Latest Ratios: P/E Ratio 66.7x · EV/EBITDA 23.3x · ROE 15.4%. (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 | $5.1B | $5.1B | $3.9B | $4.8B | $2.3B | $6.6B | $7.8B | — | — |
| Enterprise Value | $7.1B | $7.0B | $6.0B | $6.8B | $4.0B | $8.3B | $9.6B | — | — |
| P/E Ratio → | 66.74 | 65.33 | 85.50 | 93.61 | — | 57.44 | — | — | — |
| P/S Ratio | 4.42 | 4.34 | 3.54 | 4.55 | 2.32 | 7.06 | 9.50 | — | — |
| P/B Ratio | 8.52 | 8.34 | 9.63 | 10.75 | 6.66 | 11.23 | 17.10 | — | — |
| P/FCF | 34.45 | 33.87 | 86.43 | — | 24.41 | 36.68 | 115.87 | — | — |
| P/OCF | 17.89 | 17.59 | 17.39 | — | 8.39 | 23.37 | 64.46 | — | — |
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 | — | 6.00 | 5.43 | 6.48 | 3.96 | 8.91 | 11.71 | — | — |
| EV / EBITDA | 23.30 | 23.02 | 12.94 | 15.65 | 10.08 | 20.36 | 27.40 | — | — |
| EV / EBIT | 17.99 | 23.02 | 21.43 | 27.33 | — | 33.21 | 54.30 | — | — |
| EV / FCF | — | 46.79 | 132.41 | — | 41.53 | 46.27 | 142.81 | — | — |
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 | 55.5% | 55.5% | 54.7% | 55.0% | 55.5% | 55.7% | 54.2% | 50.8% | 47.9% |
| Operating Margin | 33.8% | 33.8% | 27.0% | 26.4% | 24.7% | 27.6% | 25.2% | 23.6% | 10.8% |
| Net Profit Margin | 6.7% | 6.7% | 4.0% | 4.9% | -23.3% | 12.5% | -4.7% | -2.7% | -0.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 15.4% | 15.4% | 10.5% | 12.9% | -49.9% | 22.5% | -8.5% | — | -12.9% |
| ROA | 2.5% | 2.5% | 1.4% | 1.6% | -7.9% | 4.2% | -1.4% | -0.8% | -0.2% |
| ROIC | 11.8% | 11.8% | 9.0% | 9.3% | 8.7% | 8.4% | 7.0% | 6.4% | 2.8% |
| ROCE | 13.3% | 13.3% | 10.3% | 10.6% | 10.0% | 9.8% | 8.1% | 7.3% | 3.2% |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 3.75 | 3.75 | 5.81 | 5.24 | 5.80 | 3.12 | 4.20 | — | 49.19 |
| Debt / EBITDA | 7.50 | 7.50 | 5.10 | 5.35 | 5.16 | 4.48 | 5.46 | 8.62 | 9.83 |
| Net Debt / Equity | — | 3.18 | 5.12 | 4.58 | 4.67 | 2.94 | 3.97 | — | 47.08 |
| Net Debt / EBITDA | 6.36 | 6.36 | 4.50 | 4.67 | 4.16 | 4.22 | 5.17 | 8.43 | 9.41 |
| Debt / FCF | — | 12.92 | 45.98 | — | 17.12 | 9.59 | 26.94 | 30.35 | 45.61 |
| Interest Coverage | 1.95 | 1.95 | 1.69 | 1.74 | -2.03 | 3.37 | 0.82 | 0.99 | 1.17 |
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 | 2.46 | 2.46 | 2.75 | 2.42 | 0.81 | 2.15 | 2.24 | 2.04 | 2.18 |
| Quick Ratio | 2.24 | 2.24 | 2.50 | 2.21 | 0.77 | 1.81 | 2.00 | 1.73 | 1.92 |
| Cash Ratio | 1.39 | 1.39 | 1.45 | 1.29 | 0.50 | 0.66 | 0.73 | 0.51 | 0.67 |
| Asset Turnover | — | 0.36 | 0.36 | 0.34 | 0.32 | 0.33 | 0.30 | 0.30 | 0.28 |
| Inventory Turnover | 9.53 | 9.53 | 10.13 | 9.77 | 12.03 | 7.60 | 10.99 | 10.24 | 10.34 |
| Days Sales Outstanding | — | 55.29 | 55.00 | 61.06 | 56.63 | 52.53 | 58.45 | 52.33 | 69.27 |
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 | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.5% | 1.5% | 1.2% | 1.1% | — | 1.7% | — | — | — |
| FCF Yield | 2.9% | 3.0% | 1.2% | — | 4.1% | 2.7% | 0.9% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.1% | 0.1% | 0.0% | 0.0% | 0.4% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.1% | 0.1% | 0.0% | 0.0% | 0.4% | — | — |
| Shares Outstanding | — | $286M | $285M | $283M | $280M | $279M | $283M | $284M | $246M |
Regulatory and litigation overhang
Based on reported figures, SHC trades at a forward P/E of 17.92, which appears to reflect a significant litigation discount compared to broader healthcare peers, suggesting that the market remains skeptical of the company's ability to navigate ongoing environmental regulatory pressures and potential future liability settlements.
