Latest Ratios: P/E Ratio 59.1x · EV/EBITDA 56.5x · ROE 23.1%. (1999–2025 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 | $14.9B | $10.8B | $6.3B | $4.4B | $2.6B | $4.4B | $2.0B | $1.1B | $655M | $739M | $362M |
| Enterprise Value | $15.6B | $11.4B | $6.4B | $4.5B | $2.7B | $4.5B | $2.0B | $1.1B | $632M | $711M | $342M |
| P/E Ratio → | 59.06 | 41.26 | 34.25 | 32.10 | 18.56 | 46.96 | 42.79 | 30.76 | 12.05 | 15.90 | 37.60 |
| P/S Ratio | 16.97 | 12.23 | 9.41 | 8.51 | 4.56 | 10.50 | 7.59 | 4.81 | 2.61 | 3.33 | 2.21 |
| P/B Ratio | 11.70 | 8.17 | 6.82 | 5.87 | 4.43 | 9.22 | 5.50 | 3.44 | 2.33 | 3.26 | 2.07 |
| P/FCF | 68.57 | 49.43 | 29.03 | 41.46 | 26.50 | 34.27 | 37.98 | 55.65 | 20.21 | 13.31 | — |
| P/OCF | 60.84 | 43.85 | 26.90 | 35.69 | 21.78 | 33.03 | 33.92 | 26.56 | 18.15 | 11.96 | — |
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 | — | 12.96 | 9.53 | 8.78 | 4.80 | 10.72 | 7.52 | 4.81 | 2.52 | 3.20 | 2.08 |
| EV / EBITDA | 56.51 | 41.38 | 31.27 | 30.62 | 16.64 | 36.78 | 31.68 | 24.36 | 9.28 | 11.12 | 20.38 |
| EV / EBIT | 61.49 | 44.64 | 34.17 | 29.14 | 18.26 | 39.32 | 35.32 | 27.35 | 10.46 | 12.30 | 33.60 |
| EV / FCF | — | 52.38 | 29.39 | 42.74 | 27.88 | 35.01 | 37.65 | 55.73 | 19.50 | 12.81 | — |
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 | 57.6% | 57.6% | 57.6% | 56.6% | 56.5% | 57.0% | 56.8% | 54.2% | 57.8% | 59.1% | 45.9% |
| Operating Margin | 28.8% | 28.8% | 27.9% | 25.5% | 26.3% | 27.0% | 20.6% | 16.2% | 24.1% | 26.0% | 6.2% |
| Net Profit Margin | 29.4% | 29.4% | 27.3% | 26.3% | 24.6% | 22.4% | 17.8% | 15.6% | 21.7% | 20.9% | 5.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 23.1% | 23.1% | 21.9% | 20.4% | 26.4% | 22.0% | 14.0% | 11.8% | 21.4% | 23.1% | 5.7% |
| ROA | 13.8% | 13.8% | 14.6% | 12.9% | 15.7% | 12.7% | 9.1% | 9.6% | 17.6% | 18.5% | 4.5% |
| ROIC | 12.8% | 12.8% | 14.9% | 12.3% | 17.4% | 18.3% | 12.4% | 9.5% | 19.8% | 24.5% | 5.3% |
| ROCE | 16.2% | 16.2% | 20.7% | 15.9% | 21.9% | 20.2% | 11.7% | 11.4% | 23.4% | 28.2% | 5.8% |
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 | 0.65 | 0.65 | 0.25 | 0.33 | 0.42 | 0.47 | 0.58 | 0.11 | — | — | — |
| Debt / EBITDA | 3.11 | 3.11 | 1.15 | 1.64 | 1.50 | 1.82 | 3.35 | 0.75 | — | — | — |
| Net Debt / Equity | — | 0.49 | 0.08 | 0.18 | 0.23 | 0.20 | -0.05 | 0.00 | -0.08 | -0.12 | -0.12 |
| Net Debt / EBITDA | 2.33 | 2.33 | 0.38 | 0.92 | 0.82 | 0.78 | -0.28 | 0.04 | -0.34 | -0.43 | -1.22 |
| Debt / FCF | — | 2.96 | 0.36 | 1.28 | 1.37 | 0.74 | -0.33 | 0.08 | -0.71 | -0.50 | — |
| Interest Coverage | 110.42 | 110.42 | 116.20 | 103.30 | 102.06 | 25.92 | 59.82 | 399.85 | 694.74 | 516.24 | — |
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 | 6.28 | 6.28 | 2.32 | 2.20 | 4.57 | 1.97 | 9.17 | 6.37 | 5.87 | 4.46 | 4.30 |
| Quick Ratio | 5.47 | 5.47 | 1.92 | 1.77 | 3.70 | 1.69 | 8.16 | 5.36 | 5.00 | 3.79 | 3.55 |
| Cash Ratio | 4.67 | 4.67 | 1.51 | 1.37 | 2.79 | 1.42 | 6.96 | 3.93 | 3.66 | 2.86 | 2.33 |
| Asset Turnover | — | 0.37 | 0.48 | 0.46 | 0.58 | 0.52 | 0.41 | 0.56 | 0.75 | 0.78 | 0.75 |
| Inventory Turnover | 2.03 | 2.03 | 1.82 | 1.63 | 2.13 | 2.27 | 1.89 | 2.13 | 2.53 | 2.60 | 3.03 |
| Days Sales Outstanding | — | 62.97 | 76.05 | 78.87 | 70.82 | 60.04 | 85.78 | 83.75 | 77.80 | 67.33 | 94.92 |
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 | 1.7% | 2.4% | 2.9% | 3.1% | 5.4% | 2.1% | 2.3% | 3.3% | 8.3% | 6.3% | 2.7% |
| FCF Yield | 1.5% | 2.0% | 3.4% | 2.4% | 3.8% | 2.9% | 2.6% | 1.8% | 4.9% | 7.5% | — |
| Buyback Yield | 0.2% | 0.3% | 0.5% | 0.0% | 0.8% | 0.0% | 0.6% | 0.7% | 0.7% | 0.0% | 0.3% |
| Total Shareholder Yield | 0.2% | 0.3% | 0.5% | 0.0% | 0.8% | 0.0% | 0.6% | 0.7% | 0.7% | 0.0% | 0.3% |
| Shares Outstanding | — | $33M | $32M | $32M | $32M | $30M | $29M | $29M | $29M | $29M | $28M |
Geopolitical and cyclical exposure
According to current market data, Nova trades at a forward P/E of 46.66, which suggests that investors are pricing in significant future earnings expansion relative to the broader semiconductor capital equipment sector, despite the recent deceleration in top-line growth observed in the most recent quarterly filings.
