Latest Ratios: P/E Ratio -18.8x · EV/EBITDA N/A · ROE -6.3%. (2002–2025 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 | $587M | $709M | $827M | $428M | $525M | $906M | $1.2B | $783M | $1.7B | $1.9B | $1.8B |
| Enterprise Value | $428M | $550M | $571M | $293M | $424M | $670M | $933M | $628M | $1.5B | $1.7B | $1.6B |
| P/E Ratio → | -18.82 | — | 66.36 | — | — | 18.37 | 21.38 | 30.26 | — | 99.58 | 24.16 |
| P/S Ratio | 0.85 | 1.02 | 1.23 | 0.58 | 0.56 | 0.78 | 0.99 | 0.78 | 1.63 | 1.38 | 1.38 |
| P/B Ratio | 1.24 | 1.42 | 1.53 | 0.80 | 0.85 | 1.30 | 1.81 | 1.29 | 2.75 | 2.66 | 2.30 |
| P/FCF | — | — | 5.31 | 8.38 | — | — | 7.29 | — | — | 26.29 | 17.59 |
| P/OCF | 365.20 | 441.25 | 5.02 | 7.53 | — | — | 6.87 | 57.93 | — | 22.18 | 15.92 |
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 | — | 0.79 | 0.85 | 0.40 | 0.45 | 0.57 | 0.74 | 0.63 | 1.44 | 1.24 | 1.20 |
| EV / EBITDA | — | — | 30.51 | — | — | 8.32 | 9.88 | 13.77 | 26.46 | 15.93 | 10.91 |
| EV / EBIT | — | — | — | — | — | 10.05 | 12.35 | 23.98 | 39.34 | 40.85 | 13.84 |
| EV / FCF | — | — | 3.67 | 5.74 | — | — | 5.46 | — | — | 23.54 | 15.28 |
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 | 36.2% | 36.2% | 29.1% | 33.6% | 26.9% | 31.3% | 29.6% | 29.5% | 32.3% | 28.1% | 31.0% |
| Operating Margin | -5.1% | -5.1% | 1.8% | -4.5% | -8.9% | 5.7% | 6.0% | 2.6% | 3.7% | 6.2% | 8.6% |
| Net Profit Margin | -4.7% | -4.7% | 1.8% | -14.1% | -7.4% | 4.2% | 4.6% | 2.6% | -0.2% | 1.4% | 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 | -6.3% | -6.3% | 2.3% | -18.1% | -10.5% | 7.1% | 9.0% | 4.2% | -0.4% | 2.5% | 10.1% |
| ROA | -3.9% | -3.9% | 1.5% | -11.2% | -6.6% | 4.5% | 5.7% | 2.6% | -0.2% | 1.6% | 6.8% |
| ROIC | -8.4% | -8.4% | 2.7% | -5.4% | -12.7% | 11.9% | 13.6% | 4.5% | 6.1% | 12.0% | 15.8% |
| ROCE | -6.0% | -6.0% | 2.1% | -5.3% | -11.8% | 9.0% | 10.8% | 4.0% | 5.4% | 10.7% | 14.6% |
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 | 0.10 | 0.10 | 0.06 | 0.08 | 0.07 | 0.04 | 0.05 | 0.06 | — | — | — |
| Debt / EBITDA | — | — | 1.64 | — | — | 0.35 | 0.37 | 0.76 | — | — | — |
| Net Debt / Equity | — | -0.32 | -0.47 | -0.25 | -0.16 | -0.34 | -0.45 | -0.26 | -0.32 | -0.28 | -0.30 |
| Net Debt / EBITDA | — | — | -13.66 | — | — | -2.93 | -3.30 | -3.41 | -3.49 | -1.86 | -1.65 |
| Debt / FCF | — | — | -1.64 | -2.65 | — | — | -1.82 | — | — | -2.75 | -2.31 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($210M) exceeds total debt ($51M)
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 | 2.69 | 2.69 | 2.81 | 2.83 | 2.41 | 2.59 | 2.45 | 2.49 | 2.23 | 2.39 | 2.70 |
| Quick Ratio | 1.99 | 1.99 | 2.20 | 1.89 | 1.55 | 1.66 | 1.98 | 1.70 | 1.60 | 1.81 | 2.00 |
| Cash Ratio | 1.29 | 1.29 | 1.51 | 1.07 | 0.66 | 0.80 | 0.97 | 0.66 | 0.71 | 0.78 | 1.03 |
| Asset Turnover | — | 0.83 | 0.79 | 0.87 | 0.91 | 1.08 | 1.13 | 1.04 | 1.01 | 1.16 | 1.12 |
| Inventory Turnover | 2.51 | 2.51 | 2.94 | 1.98 | 2.28 | 2.54 | 5.13 | 2.99 | 2.94 | 4.11 | 3.70 |
| Days Sales Outstanding | — | 74.78 | 84.62 | 91.18 | 108.62 | 81.61 | 98.01 | 101.29 | 104.68 | 66.19 | 86.24 |
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 | — | — | 1.5% | — | — | 5.4% | 4.7% | 3.3% | — | 1.0% | 4.1% |
| FCF Yield | — | — | 18.8% | 11.9% | — | — | 13.7% | — | — | 3.8% | 5.7% |
| Buyback Yield | 8.6% | 7.1% | 4.4% | 0.7% | 5.6% | 9.1% | 2.3% | 10.5% | 2.2% | 6.2% | 2.3% |
| Total Shareholder Yield | 8.6% | 7.1% | 4.4% | 0.7% | 5.6% | 9.1% | 2.3% | 10.5% | 2.2% | 6.2% | 2.3% |
| Shares Outstanding | — | $29M | $30M | $29M | $29M | $31M | $31M | $32M | $33M | $33M | $34M |
Structural margin erosion risk
