Latest Ratios: P/E Ratio 31.1x · EV/EBITDA 26.8x · ROE 27.1%. (2013–2025 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 | $748M | $988M | $2.5B | $3.5B | $2.0B | $6.5B | $4.6B | $2.7B | $1.4B | $802M | $502M |
| Enterprise Value | $1.5B | $1.8B | $3.2B | $4.3B | $2.7B | $7.3B | $4.9B | $2.9B | $1.5B | $750M | $449M |
| P/E Ratio → | 31.11 | 42.22 | 100.57 | — | — | — | — | — | — | — | — |
| P/S Ratio | 0.87 | 1.15 | 3.01 | 4.46 | 2.90 | 12.15 | 11.18 | 8.35 | 5.93 | 3.99 | 3.19 |
| P/B Ratio | 4.71 | 6.39 | 143.52 | — | — | — | 64.32 | 32.82 | 16.58 | 33.18 | 11.94 |
| P/FCF | 5.17 | 6.84 | 15.11 | 34.72 | 34.41 | 144.85 | — | — | — | 94.72 | 108.82 |
| P/OCF | 4.92 | 6.49 | 14.81 | 33.27 | 25.44 | 120.65 | 941.58 | — | 238.64 | 60.33 | 55.09 |
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 | — | 2.06 | 3.82 | 5.50 | 3.94 | 13.55 | 11.89 | 8.78 | 6.24 | 3.73 | 2.85 |
| EV / EBITDA | 26.83 | 31.04 | 40.35 | — | — | — | — | — | — | — | — |
| EV / EBIT | 132.21 | 43.57 | 61.53 | — | — | — | — | — | — | — | — |
| EV / FCF | — | 12.24 | 19.17 | 42.84 | 46.64 | 161.51 | — | — | — | 88.62 | 97.30 |
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 | 70.3% | 70.3% | 70.3% | 70.2% | 68.7% | 68.4% | 70.5% | 72.1% | 70.9% | 71.7% | 74.8% |
| Operating Margin | 1.3% | 1.3% | 4.2% | -10.4% | -16.3% | -22.4% | -18.0% | -14.1% | -21.7% | -24.3% | -31.2% |
| Net Profit Margin | 2.7% | 2.7% | 3.0% | -19.2% | -18.2% | -27.3% | -24.0% | -16.5% | -22.8% | -22.6% | -31.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 27.1% | 27.1% | 144.1% | — | — | — | -127.8% | -63.2% | -99.7% | -137.4% | -89.0% |
| ROA | 1.4% | 1.4% | 1.6% | -10.4% | -9.4% | -13.2% | -12.5% | -8.8% | -13.2% | -17.2% | -20.7% |
| ROIC | 1.1% | 1.1% | 3.8% | -9.5% | -13.8% | -18.3% | -19.0% | -17.8% | -58.9% | — | — |
| ROCE | 1.1% | 1.1% | 3.6% | -9.2% | -13.5% | -17.3% | -15.8% | -13.1% | -25.3% | -50.7% | -46.2% |
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 | 6.65 | 6.65 | 57.49 | — | — | — | 6.49 | 3.18 | 2.00 | — | — |
| Debt / EBITDA | 18.04 | 18.04 | 12.74 | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | 5.05 | 38.59 | — | — | — | 4.06 | 1.70 | 0.86 | -2.13 | -1.26 |
| Net Debt / EBITDA | 13.71 | 13.71 | 8.55 | — | — | — | — | — | — | — | — |
| Debt / FCF | — | 5.41 | 4.06 | 8.12 | 12.23 | 16.66 | — | — | — | -6.09 | -11.52 |
| Interest Coverage | 3.89 | 3.89 | 4.78 | -1.31 | -10.14 | -8.51 | -3.01 | -3.02 | -10.16 | -61.44 | -374.25 |
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 | 1.20 | 1.20 | 1.25 | 1.11 | 0.96 | 0.92 | 1.34 | 1.27 | 1.51 | 0.91 | 0.89 |
| Quick Ratio | 1.20 | 1.20 | 1.25 | 1.11 | 0.96 | 0.92 | 1.34 | 1.27 | 1.46 | 0.91 | 0.89 |
| Cash Ratio | 0.82 | 0.82 | 0.83 | 0.67 | 0.55 | 0.48 | 0.88 | 0.84 | 1.10 | 0.48 | 0.49 |
| Asset Turnover | — | 0.50 | 0.51 | 0.52 | 0.50 | 0.41 | 0.45 | 0.49 | 0.44 | 0.71 | 0.65 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 5.77 | — | — |
| Days Sales Outstanding | — | 70.90 | 72.76 | 77.37 | 81.01 | 99.60 | 98.99 | 98.16 | 112.05 | 133.80 | 113.96 |
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 | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.2% | 2.4% | 1.0% | — | — | — | — | — | — | — | — |
| FCF Yield | 19.3% | 14.6% | 6.6% | 2.9% | 2.9% | 0.7% | — | — | — | 1.1% | 0.9% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $65M | $63M | $61M | $59M | $55M | $51M | $49M | $46M | $43M | $41M |
High debt-to-equity leverage
According to current market data, Rapid7 trades at a P/S ratio of 0.59, which appears to reflect significant investor skepticism regarding the company's ability to re-accelerate top-line growth compared to its primary vulnerability management peers like Qualys, which command substantially higher valuation multiples in the current market environment.
