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LAWCS Disco, Inc.
$3.87$248M
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  3. LAW
  4. Financial Ratios

CS Disco, Inc. (LAW) Financial Ratios

Latest Ratios: P/E Ratio -5.4x · EV/EBITDA N/A · ROE -32.2%. (2019–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

LAW Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019
Market Cap$248M$479M$300M$456M$371M$2.1B——
Enterprise Value$229M$459M$257M$306M$179M$1.8B——
P/E Ratio →-5.38———————
P/S Ratio1.583.052.073.312.7518.14——
P/B Ratio1.863.742.042.281.667.72——
P/FCF————————
P/OCF————————

P/E links to full P/E history page with 30-year chart

LAW EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019
EV / Revenue—2.931.772.221.3215.91——
EV / EBITDA————————
EV / EBIT————————
EV / FCF————————

LAW Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019
Gross Margin74.9%74.9%74.2%74.7%74.7%72.8%70.1%70.2%
Operating Margin-30.7%-30.7%-42.6%-36.1%-53.1%-20.8%-32.9%-62.5%
Net Profit Margin-28.3%-28.3%-38.5%-30.5%-52.3%-21.3%-33.4%-61.4%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019
ROE-32.2%-32.2%-32.1%-19.9%-28.7%-28.0%——
ROA-25.1%-25.1%-27.1%-17.3%-26.0%-13.3%-39.8%-83.1%
ROIC-34.0%-34.0%-60.1%-92.0%-236.8%-126.0%——
ROCE-33.4%-33.4%-34.0%-22.6%-28.6%-14.2%-48.1%-113.7%

LAW Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019
Debt / Equity——0.060.050.050.00——
Debt / EBITDA————————
Net Debt / Equity—-0.15-0.29-0.75-0.86-0.95——
Net Debt / EBITDA————————
Debt / FCF————————
Interest Coverage——-98.72-247.26-148.22-43.93-49.00-239.50

Net cash position: cash ($20M) exceeds total debt ($0)

LAW Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019
Current Ratio3.783.786.118.3210.1715.065.953.47
Quick Ratio3.783.786.118.3210.1715.065.953.47
Cash Ratio2.832.835.036.908.9313.704.782.52
Asset Turnover—0.900.800.600.530.400.871.35
Inventory Turnover————————
Days Sales Outstanding—59.6258.2571.3561.3466.2168.8655.34

LAW Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019
Dividend Yield————————
Payout Ratio————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019
Earnings Yield————————
FCF Yield————————
Buyback Yield0.0%0.0%6.7%0.0%0.1%0.0%——
Total Shareholder Yield0.0%0.0%6.7%0.0%0.1%0.0%——
Shares Outstanding—$62M$60M$60M$59M$58M$57M$57M

Key Metrics

Growth RegimeMixed
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowBurning
Top Statement Risk

Liquidity and capital exhaustion

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Distressed Valuation Reflects Growth Uncertainty

According to current market data, LAW trades at a P/S multiple of 1.50, which, when viewed alongside its negative P/E of -5.11, suggests that investors are heavily discounting the company's future growth potential due to persistent operating losses and a lack of clear path to profitability.

The current valuation appears to reflect a 'growth-at-any-cost' discount, as the company's revenue expansion has not yet translated into meaningful bottom-line results. This multiple warrants caution, as it may be pricing in a recovery that remains contingent on successful AI-driven margin expansion rather than established operational performance.

Capital Efficiency Remains Structurally Negative

Based on reported financial figures, LAW's ROIC has consistently remained in negative territory, reaching -7.0% in 2026Q1, which indicates that the company is currently destroying rather than compounding invested capital as it attempts to scale its cloud-native legal platform.

The persistent negative returns on capital suggest that the company's heavy investment in R&D and sales infrastructure has yet to reach an inflection point where returns exceed the cost of capital. Investors should monitor whether the integration of generative AI tools can eventually drive the efficiency gains necessary to reverse this multi-year trend of capital decay.

Working Capital Cycles Indicate Operational Friction

As reported in recent quarterly filings, LAW's asset turnover ratio has stagnated at approximately 0.25, highlighting a persistent inability to generate significant revenue from its existing asset base compared to broader software industry benchmarks.

The low asset turnover suggests that the company's infrastructure is underutilized relative to its high fixed cost base. While the DSO remains within a manageable range, the lack of improvement in asset efficiency implies that the company's current business model requires substantial scale to achieve operational leverage.

Liquidity Buffer Nearing Critical Threshold

According to the latest balance sheet data, LAW's current ratio has declined from over 10.0 in early 2024 to 4.19 in 2026Q1, signaling a rapid depletion of the liquidity buffer that previously provided a cushion against operational volatility.

While a current ratio of 4.19 appears superficially healthy, the absolute decline in cash reserves against a backdrop of ongoing net losses suggests that the company's liquidity position is becoming increasingly fragile. This trend warrants close investigation, as it may necessitate dilutive financing if the company cannot achieve cash-flow neutrality in the near term.

Misapplication of SaaS Revenue Multiples

Investors frequently misapply standard SaaS P/S multiples to LAW, failing to account for the high volatility of its usage-based revenue model, which often includes pass-through costs that inflate headline revenue without contributing to true economic value.

Using a simple P/S multiple obscures the underlying quality of revenue, as the 'DISCO Review' segment is more akin to a professional services business than a high-margin subscription model. Analysts should instead focus on the ratio of subscription-to-usage revenue to better gauge the durability of the company's top-line growth.

Download Financial Ratios Data

Includes 30+ ratios · 7 years · Updated daily

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LAW — Frequently Asked Questions

Quick answers to the most common questions about buying LAW stock.

What is CS Disco, Inc.'s P/E ratio?

CS Disco, Inc.'s current P/E ratio is -5.4x. This places it at the 50th percentile of its historical range.

What is CS Disco, Inc.'s ROE?

CS Disco, Inc.'s return on equity (ROE) is -32.2%. The historical average is -28.2%.

Is LAW stock overvalued?

Based on historical data, CS Disco, Inc. is trading at a P/E of -5.4x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What are CS Disco, Inc.'s profit margins?

CS Disco, Inc. has 74.9% gross margin and -30.7% operating margin.