Based on recent market data, NTGR trades at a price-to-sales ratio of 0.90, suggesting that investors are pricing the firm closer to its liquidation value rather than as a growth-oriented technology entity, given the persistent negative earnings and the lack of a clear path to profitability.
The forward P/E of 114.20 indicates that the market expects significant earnings volatility or a prolonged recovery period, which is typical for hardware firms undergoing a painful pivot. Investors should monitor whether the current valuation floor holds as the company attempts to shift its revenue mix toward higher-margin SMB software-defined networking.
As reported in financial statements, NTGR's ROIC has trended into negative territory, reaching -1.8% in 2026Q1, which highlights a fundamental inability to generate returns above the cost of capital while the company navigates a shrinking revenue base and intense retail competition.
The sharp decline from the 22.8% ROIC observed in 2024Q3 suggests that the company's recent capital allocation has failed to produce accretive growth. This trend warrants further investigation into whether the current R&D spend on Pro AV switches will eventually yield the necessary margin expansion to restore positive returns.
According to quarterly filings, the cash conversion cycle has remained elevated at 199 days in 2026Q1, primarily driven by high days inventory outstanding of 161 days, which suggests that the company is struggling to manage its retail channel inventory effectively in a cooling demand environment.
The persistent length of the cash conversion cycle indicates that capital is being trapped in unsold hardware, increasing the risk of future inventory write-downs. This inefficiency is particularly concerning given the company's reliance on third-party manufacturing, which limits its ability to quickly adjust supply to match actual sell-through demand.
Based on the latest balance sheet, NTGR maintains a debt-to-equity ratio of 0.08, providing a significant liquidity buffer that protects the firm from interest rate volatility, even as the core business continues to report negative operating margins and inconsistent cash flow generation.
While the lack of debt is a structural strength, it appears to be a defensive posture rather than a strategic one, as the company has not yet deployed this capital to successfully pivot its business model. Investors should monitor whether this cash position is used to fund a turnaround or if it continues to be depleted by share repurchases that do not address the underlying operational decline.
Analysts frequently misapply standard consumer hardware valuation multiples to NTGR, which obscures the potential value of its specialized Pro AV switching business that operates with higher barriers to entry than the commoditized consumer router segment, according to industry-specific competitive analysis.
By treating the entire company as a declining retail brand, the market may be ignoring the intellectual property and sticky customer relationships within the SMB segment. A more appropriate approach would be to sum-of-the-parts valuation, separating the low-margin retail business from the higher-moat Pro AV infrastructure segment.
Includes 30+ ratios · 24 years · Updated daily
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Quick answers to the most common questions about buying NTGR stock.
NETGEAR, Inc.'s current P/E ratio is -18.8x. The historical average is 39.3x.
NETGEAR, Inc.'s return on equity (ROE) is -6.3%. The historical average is 6.4%.
Based on historical data, NETGEAR, Inc. is trading at a P/E of -18.8x. Compare with industry peers and growth rates for a complete picture.
NETGEAR, Inc. has 36.2% gross margin and -5.1% operating margin.