The valuation gap between SHC and its peers suggests that investors are pricing in a permanent risk premium due to the Ethylene Oxide litigation overhang. While the forward multiple appears attractive, it assumes that the company can maintain its core sterilization margins despite the potential for increased compliance-related capital expenditures.
As reported in financial statements, SHC's ROIC has remained consistently low, hovering between 1.6% and 4.0% over the last ten quarters, which indicates that the company's heavy reliance on acquired intangible assets significantly dilutes the returns generated by its underlying sterilization and testing infrastructure.
The persistent gap between operating margins and ROIC highlights the drag created by the company's historical acquisition-heavy capital structure. Investors should monitor whether management can improve capital allocation efficiency as the business matures and the amortization of these legacy intangible assets begins to taper off.
According to recent SEC filings, SHC's cash conversion cycle has fluctuated between 37 and 52 days, reflecting inconsistent working capital management that appears tied to the lumpy nature of project-based advisory work within the Nelson Labs segment and variable collection cycles across its global operations.
The variability in the cash conversion cycle suggests that the company's liquidity position is sensitive to the timing of customer payments and inventory procurement. This lack of consistency in working capital efficiency may complicate cash flow forecasting for investors, especially during periods of heightened regulatory compliance spending.
Based on reported figures, SHC maintains a strained balance sheet with a debt-to-equity ratio that peaked at 5.81 in 2024Q4, indicating that the company's high leverage profile remains a primary constraint on its ability to reinvest in new sterilization technologies or pursue further strategic acquisitions.
The company's interest coverage ratio, which has dipped as low as 0.64 in 2025Q1, suggests that debt service obligations are becoming increasingly sensitive to earnings volatility. This leverage profile warrants close monitoring, as any further compression in operating margins could limit the company's financial flexibility in a higher-rate environment.
The P/E ratio is frequently misapplied to SHC because it fails to account for the significant non-cash amortization charges and litigation-related accruals that distort reported net income, making the EV/EBITDA metric a more reliable indicator of the company's true operational earning power and cash-generative capacity.
Using P/E as the primary valuation tool obscures the underlying cash-generative nature of the sterilization business by focusing on accounting earnings that are heavily impacted by historical acquisition premiums. Analysts should prioritize EV/EBITDA and free cash flow metrics to better assess the company's ability to service its debt and fund ongoing regulatory compliance.
Includes 30+ ratios · 8 years · Updated daily
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying SHC stock.
Sotera Health Company's current P/E ratio is 66.7x. The historical average is 75.5x. This places it at the 50th percentile of its historical range.
Sotera Health Company's current EV/EBITDA is 23.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.2x.
Sotera Health Company's return on equity (ROE) is 15.4%. The historical average is -1.4%.
Based on historical data, Sotera Health Company is trading at a P/E of 66.7x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Sotera Health Company has 55.5% gross margin and 33.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Sotera Health Company's Debt/EBITDA ratio is 7.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.