Latest Ratios: P/E Ratio 26.6x · EV/EBITDA 11.5x · ROE 48.0%. (1995–2024 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $8.1B | $7.9B | $7.6B | $5.6B | $6.5B | $3.9B | $2.5B | $1.6B | $4.6B | $1.2B | $771M |
| Enterprise Value | $11.9B | $11.6B | $11.1B | $8.6B | $14.7B | $12.4B | $11.0B | $10.5B | $12.6B | $9.2B | $8.8B |
| P/E Ratio → | 26.62 | 23.47 | 46.92 | — | 17.73 | — | — | — | — | — | — |
| P/S Ratio | 2.55 | 2.47 | 2.63 | 2.22 | 3.04 | 2.32 | 1.04 | 0.48 | 1.48 | 0.42 | 0.28 |
| P/B Ratio | 14.02 | 12.36 | 9.98 | 4.80 | — | — | — | — | — | — | — |
| P/FCF | 24.06 | 23.26 | 21.94 | — | 12.74 | 11.80 | 9.54 | — | 21.40 | 8.37 | 8.50 |
| P/OCF | 12.87 | 12.44 | 12.94 | — | 9.56 | 8.37 | 4.56 | 4.70 | 9.00 | 2.92 | 1.86 |
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 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.63 | 3.84 | 3.42 | 6.83 | 7.28 | 4.61 | 3.12 | 4.07 | 3.18 | 3.21 |
| EV / EBITDA | 11.52 | 11.26 | 12.35 | 12.41 | 28.96 | 60.66 | 13.24 | 10.99 | 11.67 | 10.62 | — |
| EV / EBIT | 17.74 | 16.22 | 21.68 | 52.45 | 79.95 | — | 51.96 | 40.29 | 33.48 | 52.17 | — |
| EV / FCF | — | 34.27 | 32.02 | — | 28.62 | 37.05 | 42.21 | — | 58.83 | 62.84 | 97.67 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 70.8% | 70.8% | 70.0% | 70.6% | 71.7% | 64.1% | 68.8% | 62.7% | 62.2% | 61.6% | 60.0% |
| Operating Margin | 21.0% | 21.0% | 17.8% | 10.9% | 5.1% | -14.4% | 12.1% | 7.9% | 12.7% | 4.5% | -37.1% |
| Net Profit Margin | 10.5% | 10.5% | 5.6% | 146.3% | 17.2% | -33.5% | -5.4% | -10.5% | -7.9% | -12.3% | -50.5% |
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 48.0% | 48.0% | 16.9% | 316.5% | — | — | — | — | — | — | — |
| ROA | 6.1% | 6.1% | 2.8% | 52.9% | 4.7% | -7.2% | -1.7% | -4.6% | -3.3% | -4.8% | -15.7% |
| ROIC | 11.6% | 11.6% | 9.2% | 4.0% | 1.4% | -3.0% | 3.4% | 3.2% | 4.9% | 1.6% | -10.4% |
| ROCE | 14.0% | 14.0% | 10.1% | 4.4% | 1.6% | -3.5% | 4.1% | 3.8% | 5.9% | 1.9% | -12.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 6.16 | 6.16 | 5.14 | 3.40 | — | — | — | — | — | — | — |
| Debt / EBITDA | 3.81 | 3.81 | 4.36 | 5.70 | 17.22 | 45.89 | 10.62 | 9.46 | 8.16 | 9.34 | — |
| Net Debt / Equity | — | 5.85 | 4.58 | 2.61 | — | — | — | — | — | — | — |
| Net Debt / EBITDA | 3.62 | 3.62 | 3.89 | 4.38 | 16.06 | 41.34 | 10.25 | 9.28 | 7.42 | 9.21 | — |
| Debt / FCF | — | 11.01 | 10.08 | — | 15.88 | 25.25 | 32.67 | — | 37.43 | 54.48 | 89.16 |
| Interest Coverage | 2.28 | 2.28 | 1.60 | 0.83 | 0.23 | -0.49 | 0.49 | 0.44 | 0.64 | 0.20 | -1.54 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.61 | 1.61 | 1.88 | 2.72 | 1.78 | 2.62 | 2.11 | 1.83 | 2.54 | 1.61 | 1.80 |
| Quick Ratio | 1.39 | 1.39 | 1.63 | 2.46 | 1.68 | 2.48 | 1.79 | 1.54 | 2.21 | 1.26 | 1.42 |
| Cash Ratio | 0.27 | 0.27 | 0.61 | 1.47 | 0.60 | 1.12 | 0.41 | 0.22 | 1.07 | 0.17 | 0.20 |
| Asset Turnover | — | 0.59 | 0.52 | 0.42 | 0.27 | 0.21 | 0.31 | 0.44 | 0.40 | 0.41 | 0.36 |
| Inventory Turnover | 5.89 | 5.89 | 4.93 | 4.58 | 6.21 | 5.13 | 3.06 | 5.82 | 4.79 | 4.57 | 4.44 |
| Days Sales Outstanding | — | 66.98 | 63.64 | 66.11 | 71.71 | 94.10 | 115.40 | 77.38 | 81.01 | 78.53 | 86.63 |
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 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.8% | 4.3% | 2.1% | — | 5.6% | — | — | — | — | — | — |
| FCF Yield | 4.2% | 4.3% | 4.6% | — | 7.8% | 8.5% | 10.5% | — | 4.7% | 12.0% | 11.8% |
| Buyback Yield | 5.7% | 5.9% | 2.5% | 7.9% | 0.0% | 0.0% | 0.0% | 1.3% | 0.2% | 0.5% | 0.2% |
| Total Shareholder Yield | 5.7% | 5.9% | 2.5% | 7.9% | 0.0% | 0.0% | 0.0% | 1.3% | 0.2% | 0.5% | 0.2% |
| Shares Outstanding | — | $91M | $93M | $95M | $98M | $95M | $93M | $91M | $89M | $87M | $86M |
High leverage and litigation
Based on recent market data, LNW trades at a forward P/E of 15.89, which appears to discount the company's high debt-to-equity ratio of 6.91 while simultaneously pricing in the potential for margin expansion from its growing digital and iGaming segments relative to historical averages.
