Latest Ratios: P/E Ratio 18.5x · EV/EBITDA 25.4x · ROE 5.7%. (2018–2025 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 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.3B | $2.9B | $2.8B | $2.7B | $3.1B | $5.5B | — | — | — |
| Enterprise Value | $1.5B | $-2520254845 | $-2750945080 | $386M | $1.9B | $474M | — | — | — |
| P/E Ratio → | 18.46 | 3.33 | 5.02 | 5.00 | 2.11 | 2.71 | — | — | — |
| P/S Ratio | 4.49 | 0.81 | 1.14 | 2.15 | 0.57 | 0.65 | — | — | — |
| P/B Ratio | 1.00 | 0.18 | 0.17 | 0.17 | 0.20 | 0.41 | — | — | — |
| P/FCF | 16.02 | 2.89 | 3.31 | 16.12 | 6.82 | 3.31 | — | — | — |
| P/OCF | 14.30 | 2.58 | 3.26 | 13.49 | 6.27 | 3.05 | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | -0.72 | -1.13 | 0.31 | 0.35 | 0.06 | — | — | — |
| EV / EBITDA | 25.36 | -6.13 | — | — | 1.64 | 0.20 | — | — | — |
| EV / EBIT | 32.62 | -2.46 | -4.18 | 0.65 | 1.05 | 0.18 | — | — | — |
| EV / FCF | — | -2.56 | -3.27 | 2.32 | 4.18 | 0.29 | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 32.7% | 32.7% | 29.7% | 31.2% | 43.2% | 43.1% | 40.0% | 37.5% | 44.7% |
| Operating Margin | 9.1% | 9.1% | -4.4% | -39.9% | 19.9% | 27.0% | 0.3% | 3.6% | 1.7% |
| Net Profit Margin | 25.5% | 25.5% | 22.6% | 43.0% | 27.0% | 23.8% | -3.4% | 3.1% | -0.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 5.7% | 5.7% | 3.5% | 3.4% | 9.9% | 29.5% | -104.2% | 436.4% | -4.3% |
| ROA | 5.2% | 5.2% | 3.3% | 3.3% | 8.8% | 23.8% | -30.9% | 30.5% | -0.3% |
| ROIC | 2.3% | 2.3% | -0.7% | -2.7% | 7.0% | 39.8% | 11.4% | 463.9% | — |
| ROCE | 2.0% | 2.0% | -0.7% | -3.2% | 7.3% | 33.2% | 7.4% | 89.3% | 27.6% |
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 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | 0.00 | 0.01 | 0.01 | 0.01 | 0.68 | 4.15 | 0.07 |
| Debt / EBITDA | 0.43 | 0.43 | — | — | 0.08 | 0.08 | 4.30 | 0.91 | 0.22 |
| Net Debt / Equity | — | -0.34 | -0.35 | -0.15 | -0.08 | -0.37 | -0.29 | -0.40 | -10.22 |
| Net Debt / EBITDA | -13.07 | -13.07 | — | — | -1.03 | -2.14 | -1.84 | -0.09 | -30.10 |
| Debt / FCF | — | -5.45 | -6.57 | -13.80 | -2.64 | -3.02 | -0.03 | -0.02 | — |
| Interest Coverage | — | — | — | — | — | — | — | — | 20.66 |
Net cash position: cash ($5.5B) exceeds total debt ($176M)
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 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 5.70 | 5.70 | 10.84 | 13.44 | 14.18 | 5.10 | 1.55 | 1.91 | 1.07 |
| Quick Ratio | 5.55 | 5.55 | 10.68 | 13.22 | 14.01 | 4.88 | 1.41 | 1.54 | 0.92 |
| Cash Ratio | 5.18 | 5.18 | 9.90 | 12.14 | 13.66 | 4.69 | 1.37 | 1.31 | 0.70 |
| Asset Turnover | — | 0.20 | 0.14 | 0.08 | 0.33 | 0.52 | 6.15 | 7.47 | 1.25 |
| Inventory Turnover | 7.95 | 7.95 | 12.05 | 5.91 | 23.13 | 8.23 | 43.08 | 29.23 | 5.18 |
| Days Sales Outstanding | — | 42.01 | 84.55 | 194.45 | 4.07 | 1.11 | 0.80 | 2.90 | 53.02 |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.6% | 3.2% | 3.2% | 3.4% | 0.0% | 5.9% | — | — | — |
| Payout Ratio | 10.2% | 10.2% | 16.1% | 17.3% | 0.0% | 16.1% | — | 75.4% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.4% | 30.0% | 19.9% | 20.0% | 47.4% | 36.9% | — | — | — |
| FCF Yield | 6.2% | 34.6% | 30.2% | 6.2% | 14.7% | 30.2% | — | — | — |
| Buyback Yield | 1.2% | 6.4% | 21.2% | 37.2% | 16.4% | 2.3% | — | — | — |
| Total Shareholder Yield | 1.7% | 9.7% | 24.4% | 40.6% | 16.4% | 8.2% | — | — | — |
| Shares Outstanding | — | $1.2B | $1.3B | $1.3B | $1.3B | $1.4B | $1.6B | $1.6B | $1.6B |
Regulatory Policy Overhang
According to recent market data, RLX trades at a forward P/E of 1.99, which suggests that investors are heavily discounting the company's future earnings potential due to the persistent regulatory uncertainty surrounding the Chinese e-vapor market compared to global tobacco peers trading at significantly higher multiples.