The current P/S ratio of 17.63 indicates a substantial valuation premium, likely driven by the market's anticipation of Nova's role in the Gate-All-Around transistor transition. While this multiple appears elevated compared to historical averages, it may be justified if the company successfully captures higher-margin software and materials metrology revenue, though investors should monitor whether this growth trajectory remains sustainable.
Based on reported figures, Nova's ROIC has fluctuated between 2.6% and 4.6% over the last ten quarters, indicating that the company is currently struggling to generate returns on invested capital that significantly exceed the typical cost of capital for industrial technology firms in this sector.
The relatively low ROIC suggests that the rapid expansion of the asset base, including recent acquisitions, has yet to yield a proportional increase in operating returns. This warrants further investigation into whether the company's capital allocation strategy is effectively driving long-term value creation or if the current investment phase is temporarily suppressing efficiency metrics.
As reported in financial statements, Nova's cash conversion cycle has remained elevated, peaking at 236 days in 2023Q4 and settling at 181 days in 2026Q1, which highlights the inherent difficulty in managing inventory and receivables within a highly customized, project-based semiconductor equipment manufacturing business model.
The high days inventory outstanding, consistently exceeding 160 days, suggests that Nova carries significant inventory to support its complex product offerings and long lead-time components. This reliance on working capital appears to be a structural feature of the business, which may limit free cash flow generation during periods of slowing demand.
According to recent balance sheet data, Nova maintains a debt-to-EBITDA ratio of 10.44 as of 2026Q1, which, while higher than historical lows, suggests that the company retains sufficient financial flexibility to navigate cyclical downturns without immediate pressure on its core operational liquidity or debt service obligations.
The increase in leverage appears to be a deliberate choice to support inorganic growth and R&D initiatives rather than a sign of financial distress. Investors should monitor the interest coverage trends, as any sustained decline in operating income could make the current debt load appear more burdensome in a higher-rate environment.
The P/E ratio is frequently misapplied to Nova's business model because it fails to account for the lumpy nature of revenue recognition and the significant non-cash impact of stock-based compensation, which often obscures the company's true underlying cash-generating capacity and operational profitability.
Analysts should prioritize EV/EBITDA or free cash flow yield over P/E to better capture the company's performance, as these metrics are less distorted by the accounting nuances of the semiconductor equipment industry. Relying solely on P/E may lead to an incomplete assessment of the company's valuation, particularly during periods of high R&D investment or acquisition-related expenses.
Includes 30+ ratios · 27 years · Updated daily
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Quick answers to the most common questions about buying NVMI stock.
Nova Ltd.'s current P/E ratio is 59.1x. The historical average is 27.4x. This places it at the 100th percentile of its historical range.
Nova Ltd.'s current EV/EBITDA is 56.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 21.7x.
Nova Ltd.'s return on equity (ROE) is 23.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 4.7%.
Based on historical data, Nova Ltd. is trading at a P/E of 59.1x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Nova Ltd. has 57.6% gross margin and 28.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Nova Ltd.'s Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.