Latest Ratios: P/E Ratio 22.6x · EV/EBITDA 12.9x · ROE 8.2%. (1996–2025 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 | $27.2B | $26.1B | $24.0B | $20.0B | $21.5B | $23.0B | $21.7B | $26.4B | $20.1B | $21.3B | $23.2B |
| Enterprise Value | $45.4B | $44.4B | $40.5B | $35.3B | $35.4B | $30.6B | $37.1B | $48.7B | $41.5B | $42.1B | $42.1B |
| P/E Ratio → | 22.57 | 21.89 | 27.05 | 27.10 | 28.65 | — | 14.76 | 15.14 | 10.98 | 18.87 | 12.20 |
| P/S Ratio | 3.00 | 2.89 | 2.84 | 2.41 | 2.72 | 3.98 | 3.96 | 4.72 | 2.58 | 2.86 | 3.08 |
| P/B Ratio | 1.81 | 1.75 | 1.71 | 1.44 | 1.55 | 1.68 | 1.62 | 2.03 | 1.72 | 1.98 | 2.34 |
| P/FCF | — | — | — | — | — | 2.25 | 45.58 | — | — | — | — |
| P/OCF | 10.33 | 9.93 | 10.26 | 11.38 | 12.45 | 10.13 | 7.90 | 10.89 | 7.12 | 8.64 | 8.02 |
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 | — | 4.91 | 4.79 | 4.24 | 4.48 | 5.30 | 6.78 | 8.69 | 5.33 | 5.65 | 5.60 |
| EV / EBITDA | 12.85 | 12.55 | 13.08 | 11.90 | 13.58 | 12.03 | 13.92 | 19.21 | 10.31 | 10.50 | 10.67 |
| EV / EBIT | 21.32 | 19.46 | 21.85 | 22.19 | 24.79 | 21.28 | 23.37 | 31.60 | 12.77 | 14.95 | 12.24 |
| EV / FCF | — | — | — | — | — | 2.99 | 77.97 | — | — | — | — |
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 | 39.1% | 39.1% | 40.1% | 39.4% | 36.5% | 46.9% | 50.9% | 47.5% | 54.7% | 56.4% | 55.4% |
| Operating Margin | 23.6% | 23.6% | 20.6% | 19.6% | 17.4% | 24.6% | 29.0% | 27.2% | 36.6% | 39.0% | 39.1% |
| Net Profit Margin | 13.1% | 13.1% | 10.5% | 8.9% | 9.6% | -25.6% | 26.8% | 31.2% | 23.5% | 15.1% | 25.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.2% | 8.2% | 6.3% | 5.3% | 5.5% | -10.9% | 11.1% | 14.2% | 16.3% | 10.9% | 19.2% |
| ROA | 2.7% | 2.7% | 2.2% | 1.9% | 2.1% | -3.6% | 3.1% | 3.9% | 4.3% | 2.8% | 4.9% |
| ROIC | 5.0% | 5.0% | 4.4% | 4.3% | 4.2% | 4.3% | 3.7% | 3.4% | 6.6% | 7.2% | 7.6% |
| ROCE | 5.4% | 5.4% | 4.7% | 4.7% | 4.2% | 4.5% | 4.3% | 3.8% | 7.5% | 8.1% | 8.4% |
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 | 1.30 | 1.30 | 1.19 | 1.12 | 1.02 | 0.82 | 1.19 | 1.77 | 1.89 | 1.98 | 1.94 |
| Debt / EBITDA | 5.47 | 5.47 | 5.43 | 5.26 | 5.46 | 4.40 | 5.95 | 9.10 | 5.47 | 5.31 | 4.88 |
| Net Debt / Equity | — | 1.23 | 1.17 | 1.10 | 1.00 | 0.56 | 1.15 | 1.71 | 1.84 | 1.93 | 1.91 |
| Net Debt / EBITDA | 5.17 | 5.17 | 5.33 | 5.15 | 5.32 | 3.00 | 5.78 | 8.78 | 5.32 | 5.19 | 4.80 |
| Debt / FCF | — | — | — | — | — | 0.75 | 32.38 | — | — | — | — |
| Interest Coverage | 2.82 | 2.82 | 2.51 | 2.39 | 2.78 | 1.57 | 2.50 | 2.48 | 3.37 | 3.12 | 3.87 |
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 | 0.86 | 0.86 | 0.86 | 0.88 | 0.75 | 2.16 | 1.39 | 0.56 | 0.53 | 0.57 | 0.54 |
| Quick Ratio | 0.74 | 0.74 | 0.71 | 0.73 | 0.63 | 2.02 | 1.37 | 0.50 | 0.47 | 0.49 | 0.45 |
| Cash Ratio | 0.24 | 0.24 | 0.09 | 0.10 | 0.09 | 1.54 | 0.03 | 0.17 | 0.14 | 0.12 | 0.09 |
| Asset Turnover | — | 0.20 | 0.21 | 0.21 | 0.21 | 0.17 | 0.11 | 0.12 | 0.18 | 0.18 | 0.20 |
| Inventory Turnover | 10.00 | 10.00 | 9.92 | 9.97 | 11.32 | 9.53 | 8.89 | 8.86 | 11.64 | 10.14 | 9.42 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
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 | 3.0% | 3.0% | 3.1% | 3.5% | 3.7% | 5.6% | 5.9% | 4.5% | 5.6% | 5.0% | 4.4% |
| Payout Ratio | 67.2% | 67.2% | 84.1% | 95.1% | 104.1% | — | 86.8% | 68.3% | 62.0% | 95.0% | 54.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.4% | 4.6% | 3.7% | 3.7% | 3.5% | — | 6.8% | 6.6% | 9.1% | 5.3% | 8.2% |
| FCF Yield | — | — | — | — | — | 44.5% | 2.2% | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 4.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 3.0% | 3.0% | 3.1% | 3.5% | 3.7% | 9.9% | 5.9% | 4.5% | 5.6% | 5.0% | 4.4% |
| Shares Outstanding | — | $745M | $740M | $738M | $737M | $765M | $769M | $737M | $709M | $687M | $680M |
Regulatory recovery lag risk
According to current market data, PPL trades at a forward P/E of 18.97, which appears to reflect investor confidence in the company's transition to a pure-play US regulated model while balancing a 2.9% dividend yield against prevailing interest rate benchmarks for bond-proxy utility equities.
