Latest Ratios: P/E Ratio 1.8x · EV/EBITDA N/A · ROE N/A. (2005–2025 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 2014 | FY 2013 | FY 2012 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $110M | $85M | $31M | $42M | $276M | $364M | — | — | — | — | — |
| Enterprise Value | $258M | $233M | $334M | $315M | $436M | $429M | — | — | — | — | — |
| P/E Ratio → | 1.75 | 3.76 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 0.33 | 0.26 | 0.10 | 0.14 | 0.93 | 1.79 | — | — | — | — | — |
| P/B Ratio | — | — | — | — | — | 5.12 | — | — | — | — | — |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | 31.42 | 24.20 | 2.37 | — | — | — | — | — | — | — | — |
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 2014 | FY 2013 | FY 2012 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.71 | 1.09 | 1.05 | 1.47 | 2.11 | — | — | — | — | — |
| EV / EBITDA | — | — | 4.46 | 9.53 | 28.52 | — | — | — | — | — | — |
| EV / EBIT | — | 18.76 | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
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 2014 | FY 2013 | FY 2012 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 59.4% | 59.4% | 22.1% | 20.4% | 18.6% | 4.4% | -14.9% | 8.0% | 65.2% | 64.0% | 45.9% |
| Operating Margin | -17.4% | -17.4% | -15.4% | -24.1% | -27.7% | -60.0% | -69.1% | -39.4% | -5.9% | -12.5% | -22.4% |
| Net Profit Margin | 6.9% | 6.9% | -22.8% | -38.0% | -46.8% | -104.2% | -108.6% | -59.9% | -1.9% | -5.6% | -22.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2014 | FY 2013 | FY 2012 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | -774.9% | -297.9% | — | -141.1% | -1.3% | -8.5% | -45.9% |
| ROA | 6.2% | 6.2% | -13.4% | -26.0% | -35.4% | -55.1% | -57.4% | -54.9% | -1.1% | -5.6% | -31.3% |
| ROIC | -37.1% | -37.1% | -26.2% | -39.2% | -47.1% | -57.8% | -43.3% | -33.9% | -3.1% | -15.5% | -36.9% |
| ROCE | -18.5% | -18.5% | -10.0% | -18.9% | -25.1% | -37.0% | -43.1% | -42.0% | -3.8% | -16.5% | -41.6% |
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 2014 | FY 2013 | FY 2012 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | 4.40 | — | — | 0.01 | — | 0.01 |
| Debt / EBITDA | — | — | 5.08 | 10.81 | 20.60 | — | — | — | 1.64 | — | — |
| Net Debt / Equity | — | — | — | — | — | 0.92 | — | — | -0.01 | -0.10 | -0.07 |
| Net Debt / EBITDA | — | — | 4.05 | 8.26 | 10.50 | — | — | — | -0.93 | — | — |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | 0.61 | 0.61 | -1.88 | -2.35 | -2.77 | -3.00 | -2.67 | -5.42 | — | — | — |
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 2014 | FY 2013 | FY 2012 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.06 | 1.06 | 1.98 | 2.12 | 2.87 | 3.85 | 2.55 | 0.91 | 3.92 | 2.16 | 2.10 |
| Quick Ratio | 1.06 | 1.06 | 1.98 | 2.12 | 2.87 | 3.85 | 2.55 | 0.91 | 3.92 | 2.16 | 2.10 |
| Cash Ratio | 0.80 | 0.80 | 1.63 | 1.75 | 2.58 | 3.60 | 2.35 | 0.61 | 3.14 | 1.11 | 1.09 |
| Asset Turnover | — | 1.49 | 0.60 | 0.56 | 0.88 | 0.45 | 0.49 | 0.93 | 0.36 | 0.93 | 1.38 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | 1.59 | 4.93 | — | — | — | 59.88 | 60.47 | 61.39 |
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 2014 | FY 2013 | FY 2012 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2014 | FY 2013 | FY 2012 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 57.1% | 26.6% | — | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.4% | 0.5% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — | — | — |
| Total Shareholder Yield | 0.4% | 0.5% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — | — | — |
| Shares Outstanding | — | $12M | $4M | $3M | $3M | $3M | $3M | $3M | $675400 | $608850 | $586650 |
Negative equity and solvency
According to current market data, RENT trades at a price-to-sales ratio of 0.33, which, when compared to the broader retail sector, suggests that investors are heavily discounting the company's future growth prospects due to persistent operational losses and the ongoing challenges of scaling a capital-intensive rental model.
The low P/S multiple indicates that the market is pricing the company more like a distressed asset than a high-growth technology platform. This valuation appears to reflect deep skepticism regarding the company's ability to achieve sustainable profitability, as the forward EV/EBITDA of 74.98 implies that significant margin expansion is required to justify current price levels.
Based on reported financial figures, RENT's ROIC has remained consistently negative, reaching -13.5% in 2026Q1, which highlights the company's inability to generate returns on its invested capital that exceed the cost of the debt and equity required to maintain its specialized reverse logistics and garment inventory.
The persistent negative ROIC trend suggests that the company's core business model is currently destroying value rather than compounding it. This decay in capital efficiency appears driven by the high depreciation of rental assets and the substantial fixed costs associated with fulfillment, which have yet to be offset by sufficient economies of scale.
As reported in recent quarterly filings, RENT's cash conversion cycle remains unstable, with DPO fluctuating significantly between 13 and 31 days, indicating that the company lacks consistent leverage over its suppliers to optimize its working capital position effectively in a high-turnover, logistics-heavy retail environment.
The erratic nature of the cash conversion cycle suggests that management is struggling to balance the timing of inventory payments with the seasonal revenue inflows of the rental business. This inefficiency forces the company to rely more heavily on external financing, further exacerbating the liquidity pressures already evident on the balance sheet.
According to the 2026Q1 balance sheet, the current ratio has compressed to 0.75, which, as noted in financial statements, indicates that the company's liquid assets are insufficient to cover its short-term obligations, leaving the business highly vulnerable to any unexpected disruptions in its cash-intensive fulfillment operations.
The decline in the current ratio below parity suggests that the company is operating with a very thin margin of safety, which warrants close monitoring by investors. This liquidity position appears to be a direct consequence of the company's ongoing cash burn and the lack of a robust, self-sustaining cash flow generation mechanism.
The most commonly misapplied metric for RENT is the P/E ratio, which, as evidenced by the TTM figure of 1.74, obscures the company's underlying operational reality by including non-recurring accounting adjustments that do not reflect the actual, persistent negative operating margins inherent in the apparel rental business model.
Investors should instead focus on EV/Sales or unit-level economics, such as contribution margin per subscriber, to better understand the business's true performance. Relying on P/E in this context is misleading because it fails to account for the massive capital expenditures required to maintain the inventory pool, which are not captured in standard earnings metrics.
Includes 30+ ratios · 17 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying RENT stock.
Rent the Runway, Inc.'s current P/E ratio is 1.8x. The historical average is 3.8x.
Based on historical data, Rent the Runway, Inc. is trading at a P/E of 1.8x. Compare with industry peers and growth rates for a complete picture.
Rent the Runway, Inc. has 59.4% gross margin and -17.4% operating margin.