Latest Ratios: P/E Ratio -6.3x · EV/EBITDA 22.5x · ROE -45.3%. (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 | $7.6B | $5.8B | — | — |
| Enterprise Value | $8.4B | $6.6B | — | — |
| P/E Ratio → | -6.28 | — | — | — |
| P/S Ratio | 3.67 | 2.79 | — | — |
| P/B Ratio | 4.70 | 3.53 | — | — |
| P/FCF | 21.16 | 16.11 | — | — |
| P/OCF | 19.07 | 14.52 | — | — |
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 | — | 3.19 | — | — |
| EV / EBITDA | 22.48 | 17.65 | — | — |
| EV / EBIT | 32.52 | 25.52 | — | — |
| EV / FCF | — | 18.42 | — | — |
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 | 46.1% | 46.1% | 51.6% | 51.9% |
| Operating Margin | 12.5% | 12.5% | 21.3% | 23.7% |
| Net Profit Margin | -59.1% | -59.1% | 14.1% | 19.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| ROE | -45.3% | -45.3% | 10.1% | 18.4% |
| ROA | -28.6% | -28.6% | 7.8% | 13.6% |
| ROIC | 6.2% | 6.2% | 11.2% | 16.6% |
| ROCE | 7.6% | 7.6% | 13.7% | 20.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Debt / Equity | 0.70 | 0.70 | 0.02 | 0.02 |
| Debt / EBITDA | 3.07 | 3.07 | 0.13 | 0.09 |
| Net Debt / Equity | — | 0.51 | 0.02 | 0.02 |
| Net Debt / EBITDA | 2.22 | 2.22 | 0.13 | 0.09 |
| Debt / FCF | — | 2.32 | 0.17 | 0.11 |
| Interest Coverage | 8.01 | 8.01 | 5.96 | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Current Ratio | 0.84 | 0.84 | 1.16 | 1.10 |
| Quick Ratio | 0.58 | 0.58 | 0.63 | 0.61 |
| Cash Ratio | 0.27 | 0.27 | — | — |
| Asset Turnover | — | 0.54 | 0.46 | 0.70 |
| Inventory Turnover | 3.70 | 3.70 | 3.69 | 3.79 |
| Days Sales Outstanding | — | 50.34 | 49.77 | 50.12 |
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 | 4.7% | 6.2% | — | — |
| Buyback Yield | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $113M | $113M | $113M |
Margin compression and leverage
According to current market data, Ralliant trades at a forward P/E of 27.22 and an EV/EBITDA of 23.81, which appears disconnected from the company's recent operational volatility and suggests that investors are pricing in a recovery that remains unsupported by current financial performance metrics.
The current valuation multiples represent a significant premium relative to the company's historical performance and appear aggressive when compared to peers like Roper Technologies. This pricing implies an expectation of rapid margin expansion that contradicts the observed structural erosion in profitability and inconsistent cash flow generation.
As reported in financial statements, Ralliant's ROIC has languished at 1.9% in 2026Q1, a stark decline from the 4.7% observed in 2024Q1, indicating that the company is struggling to generate adequate returns on its invested capital base amidst ongoing operational and integration challenges.
The persistent decay in ROIC suggests that the company's capital allocation strategy is failing to drive value creation, likely exacerbated by the significant goodwill burden on the balance sheet. Investors should monitor whether management can improve asset utilization, as current returns remain well below the cost of capital.
Based on Ralliant's reported figures, the cash conversion cycle has expanded to 67 days in 2026Q1, driven by an elevated days inventory outstanding of 102 days, which highlights significant inefficiencies in managing the company's internal supply chain and inventory turnover relative to historical benchmarks.
The lengthening of the cash conversion cycle suggests that capital is being trapped in inventory, which directly impairs the company's liquidity position. This inefficiency appears structural rather than temporary, as the company has struggled to normalize its working capital cycle over the past several quarters.
Data from recent balance sheets indicates that Ralliant's debt-to-EBITDA ratio has climbed to 11.74 in 2026Q1, a substantial increase from 0.56 in 2024Q4, signaling that the company's debt service capacity is becoming increasingly constrained by its current earnings profile and rising interest obligations.
The rapid escalation in leverage ratios suggests that the company's balance sheet is becoming increasingly vulnerable to operational shocks. Given the volatility in interest coverage, the current debt load may limit strategic flexibility and increase the risk of covenant breaches if profitability does not stabilize.
While the P/E ratio is a standard metric, it is highly misleading for Ralliant due to the extreme volatility in net income, which swung from a $1.4 billion loss to a $44.2 million profit, rendering traditional earnings-based valuation multiples largely irrelevant for assessing true business health.
Investors should prioritize EV/FCF or normalized operating cash flow metrics over P/E, as the latter is heavily distorted by non-recurring charges and accounting adjustments. Relying on P/E in this context obscures the underlying cash-generating reality of the business and may lead to an inaccurate assessment of the company's intrinsic value.
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Quick answers to the most common questions about buying RAL stock.
Ralliant Corp.'s current P/E ratio is -6.3x. This places it at the 50th percentile of its historical range.
Ralliant Corp.'s current EV/EBITDA is 22.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.6x.
Ralliant Corp.'s return on equity (ROE) is -45.3%. The historical average is -5.6%.
Based on historical data, Ralliant Corp. is trading at a P/E of -6.3x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Ralliant Corp. has 46.1% gross margin and 12.5% operating margin. Operating margin between 10-20% is typical for established companies.
Ralliant Corp.'s Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.