The valuation premium relative to historical ranges suggests that the market is pricing in the predictability of the rate base growth plan rather than immediate earnings expansion. Investors should monitor whether this multiple holds as the company navigates the capital-intensive generation transition in Kentucky, which may pressure free cash flow and dividend coverage ratios.
Based on reported quarterly figures, PPL's earned ROE of 3.0% in 2026Q1 remains significantly below typical authorized levels, suggesting that the company is currently experiencing material regulatory lag as it integrates substantial capital investments into its rate base across its Pennsylvania, Kentucky, and Rhode Island jurisdictions.
The gap between earned and authorized returns warrants further investigation into the timing of rate case filings and the effectiveness of formula rate mechanisms. If this ROE compression persists, it may indicate that the regulatory compact is not providing the expected support for the company's aggressive infrastructure modernization program.
As reported in financial statements, PPL's debt-to-capital ratio of 0.57 in 2026Q1 highlights the leverage required to fund its multi-billion dollar capital expenditure plan, a level that appears to be testing the company's balance sheet capacity within its current regulated utility framework.
The interest coverage ratio of 3.31x suggests that while the company maintains sufficient earnings to service its debt, the margin for error is narrowing as interest rates remain elevated. Analysts should monitor whether management maintains its commitment to a strong balance sheet or if further capital market access is required to sustain the current investment pace.
Based on the provided quarterly data, PPL's dividend payout ratio of 44.7% in 2026Q1 indicates that the company is prioritizing shareholder returns despite a significant free cash flow deficit, which necessitates ongoing reliance on external financing to support its extensive infrastructure development and grid modernization projects.
While the payout ratio appears manageable, the reliance on external capital to fund both dividends and CAPEX creates a structural dependency on favorable credit markets. Investors should monitor the OCF-to-dividend coverage to ensure that core utility operations remain the primary source of funding for the dividend over the long term.
The most commonly misapplied ratio for PPL is the standard P/E multiple, which obscures the impact of regulatory accounting and non-cash depreciation on earnings, often leading analysts to ignore the more critical metric of rate base growth as the primary driver of long-term utility value.
Comparing PPL's P/E to industrial peers is fundamentally flawed because utility earnings are constrained by the regulatory compact rather than competitive market expansion. Analysts should instead focus on the relationship between the allowed ROE and the rate base, as this provides a more accurate assessment of the company's true earnings power and valuation floor.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying PPL stock.
PPL Corporation's current P/E ratio is 22.6x. The historical average is 16.8x. This places it at the 75th percentile of its historical range.
PPL Corporation's current EV/EBITDA is 12.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.7x.
PPL Corporation's return on equity (ROE) is 8.2%. The historical average is 12.0%.
Based on historical data, PPL Corporation is trading at a P/E of 22.6x. This is at the 75th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
PPL Corporation's current dividend yield is 2.95% with a payout ratio of 67.2%.
PPL Corporation has 39.1% gross margin and 23.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
PPL Corporation's Debt/EBITDA ratio is 5.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.