Latest Ratios: P/E Ratio 103.7x · EV/EBITDA 42.4x · ROE 6.4%. (2022–2025 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 |
|---|---|---|---|---|---|
| Market Cap | $7.3B | $6.5B | $6.8B | — | — |
| Enterprise Value | $7.2B | $6.4B | $7.0B | — | — |
| P/E Ratio → | 103.73 | 90.67 | 307.96 | — | — |
| P/S Ratio | 14.68 | 13.14 | 16.82 | — | — |
| P/B Ratio | 6.35 | 5.55 | 6.23 | — | — |
| P/FCF | 73.39 | 65.70 | 146.99 | — | — |
| P/OCF | 64.87 | 58.08 | 123.27 | — | — |
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 |
|---|---|---|---|---|---|
| EV / Revenue | — | 13.00 | 17.40 | — | — |
| EV / EBITDA | 42.37 | 37.88 | 53.62 | — | — |
| EV / EBIT | 60.49 | 60.71 | 86.34 | — | — |
| EV / FCF | — | 64.98 | 152.03 | — | — |
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 |
|---|---|---|---|---|---|
| Gross Margin | 52.7% | 52.7% | 49.4% | 48.6% | 46.6% |
| Operating Margin | 24.0% | 24.0% | 21.8% | 21.9% | 16.5% |
| Net Profit Margin | 14.5% | 14.5% | 5.5% | -1.5% | -1.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| ROE | 6.4% | 6.4% | 3.0% | -1.1% | -0.6% |
| ROA | 4.1% | 4.1% | 1.8% | -0.5% | -0.2% |
| ROIC | 7.4% | 7.4% | 5.8% | 5.7% | 3.4% |
| ROCE | 7.1% | 7.1% | 7.3% | 7.1% | 4.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | 0.26 | 1.30 | 1.18 |
| Debt / EBITDA | 0.08 | 0.08 | 2.19 | 5.07 | 6.76 |
| Net Debt / Equity | — | -0.06 | 0.21 | 1.25 | 1.09 |
| Net Debt / EBITDA | -0.42 | -0.42 | 1.78 | 4.87 | 6.28 |
| Debt / FCF | — | -0.71 | 5.04 | 771.71 | 86.38 |
| Interest Coverage | 4.14 | 4.14 | 1.56 | 1.04 | 0.94 |
Net cash position: cash ($85M) exceeds total debt ($14M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Current Ratio | 4.70 | 4.70 | 5.28 | 3.32 | 3.90 |
| Quick Ratio | 2.98 | 2.98 | 3.06 | 1.80 | 2.31 |
| Cash Ratio | 1.34 | 1.34 | 1.29 | 0.42 | 0.92 |
| Asset Turnover | — | 0.24 | 0.28 | 0.30 | 0.24 |
| Inventory Turnover | 2.15 | 2.15 | 2.20 | 2.09 | 2.10 |
| Days Sales Outstanding | — | 64.74 | 58.41 | 68.29 | 63.33 |
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 |
|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Earnings Yield | 1.0% | 1.1% | 0.3% | — | — |
| FCF Yield | 1.4% | 1.5% | 0.7% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $96M | $92M | $88M | $77M |
Acquisition integration execution risk
According to current market data, LOAR trades at a TTM P/E of 105.52 and an EV/EBITDA of 43.10, suggesting that investors are pricing in significant future earnings expansion that far exceeds the multiples observed in broader industrial peers or more mature aerospace component aggregators.
The elevated valuation multiples appear to reflect the market's confidence in the company's ability to maintain its high-growth acquisition strategy. Investors should monitor whether the forward P/E of 63.30 remains sustainable as the company scales and faces the inevitable law of large numbers in its niche target market.
Based on reported figures, LOAR's ROIC has remained in a narrow range between 1.2% and 2.4% over the last ten quarters, indicating that the rapid accumulation of goodwill and intangible assets from acquisitions is currently suppressing the company's ability to generate high returns on its total invested capital.
While the underlying business units likely command high returns, the consolidated ROIC is heavily diluted by the purchase accounting associated with the company's aggressive roll-up strategy. This trend warrants further investigation into whether the company can eventually drive higher returns as it shifts from an acquisition-heavy phase to an operational optimization phase.
As reported in financial statements, the company's cash conversion cycle remains elevated at 165 days in 2026Q1, primarily driven by a high days inventory outstanding of 136 days, which reflects the necessity of maintaining deep aftermarket parts availability to support its proprietary aerospace component business model.
The extended CCC suggests that the company's growth strategy requires significant working capital investment, which may act as a persistent drag on free cash flow generation. Investors should monitor whether management can improve inventory turnover as the installed base of components matures and demand patterns become more predictable.
The P/E ratio is frequently misapplied to LOAR's business model because it fails to account for the significant non-cash amortization of intangible assets that artificially depresses reported net income, thereby obscuring the company's true underlying earning power and cash-generating capability in the eyes of many retail investors.
Analysts should instead focus on EV/EBITDA or P/FCF to better capture the cash-generative nature of the firm's proprietary aftermarket business. Relying on P/E in a serial-acquirer model risks misinterpreting accounting-driven earnings volatility as a fundamental deterioration in the company's competitive moat or operational performance.
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Quick answers to the most common questions about buying LOAR stock.
Loar Holdings Inc.'s current P/E ratio is 103.7x. The historical average is 90.7x. This places it at the 100th percentile of its historical range.
Loar Holdings Inc.'s current EV/EBITDA is 42.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 45.8x.
Loar Holdings Inc.'s return on equity (ROE) is 6.4%. The historical average is 1.9%.
Based on historical data, Loar Holdings Inc. is trading at a P/E of 103.7x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Loar Holdings Inc. has 52.7% gross margin and 24.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Loar Holdings Inc.'s Debt/EBITDA ratio is 0.1x, indicating low leverage. A ratio below 2x is generally considered financially healthy.