The stark contrast between the TTM P/E of 18.04 and the forward multiple implies that the market anticipates a significant shift in earnings quality or a potential contraction in profitability. This valuation gap warrants further investigation into whether the market is pricing in a permanent state-mandated cap on returns or merely reflecting the geopolitical risk premium associated with US-listed Chinese equities.
As reported in financial statements, RLX's ROIC has remained depressed, hovering near 0.8% in 2025Q4, which indicates that the company is struggling to generate meaningful returns on its invested capital base within the current restrictive regulatory environment compared to historical performance levels.
The persistent low ROIC suggests that the company's massive cash reserves, while providing a safety net, are diluting overall capital efficiency. Investors should monitor whether management can deploy this capital into higher-yielding initiatives or if the regulatory framework effectively prevents the company from achieving the compounding returns typical of mature tobacco industry participants.
Based on the provided figures, RLX's cash conversion cycle has fluctuated significantly, reaching 19 days in 2025Q4, which reflects the operational complexities of navigating the state-mandated national transaction platform and the resulting shifts in inventory and payment terms compared to previous periods of higher operational autonomy.
The variability in DSO and DPO suggests that the company's leverage over its supply chain and distribution network is being mediated by state-controlled platforms. This shift appears to have reduced the company's ability to optimize working capital, potentially leading to increased inventory holding costs as the firm adapts to standardized product requirements.
According to recent balance sheet disclosures, RLX maintains a current ratio of 5.70, which provides a substantial liquidity buffer that appears designed to insulate the company against potential regulatory fines or sudden shifts in the state-mandated distribution environment that could otherwise threaten operational continuity.
While this liquidity position is objectively strong, it may also indicate a lack of productive investment opportunities, as the company holds significant cash rather than reinvesting in growth. This defensive posture appears to be a rational response to the high-risk regulatory landscape, though it may continue to weigh on overall return metrics.
Based on an analysis of industry metrics, the P/E ratio is frequently misapplied to RLX, as it fails to account for the massive interest income generated by the company's cash pile, which obscures the underlying operational profitability of the core e-vapor business model.
Analysts should instead focus on EV/EBITDA or adjusted operating margins to strip out the non-operating gains that currently inflate net income. Relying on standard P/E multiples may lead to an overestimation of the company's core earning power, as the business is increasingly functioning as a regulated utility rather than a high-growth consumer brand.
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Quick answers to the most common questions about buying RLX stock.
RLX Technology Inc.'s current P/E ratio is 18.5x. The historical average is 3.6x. This places it at the 100th percentile of its historical range.
RLX Technology Inc.'s current EV/EBITDA is 25.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 0.9x.
RLX Technology Inc.'s return on equity (ROE) is 5.7%. The historical average is 47.5%.
Based on historical data, RLX Technology Inc. is trading at a P/E of 18.5x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
RLX Technology Inc.'s current dividend yield is 0.58% with a payout ratio of 10.2%.
RLX Technology Inc. has 32.7% gross margin and 9.1% operating margin.
RLX Technology Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.