Latest Ratios: P/E Ratio -7.0x · EV/EBITDA N/A · ROE -349.2%. (2023–2025 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 |
|---|---|---|---|---|
| Market Cap | $4.9B | $5.8B | — | — |
| Enterprise Value | $5.2B | $6.1B | — | — |
| P/E Ratio → | -6.98 | — | — | — |
| P/S Ratio | 6.96 | 8.13 | — | — |
| P/B Ratio | 24.39 | 29.64 | — | — |
| P/FCF | 325.74 | 380.55 | — | — |
| P/OCF | 129.64 | 151.46 | — | — |
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 |
|---|---|---|---|---|
| EV / Revenue | — | 8.53 | — | — |
| EV / EBITDA | — | — | — | — |
| EV / EBIT | — | — | — | — |
| EV / FCF | — | 399.32 | — | — |
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 |
|---|---|---|---|---|
| Gross Margin | 68.1% | 68.1% | 64.6% | 59.8% |
| Operating Margin | -92.0% | -92.0% | -47.5% | -76.9% |
| Net Profit Margin | -95.8% | -95.8% | -65.9% | -84.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| ROE | -349.2% | -349.2% | — | — |
| ROA | -51.6% | -51.6% | -43.4% | -44.6% |
| ROIC | -199.8% | -199.8% | -384.7% | -264.7% |
| ROCE | -91.7% | -91.7% | -75.4% | -90.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Debt / Equity | 3.88 | 3.88 | — | — |
| Debt / EBITDA | — | — | — | — |
| Net Debt / Equity | — | 1.46 | — | — |
| Net Debt / EBITDA | — | — | — | — |
| Debt / FCF | — | 18.77 | — | — |
| Interest Coverage | — | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Current Ratio | 2.13 | 2.13 | 1.00 | 1.12 |
| Quick Ratio | 2.12 | 2.12 | 0.99 | 1.11 |
| Cash Ratio | 1.70 | 1.70 | 0.47 | 0.67 |
| Asset Turnover | — | 0.40 | 0.63 | 0.53 |
| Inventory Turnover | 46.17 | 46.17 | 33.03 | 22.40 |
| Days Sales Outstanding | — | 81.48 | 132.30 | 102.22 |
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 |
|---|---|---|---|---|
| Dividend Yield | — | — | — | — |
| Payout Ratio | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Earnings Yield | — | — | — | — |
| FCF Yield | 0.3% | 0.3% | — | — |
| Buyback Yield | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $388M | $328M | $328M |
Unsustainable Cash Burn Rate
Based on current market data, Netskope trades at a price-to-sales multiple of 5.86x, which appears to reflect aggressive growth expectations despite the company's negative TTM P/E of -5.88 and the absence of a clear path to GAAP profitability in the near-term horizon.
The valuation multiple suggests that investors are pricing the firm as a high-growth SASE leader, yet the lack of a positive forward P/E ratio makes traditional valuation metrics difficult to apply. This premium pricing warrants caution, as any deceleration in revenue growth could lead to a significant multiple compression given the company's current inability to generate positive net income.
According to recent financial disclosures, Netskope's ROIC has remained deeply negative, reaching -13.6% in 2026Q1, which highlights the structural difficulty of generating positive returns on invested capital while simultaneously funding a massive, proprietary global network infrastructure expansion.
The persistent negative ROIC indicates that the company is currently destroying shareholder value on an incremental basis to fund its growth. Until the firm can achieve sufficient scale to leverage its NewEdge infrastructure, these returns are unlikely to turn positive, suggesting that the current capital allocation strategy is heavily skewed toward market share capture over efficiency.
As reported in quarterly filings, Netskope's cash conversion cycle has shown extreme volatility, swinging from 41 days in 2026Q1 to a massive 264 days in 2025Q1, which suggests significant inconsistencies in managing receivables and supplier payment terms during its rapid scaling phase.
The erratic nature of the cash conversion cycle implies that the company lacks a mature working capital management process, which is common for firms prioritizing rapid customer acquisition. Investors should monitor whether these metrics stabilize, as a high and volatile CCC often masks underlying operational friction that could exacerbate liquidity pressures.
Based on the latest balance sheet data, Netskope's debt-to-equity ratio of 4.25 as of 2026Q1 indicates a highly leveraged capital structure that leaves the firm with limited room for error in a high-interest-rate environment where debt service costs could become prohibitive.
The reliance on debt to fund operations, combined with negative operating margins, creates a precarious financial position that may necessitate dilutive equity financing. This leverage profile is significantly more aggressive than peers like Palo Alto Networks, suggesting that Netskope's solvency is highly sensitive to its ability to maintain access to capital markets.
The most commonly misapplied metric for Netskope is the standard SaaS EV/Sales multiple, which obscures the company's structural reality as an infrastructure-heavy provider rather than a pure-play software firm, thereby overstating its long-term margin potential compared to cloud-native peers.
Because Netskope owns and operates its NewEdge network, its gross margins are structurally capped by physical infrastructure costs, unlike pure software companies that benefit from high-margin public cloud delivery. Analysts should instead focus on free cash flow margins and infrastructure-adjusted unit economics to avoid overvaluing the company based on software-only benchmarks.
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Quick answers to the most common questions about buying NTSK stock.
Netskope, Inc. Class A Common Stock's current P/E ratio is -7.0x. This places it at the 50th percentile of its historical range.
Netskope, Inc. Class A Common Stock's return on equity (ROE) is -349.2%. The historical average is -349.2%.
Based on historical data, Netskope, Inc. Class A Common Stock is trading at a P/E of -7.0x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Netskope, Inc. Class A Common Stock has 68.1% gross margin and -92.0% operating margin.