cyclical trough or a structural impairment of the company's long-term ability to create shareholder value through its proprietary manufacturing model.
As reported in financial statements, the cash conversion cycle has expanded to 210 days in 2026Q1, driven primarily by an elevated inventory period of 171 days, which suggests that the company is struggling to turn its vertically integrated production output into cash in a slowing industrial environment.
The lengthening of the cash conversion cycle relative to historical norms indicates that IPGP is carrying significant inventory risk, which may be exacerbated by the rapid pace of technological obsolescence in the laser diode market. This inefficiency in working capital management appears to be a primary drag on free cash flow, limiting the company's flexibility to navigate the current industrial downturn.
While market participants frequently prioritize top-line growth as a primary indicator of health, this metric obscures the underlying margin erosion caused by the company's high fixed-cost structure, making operating margin a far more critical, yet often overlooked, gauge of IPGP's true fundamental stability.
Focusing on revenue growth in a commoditizing market can be misleading, as it ignores the cost of acquiring that revenue through aggressive pricing strategies that compress margins. Analysts should instead prioritize the analysis of operating leverage and unit-cost-per-watt, as these metrics better reflect the sustainability of the company's vertically integrated business model in the face of intensifying global competition.
Includes 30+ ratios · 22 years · Updated daily
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Quick answers to the most common questions about buying IPGP stock.
IPG Photonics Corporation's current P/E ratio is 143.4x. The historical average is 42.0x. This places it at the 100th percentile of its historical range.
IPG Photonics Corporation's current EV/EBITDA is 50.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.7x.
IPG Photonics Corporation's return on equity (ROE) is 1.5%. The historical average is 15.3%.
Based on historical data, IPG Photonics Corporation is trading at a P/E of 143.4x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
IPG Photonics Corporation has 38.0% gross margin and 1.3% operating margin.