The current valuation suggests that investors are balancing the company's transition toward a higher-margin digital content model against the persistent risks associated with its capital-intensive physical gaming business. The discrepancy between the TTM P/E of 26.62 and the forward multiple indicates that the market anticipates significant earnings growth, though this remains contingent on successful product launches and the resolution of ongoing intellectual property disputes.
According to reported financial statements, LNW's ROIC has remained stagnant at approximately 3.2% as of 2025Q3, a figure that highlights the difficulty of compounding returns when a substantial portion of the capital base is burdened by high debt levels and significant goodwill.
While the company has successfully improved its operating margins, the low ROIC suggests that the underlying assets are not yet generating returns that significantly exceed the cost of capital. This trend warrants further investigation into whether the current R&D spend is effectively driving long-term value or if the capital structure is simply too heavy to allow for meaningful shareholder value creation.
As indicated by recent quarterly filings, LNW's cash conversion cycle reached 329 days in 2025Q3, a significant increase from 176 days in 2024Q4, suggesting that the company is facing challenges in managing its inventory and receivables relative to its supplier payment obligations.
The extended CCC appears to be driven by the lumpiness of machine sales and the complexities of managing a global supply chain for physical gaming cabinets. Investors should monitor whether this inefficiency is a temporary byproduct of product launch cycles or a structural issue that could continue to pressure liquidity and free cash flow generation.
Based on the latest balance sheet data, LNW's debt-to-equity ratio has escalated to 6.91, a level that significantly constrains the company's financial flexibility and increases its sensitivity to interest rate fluctuations compared to industry peers with cleaner balance sheets.
The high leverage ratio, combined with an interest coverage ratio of 2.73, suggests that debt service remains manageable but leaves little room for operational error or aggressive capital allocation. The company's decision to prioritize share repurchases despite this leverage profile warrants careful scrutiny, as it may signal management's confidence in future cash flows or a potential misallocation of capital.
As reported in industry analysis, the P/E ratio is frequently misapplied to LNW because it fails to account for the significant non-cash amortization of intangible assets and the volatility inherent in the company's hybrid business model of one-time machine sales and recurring participation revenue.
Investors should instead focus on EV/EBITDA or free cash flow yield to better capture the company's true earning power and cash-generating capacity. Relying solely on P/E obscures the impact of the company's high debt load and the capital-intensive nature of its R&D-heavy gaming segment, which can lead to an inaccurate assessment of the firm's valuation relative to its peers.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying LNW stock.
Light & Wonder, Inc.'s current P/E ratio is 26.6x. The historical average is 33.5x. This places it at the 33th percentile of its historical range.
Light & Wonder, Inc.'s current EV/EBITDA is 11.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.1x.
Light & Wonder, Inc.'s return on equity (ROE) is 48.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 9.6%.
Based on historical data, Light & Wonder, Inc. is trading at a P/E of 26.6x. This is at the 33th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Light & Wonder, Inc. has 70.8% gross margin and 21.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Light & Wonder, Inc.'s Debt/EBITDA ratio is 3.8x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.