Latest Ratios: P/E Ratio 387.2x · EV/EBITDA 104.1x · ROE 1.3%. (1998–2025 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 | $9.4B | $13.4B | $4.0B | $2.6B | $1.3B | $2.5B | $3.3B | $2.0B | $1.5B | $948M | $454M |
| Enterprise Value | $9.1B | $13.1B | $4.0B | $2.9B | $1.5B | $2.5B | $3.2B | $2.1B | $1.6B | $1.1B | $817M |
| P/E Ratio → | 387.23 | 597.69 | 241.09 | — | — | — | 40.94 | 163.73 | — | — | — |
| P/S Ratio | 7.01 | 9.98 | 3.52 | 2.55 | 1.46 | 3.06 | 4.35 | 2.74 | 2.42 | 1.26 | 0.68 |
| P/B Ratio | 4.36 | 6.74 | 2.96 | 2.65 | 1.38 | 2.59 | 3.46 | 3.34 | 2.88 | 1.85 | 1.64 |
| P/FCF | — | — | — | 206.70 | — | — | 304.29 | 531.54 | — | — | — |
| P/OCF | — | — | 80.52 | 40.58 | — | 80.62 | 69.87 | 65.56 | 82.59 | — | — |
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 | — | 9.70 | 3.48 | 2.79 | 1.70 | 3.05 | 4.31 | 2.98 | 2.60 | 1.48 | 1.22 |
| EV / EBITDA | 104.12 | 150.17 | 48.88 | 38.18 | 40.21 | 39.51 | 50.93 | 29.23 | 33.26 | 67.78 | 194.41 |
| EV / EBIT | 327.03 | 293.60 | 94.83 | 88.24 | — | 88.02 | 106.04 | 54.51 | 53.02 | — | — |
| EV / FCF | — | — | — | 226.13 | — | — | 301.27 | 577.48 | — | — | — |
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 | 22.1% | 22.1% | 25.3% | 25.9% | 25.2% | 27.7% | 27.2% | 26.5% | 27.5% | 26.2% | 23.0% |
| Operating Margin | 2.1% | 2.1% | 2.6% | 3.0% | -0.3% | 3.4% | 3.9% | 5.3% | 4.9% | -0.8% | -2.8% |
| Net Profit Margin | 1.6% | 1.6% | 1.4% | -0.9% | -4.1% | -0.2% | 10.6% | 1.7% | -0.6% | -5.7% | -9.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 1.3% | 1.3% | 1.4% | -0.9% | -3.9% | -0.2% | 10.4% | 2.3% | -0.7% | -10.8% | -22.8% |
| ROA | 1.0% | 1.0% | 0.9% | -0.6% | -2.3% | -0.1% | 5.8% | 1.1% | -0.3% | -4.3% | -6.5% |
| ROIC | 1.4% | 1.4% | 1.7% | 1.9% | -0.2% | 2.3% | 2.6% | 4.1% | 3.5% | -0.7% | -2.1% |
| ROCE | 1.5% | 1.5% | 1.9% | 2.3% | -0.2% | 2.0% | 2.5% | 4.1% | 3.6% | -0.7% | -2.5% |
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 | 0.09 | 0.09 | 0.21 | 0.32 | 0.32 | 0.35 | 0.37 | 0.58 | 0.57 | 0.58 | 1.56 |
| Debt / EBITDA | 2.06 | 2.06 | 3.49 | 4.24 | 7.94 | 5.42 | 5.51 | 4.69 | 6.09 | 17.95 | 102.86 |
| Net Debt / Equity | — | -0.19 | -0.03 | 0.25 | 0.23 | -0.01 | -0.03 | 0.29 | 0.21 | 0.32 | 1.31 |
| Net Debt / EBITDA | -4.38 | -4.38 | -0.58 | 3.28 | 5.80 | -0.16 | -0.51 | 2.33 | 2.31 | 9.99 | 86.40 |
| Debt / FCF | — | — | — | 19.42 | — | — | -3.02 | 45.95 | — | — | — |
| Interest Coverage | 4.24 | 4.24 | 2.74 | 1.51 | -0.80 | 1.19 | 1.29 | 1.67 | 1.40 | -0.96 | -0.49 |
Net cash position: cash ($561M) exceeds total debt ($180M)
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 | 4.06 | 4.06 | 2.94 | 2.03 | 2.49 | 3.43 | 3.87 | 2.86 | 3.00 | 2.49 | 1.90 |
| Quick Ratio | 3.46 | 3.46 | 2.39 | 1.50 | 1.95 | 3.01 | 3.46 | 2.52 | 2.72 | 2.23 | 1.62 |
| Cash Ratio | 1.80 | 1.80 | 1.11 | 0.25 | 0.35 | 1.58 | 1.93 | 0.94 | 1.11 | 0.69 | 0.35 |
| Asset Turnover | — | 0.55 | 0.58 | 0.64 | 0.58 | 0.51 | 0.48 | 0.60 | 0.61 | 0.73 | 0.70 |
| Inventory Turnover | 5.57 | 5.57 | 5.24 | 4.92 | 5.36 | 6.39 | 6.71 | 8.63 | 9.58 | 11.00 | 9.30 |
| Days Sales Outstanding | — | 123.96 | 103.98 | 115.82 | 133.40 | 128.01 | 132.88 | 134.35 | 140.21 | 103.06 | 127.73 |
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 | 0.3% | 0.2% | 0.4% | — | — | — | 2.4% | 0.6% | — | — | — |
| FCF Yield | — | — | — | 0.5% | — | — | 0.3% | 0.2% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 1.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 1.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 0.0% |
| Shares Outstanding | — | $173M | $151M | $130M | $127M | $128M | $119M | $109M | $106M | $90M | $61M |
