Latest Ratios: P/E Ratio 110.0x · EV/EBITDA 32.0x · ROE 5.2%. (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 | $5.8B | $4.4B | $5.5B | $6.1B | $4.9B | $6.3B | $4.2B | $3.1B | $2.2B | $1.8B | $733M |
| Enterprise Value | $5.7B | $4.3B | $5.9B | $6.4B | $5.3B | $6.7B | $4.3B | $3.3B | $2.4B | $1.9B | $751M |
| P/E Ratio → | 110.01 | 80.95 | 86.31 | 83.37 | 65.96 | 125.06 | 94.58 | 76.90 | 44.06 | 44.25 | 33.33 |
| P/S Ratio | 5.87 | 4.45 | 5.81 | 6.88 | 5.67 | 8.93 | 7.14 | 5.02 | 3.64 | 3.38 | 1.91 |
| P/B Ratio | 4.52 | 3.32 | 7.40 | 9.01 | 8.45 | 12.10 | 8.84 | 7.54 | 6.07 | 4.92 | 2.83 |
| P/FCF | 118.92 | 90.18 | 39.04 | 60.61 | 68.59 | 87.09 | 32.49 | 59.87 | 29.80 | 32.50 | 18.64 |
| P/OCF | 89.91 | 68.18 | 34.82 | 50.53 | 53.75 | 66.68 | 30.06 | 49.70 | 24.93 | 27.83 | 15.34 |
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 | — | 4.41 | 6.19 | 7.22 | 6.12 | 9.46 | 7.36 | 5.34 | 3.84 | 3.64 | 1.95 |
| EV / EBITDA | 32.03 | 24.23 | 35.36 | 40.53 | 33.72 | 62.22 | 46.13 | 35.70 | 21.84 | 21.50 | 14.09 |
| EV / EBIT | 49.03 | 37.10 | 47.27 | 51.64 | 49.02 | 81.45 | 72.78 | 46.49 | 29.85 | 29.16 | 18.36 |
| EV / FCF | — | 89.37 | 41.57 | 63.60 | 74.06 | 92.28 | 33.50 | 63.62 | 31.47 | 34.97 | 19.10 |
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 | 41.6% | 41.6% | 44.4% | 45.4% | 44.0% | 42.5% | 41.4% | 41.9% | 42.6% | 42.3% | 42.2% |
| Operating Margin | 11.9% | 11.9% | 11.6% | 12.5% | 12.0% | 9.1% | 9.5% | 8.8% | 11.6% | 11.0% | 8.6% |
| Net Profit Margin | 5.5% | 5.5% | 6.8% | 8.3% | 8.6% | 7.1% | 7.5% | 6.5% | 8.0% | 11.5% | 5.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 5.2% | 5.2% | 9.0% | 11.7% | 13.5% | 10.1% | 10.0% | 10.4% | 13.5% | 19.5% | 8.7% |
| ROA | 3.4% | 3.4% | 4.9% | 5.9% | 6.0% | 4.8% | 5.1% | 5.1% | 6.8% | 10.4% | 5.2% |
| ROIC | 7.4% | 7.4% | 8.0% | 8.5% | 8.3% | 6.4% | 6.9% | 7.5% | 10.8% | 11.2% | 8.7% |
| ROCE | 8.3% | 8.3% | 9.6% | 10.2% | 9.7% | 7.1% | 7.5% | 8.2% | 11.4% | 11.7% | 9.2% |
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 | 0.26 | 0.26 | 0.63 | 0.60 | 0.85 | 0.95 | 0.53 | 0.66 | 0.56 | 0.65 | 0.33 |
| Debt / EBITDA | 1.91 | 1.91 | 2.83 | 2.58 | 3.13 | 4.59 | 2.71 | 2.95 | 1.92 | 2.66 | 1.61 |
| Net Debt / Equity | — | -0.03 | 0.48 | 0.44 | 0.67 | 0.72 | 0.27 | 0.47 | 0.34 | 0.38 | 0.07 |
| Net Debt / EBITDA | -0.22 | -0.22 | 2.15 | 1.91 | 2.49 | 3.50 | 1.38 | 2.10 | 1.16 | 1.52 | 0.34 |
| Debt / FCF | — | -0.81 | 2.53 | 2.99 | 5.47 | 5.19 | 1.00 | 3.75 | 1.67 | 2.48 | 0.46 |
| Interest Coverage | 5.43 | 5.43 | 3.95 | 4.78 | 6.88 | 11.11 | 9.09 | 8.46 | 8.06 | 9.09 | 8.97 |
Net cash position: cash ($381M) exceeds total debt ($342M)
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 | 3.69 | 3.69 | 2.58 | 2.98 | 2.56 | 2.03 | 2.66 | 2.26 | 2.70 | 2.93 | 2.83 |
| Quick Ratio | 2.80 | 2.80 | 1.72 | 1.91 | 1.53 | 1.35 | 1.85 | 1.39 | 1.70 | 2.00 | 1.98 |
| Cash Ratio | 1.79 | 1.79 | 0.68 | 0.75 | 0.61 | 0.64 | 1.09 | 0.59 | 0.79 | 1.02 | 0.97 |
| Asset Turnover | — | 0.54 | 0.68 | 0.72 | 0.69 | 0.58 | 0.68 | 0.72 | 0.85 | 0.72 | 0.90 |
| Inventory Turnover | 3.04 | 3.04 | 3.65 | 3.23 | 2.87 | 3.23 | 3.73 | 3.12 | 3.37 | 3.29 | 3.72 |
| Days Sales Outstanding | — | 68.82 | 58.07 | 57.71 | 58.38 | 59.71 | 46.38 | 53.10 | 49.88 | 57.05 | 60.49 |
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 | 0.9% | 1.2% | 1.2% | 1.2% | 1.5% | 0.8% | 1.1% | 1.3% | 2.3% | 2.3% | 3.0% |
| FCF Yield | 0.8% | 1.1% | 2.6% | 1.6% | 1.5% | 1.1% | 3.1% | 1.7% | 3.4% | 3.1% | 5.4% |
| Buyback Yield | 0.7% | 0.9% | 0.0% | 0.0% | 0.2% | 0.0% | 0.1% | 0.3% | 0.3% | 0.0% | 0.2% |
| Total Shareholder Yield | 0.7% | 0.9% | 0.0% | 0.0% | 0.2% | 0.0% | 0.1% | 0.3% | 0.3% | 0.0% | 0.2% |
| Shares Outstanding | — | $37M | $36M | $36M | $36M | $36M | $36M | $36M | $35M | $35M | $35M |
