Latest Ratios: P/E Ratio 42.6x · EV/EBITDA 24.1x · ROE 7.6%. (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 | $29.4B | $17.1B | — | — |
| Enterprise Value | $33.5B | $21.2B | — | — |
| P/E Ratio → | 42.59 | 24.74 | — | — |
| P/S Ratio | 6.19 | 3.60 | — | — |
| P/B Ratio | 4.00 | 2.32 | — | — |
| P/FCF | 29.78 | 17.31 | — | — |
| P/OCF | 23.11 | 13.44 | — | — |
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 | — | 4.45 | — | — |
| EV / EBITDA | 24.09 | 15.23 | — | — |
| EV / EBIT | 33.02 | 20.88 | — | — |
| EV / FCF | — | 21.43 | — | — |
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 | 41.8% | 41.8% | 46.1% | 43.5% |
| Operating Margin | 21.3% | 21.3% | 19.5% | 16.3% |
| Net Profit Margin | 14.6% | 14.6% | 16.0% | 12.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| ROE | 7.6% | 7.6% | 6.3% | 4.5% |
| ROA | 5.3% | 5.3% | 5.6% | 4.1% |
| ROIC | 6.8% | 6.8% | 5.7% | 4.4% |
| ROCE | 8.4% | 8.4% | 7.3% | 5.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Debt / Equity | 0.68 | 0.68 | 0.02 | 0.02 |
| Debt / EBITDA | 3.58 | 3.58 | 0.15 | 0.21 |
| Net Debt / Equity | — | 0.55 | 0.00 | 0.01 |
| Net Debt / EBITDA | 2.92 | 2.92 | 0.02 | 0.08 |
| Debt / FCF | — | 4.11 | 0.03 | 0.13 |
| Interest Coverage | 15.60 | 15.60 | 3.21 | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Current Ratio | 1.95 | 1.95 | 1.77 | 2.01 |
| Quick Ratio | 1.46 | 1.46 | 1.06 | 1.23 |
| Cash Ratio | 0.67 | 0.67 | 0.20 | 0.21 |
| Asset Turnover | — | 0.34 | 0.35 | 0.32 |
| Inventory Turnover | 4.18 | 4.18 | 3.91 | 4.27 |
| Days Sales Outstanding | — | 76.16 | 57.42 | 59.43 |
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 | 0.0% | 0.1% | — | — |
| Payout Ratio | 1.9% | 1.9% | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Earnings Yield | 2.3% | 4.0% | — | — |
| FCF Yield | 3.4% | 5.8% | — | — |
| Buyback Yield | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.1% | — | — |
| Shares Outstanding | — | $209M | $209M | $209M |
Geopolitical supply chain concentration
According to recent market data, Qnity trades at a 47.89x trailing P/E, a valuation that appears to price in significant future earnings expansion relative to its semiconductor peers, suggesting investors are betting on the company's role as a critical enabler of advanced node manufacturing transitions.
The forward P/E of 38.62 indicates that the market anticipates a meaningful earnings ramp as the company matures as a standalone entity. This valuation premium relative to broader industrial peers suggests that the market is beginning to re-rate Qnity as a high-growth technology play rather than a cyclical chemical supplier.
Based on reported figures, Qnity's ROIC of 2.0% in 2026Q1 highlights a nascent stage of capital compounding, which warrants further investigation as the company works to optimize its asset base following the recent spin-off from its former parent conglomerate.
The current low return on capital is likely distorted by the significant goodwill and intangible assets recognized during the separation process. Investors should monitor whether management can improve these returns as the company shifts from integration-focused spending to core operational efficiency.
As reported in recent financial statements, Qnity's cash conversion cycle reached 68 days in 2026Q1, reflecting the inherent friction in managing specialized semiconductor inventory and receivables as the company establishes its independent supply chain and customer payment terms post-spin-off.
The volatility in the CCC, which spiked to 350 days in 2025Q1, suggests that the company is still refining its inventory management processes. A sustained reduction in DIO and DSO will be critical to proving that the business can effectively manage its working capital without excessive cash outflows.
According to the latest balance sheet data, Qnity maintains a debt-to-equity ratio of 0.54, a conservative posture that provides the company with significant financial resilience to navigate potential industry downturns or fund necessary R&D investments without relying on external credit markets.
The interest coverage ratio of 4.90 suggests that debt service remains well-supported by current operating income. This healthy leverage profile appears to be a deliberate management choice to prioritize balance sheet stability during the early years of the company's independent existence.
The P/E ratio is frequently misapplied to Qnity because it treats the company as a standard cyclical manufacturer, failing to account for the 'Process-of-Record' status that creates a high-friction, recurring revenue stream which is fundamentally different from traditional commodity chemical businesses.
Investors should instead focus on the company's revenue per wafer start or its penetration rate in advanced packaging nodes, as these metrics better capture the long-term value of the company's integrated materials. Relying solely on P/E risks underestimating the earnings floor provided by the company's essential role in the semiconductor stack.
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Quick answers to the most common questions about buying Q stock.
Qnity Electronics, Inc.'s current P/E ratio is 42.6x. The historical average is 24.7x. This places it at the 100th percentile of its historical range.
Qnity Electronics, Inc.'s current EV/EBITDA is 24.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.2x.
Qnity Electronics, Inc.'s return on equity (ROE) is 7.6%. The historical average is 6.1%.
Based on historical data, Qnity Electronics, Inc. is trading at a P/E of 42.6x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Qnity Electronics, Inc.'s current dividend yield is 0.04% with a payout ratio of 1.9%.
Qnity Electronics, Inc. has 41.8% gross margin and 21.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Qnity Electronics, Inc.'s Debt/EBITDA ratio is 3.6x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.