Margin Dilution from Scale
According to current market data, KTOS trades at a forward P/E of 61.77, which significantly exceeds the valuation multiples of traditional defense contractors, suggesting that investors are pricing in a high-growth trajectory for its unmanned systems segment rather than the stable cash flows of legacy defense peers.
The elevated EV/EBITDA multiple of 97.38 indicates that the market is assigning a substantial premium to the company's potential to capture future programs of record. This valuation appears to hinge on the successful transition of the XQ-58 Valkyrie from development to full-scale production, as current earnings multiples are difficult to justify based on existing profitability levels.
Based on reported financial figures, KTOS has struggled to generate meaningful returns, with ROIC hovering at a marginal 0.2% in 2026Q1, a trend that reflects the heavy burden of self-funded research and development costs relative to the company's current operating income generation.
The low ROIC suggests that the capital deployed into the unmanned systems segment has yet to reach an inflection point where it contributes positively to shareholder value. Investors should monitor whether the company can improve these returns as it moves toward higher-volume production, as current levels remain well below the typical cost of capital for industrial firms.
As reported in recent financial statements, the company's cash conversion cycle remains elevated, with DSO reaching 121 days in 2026Q1, which suggests that KTOS faces significant delays in collecting payments from government clients compared to the more efficient working capital cycles observed in broader industrial peers.
The extended DSO and the volatility in inventory turnover indicate that the company's operational efficiency is heavily influenced by the timing of milestone payments on complex defense contracts. This reliance on long-cycle government receivables may continue to pressure liquidity and necessitate the high cash balances the company currently maintains.
While the book-to-bill ratio is a standard metric in the defense industry, it is frequently misapplied to KTOS because it obscures the distinction between long-term, low-margin development contracts and the high-volume production orders required to achieve sustainable profitability in the attritable drone market.
Investors should instead focus on the conversion rate of these bookings into actual revenue and the associated gross margin profile of those specific programs. Relying solely on the book-to-bill ratio may lead to an overestimation of near-term earnings power, as it fails to account for the significant lag between contract award and profitable delivery.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying KTOS stock.
Kratos Defense & Security Solutions, Inc.'s current P/E ratio is 387.2x. The historical average is 70.6x. This places it at the 100th percentile of its historical range.
Kratos Defense & Security Solutions, Inc.'s current EV/EBITDA is 104.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 33.2x.
Kratos Defense & Security Solutions, Inc.'s return on equity (ROE) is 1.3%. The historical average is -6.4%.
Based on historical data, Kratos Defense & Security Solutions, Inc. is trading at a P/E of 387.2x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Kratos Defense & Security Solutions, Inc. has 22.1% gross margin and 2.1% operating margin.
Kratos Defense & Security Solutions, Inc.'s Debt/EBITDA ratio is 2.1x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.