Acquisition integration and valuation
Based on current market data, Novanta trades at a forward P/E of 43.89, which suggests that investors are pricing in significant future earnings expansion that may be difficult to sustain given the company's historical volatility in net margins and reliance on inorganic growth strategies.
The current P/E multiple of 107.18 appears elevated relative to the broader industrial sector, implying that the market assigns a premium for its medical technology exposure. However, the PEG ratio of 32.52 warrants caution, as it suggests the current valuation may be disconnected from the actual pace of earnings growth.
As reported in financial statements, Novanta's ROIC has remained stagnant between 1.7% and 2.1% over the last ten quarters, indicating that the company's aggressive acquisition strategy has yet to yield the expected compounding returns on invested capital relative to its peers.
The low ROIC suggests that the capital deployed for acquisitions is currently being offset by the high cost of integrating disparate hardware brands. Investors should monitor whether management can improve these returns as the company shifts focus toward operational synergies rather than further expansion.
According to recent SEC filings, Novanta's cash conversion cycle has fluctuated significantly, reaching 124 days in 2026Q1, which highlights the operational challenges of managing long-lead-time inventory within a complex, multi-segment hardware manufacturing business model.
The high days inventory outstanding, which peaked at 123 days in 2023Q4, suggests that the company must maintain substantial buffer stocks to satisfy OEM requirements. This inventory dependence creates persistent pressure on free cash flow and limits the company's overall working capital efficiency.
Based on reported figures, Novanta has successfully reduced its debt-to-equity ratio from 0.84 in 2024Q1 to 0.22 in 2026Q1, signaling a disciplined approach to balance sheet management that provides a significant buffer against potential cyclical downturns in the industrial and semiconductor markets.
The improvement in interest coverage, now at 16.36x, indicates that the company is well-positioned to service its remaining debt obligations. This conservative leverage profile provides management with the necessary flexibility to pursue strategic opportunities without the immediate need for dilutive equity financing.
The P/E ratio is frequently misapplied to Novanta, as it obscures the significant impact of non-cash amortization charges resulting from the company's serial acquisition strategy, which artificially depresses reported net income and makes the business appear less profitable than its cash-generating capacity suggests.
Analysts should instead focus on EV/EBITDA or cash-flow-based metrics to better evaluate the underlying earning power of the consolidated brands. Relying solely on P/E may lead to an inaccurate assessment of the company's valuation relative to its true operational performance.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying NOVT stock.
Novanta Inc.'s current P/E ratio is 110.0x. The historical average is 47.0x. This places it at the 95th percentile of its historical range.
Novanta Inc.'s current EV/EBITDA is 32.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.8x.
Novanta Inc.'s return on equity (ROE) is 5.2%. The historical average is 0.3%.
Based on historical data, Novanta Inc. is trading at a P/E of 110.0x. This is at the 95th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Novanta Inc. has 41.6% gross margin and 11.9% operating margin. Operating margin between 10-20% is typical for established companies.
Novanta Inc.'s Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.