The forward P/E of 4.89 suggests that the market is pricing in a very low growth trajectory, potentially viewing the company as a value trap rather than a growth-oriented software provider. This valuation gap warrants investigation, as it implies that the market may be discounting the strategic value of the Metasploit ecosystem in favor of more immediate, albeit slower, financial performance metrics.
Based on reported figures, Rapid7's ROIC has struggled to maintain positive territory, frequently hovering near zero or negative levels, which indicates that the company is currently failing to generate meaningful returns on its invested capital compared to the high-performing benchmarks set by industry peers like Qualys.
The persistent difficulty in compounding returns on capital suggests that the company's aggressive M&A strategy has yet to yield the expected operational synergies. Investors should monitor whether management can improve capital allocation efficiency, as the current trend indicates a decay in returns that may be exacerbated by the company's high debt burden.
As reported in financial statements, Rapid7's asset turnover has remained consistently low at approximately 0.13, suggesting that the company's ability to generate revenue from its asset base is not improving and remains significantly constrained by its current operational structure and heavy reliance on legacy service-based revenue streams.
The stability of DSO figures around 60 days implies that while the company is not facing immediate collection issues, it is also not gaining leverage over its customer base. This lack of improvement in asset efficiency reinforces the view that the company is currently in a digestion phase rather than an expansionary one.
According to recent SEC filings, Rapid7's debt-to-equity ratio of 6.65 highlights a precarious balance sheet position that significantly limits the company's financial flexibility, especially when compared to the more conservative capital structures maintained by its direct competitors in the infrastructure software sector.
The high leverage ratio, combined with fluctuating interest coverage, suggests that the company is highly sensitive to interest rate volatility. This financial profile may force management to prioritize debt service over the aggressive R&D or M&A investments required to regain competitive momentum in the security market.
Based on an analysis of the company's financial structure, the P/E ratio is the most commonly misapplied metric for Rapid7, as it fails to account for the significant non-cash impact of stock-based compensation which consistently obscures the company's true underlying GAAP profitability and cash-generating capacity.
Investors should instead focus on free cash flow margins and adjusted EBITDA, which provide a more accurate picture of the company's operational health. Relying on P/E multiples in this context may lead to an inaccurate assessment of the company's valuation, as it ignores the dilution and expense profile inherent in the current compensation model.
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Quick answers to the most common questions about buying RPD stock.
Rapid7, Inc.'s current P/E ratio is 31.1x. The historical average is 71.4x.
Rapid7, Inc.'s current EV/EBITDA is 26.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 35.7x.
Rapid7, Inc.'s return on equity (ROE) is 27.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -81.2%.
Based on historical data, Rapid7, Inc. is trading at a P/E of 31.1x. Compare with industry peers and growth rates for a complete picture.
Rapid7, Inc. has 70.3% gross margin and 1.3% operating margin.
Rapid7, Inc.'s Debt/EBITDA ratio is 18.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.