Latest Ratios: P/E Ratio -294.1x · EV/EBITDA 73.9x · ROE -7.3%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $12.6B | $7.1B | $4.8B | $1.3B | $2.1B | $4.7B | $4.7B | $3.2B | $3.3B | $2.4B | $2.2B |
| Enterprise Value | $12.9B | $7.4B | $5.2B | $2.5B | $3.2B | $4.6B | $4.6B | $3.2B | $3.2B | $2.3B | $2.1B |
| P/E Ratio → | -294.07 | — | — | — | 34.41 | 37.03 | 77.97 | 102.53 | 52.78 | 70.20 | 39.70 |
| P/S Ratio | 12.00 | 6.78 | 5.27 | 1.46 | 2.79 | 6.29 | 7.88 | 5.93 | 5.30 | 4.12 | 4.00 |
| P/B Ratio | 21.75 | 12.95 | 8.84 | — | 2.80 | 6.32 | 6.71 | 4.80 | 4.87 | 3.64 | 3.60 |
| P/FCF | 78.89 | 44.56 | 109.51 | — | 21.49 | 26.35 | 54.37 | 34.00 | 19.97 | 34.35 | 25.72 |
| P/OCF | 74.33 | 41.99 | 82.69 | — | 16.69 | 22.95 | 39.41 | 27.39 | 18.12 | 22.85 | 18.52 |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 7.06 | 5.71 | 2.93 | 4.25 | 6.15 | 7.72 | 5.75 | 5.14 | 3.98 | 3.90 |
| EV / EBITDA | 73.95 | 42.51 | 46.78 | 50.52 | 16.43 | 25.67 | 43.15 | 34.84 | 23.30 | 18.22 | 19.75 |
| EV / EBIT | 96.53 | 55.49 | 84.21 | — | 20.25 | 32.03 | 61.55 | 61.98 | 36.32 | 29.47 | 35.15 |
| EV / FCF | — | 46.42 | 118.64 | — | 32.72 | 25.76 | 53.33 | 32.97 | 19.36 | 33.19 | 25.06 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 51.6% | 51.6% | 50.1% | 43.0% | 63.3% | 62.2% | 59.7% | 58.5% | 55.9% | 55.1% | 55.0% |
| Operating Margin | 12.7% | 12.7% | 6.8% | -3.9% | 21.0% | 19.2% | 12.5% | 9.3% | 14.2% | 13.5% | 11.1% |
| Net Profit Margin | -3.8% | -3.8% | -17.8% | -125.7% | 8.1% | 17.0% | 10.1% | 5.8% | 11.1% | 6.2% | 10.0% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -7.3% | -7.4% | -137.7% | -486.7% | 8.2% | 17.5% | 8.7% | 4.7% | 10.3% | 5.7% | 9.6% |
| ROA | -2.9% | -2.9% | -11.6% | -55.4% | 3.3% | 11.4% | 5.6% | 3.0% | 6.5% | 3.5% | 5.7% |
| ROIC | 11.8% | 11.2% | 4.9% | -1.8% | 9.6% | 17.2% | 9.4% | 6.6% | 11.4% | 10.5% | 8.1% |
| ROCE | 11.8% | 11.8% | 5.4% | -2.0% | 10.0% | 14.4% | 7.8% | 5.4% | 9.4% | 8.6% | 7.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.89 | 0.89 | 1.02 | — | 1.77 | 0.24 | 0.26 | 0.29 | 0.31 | 0.34 | 0.40 |
| Debt / EBITDA | 2.82 | 2.82 | 4.97 | 27.80 | 6.84 | 0.99 | 1.68 | 2.15 | 1.53 | 1.76 | 2.24 |
| Net Debt / Equity | — | 0.54 | 0.74 | — | 1.46 | -0.14 | -0.13 | -0.15 | -0.15 | -0.12 | -0.09 |
| Net Debt / EBITDA | 1.70 | 1.70 | 3.60 | 25.25 | 5.64 | -0.59 | -0.84 | -1.09 | -0.73 | -0.63 | -0.52 |
| Debt / FCF | — | 1.85 | 9.13 | — | 11.23 | -0.59 | -1.04 | -1.03 | -0.61 | -1.16 | -0.66 |
| Interest Coverage | 3.34 | 3.34 | 0.69 | -0.32 | 10.29 | 23.56 | 14.00 | 5.58 | 9.65 | 9.97 | 6.68 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.37 | 2.37 | 2.07 | 2.46 | 1.82 | 3.91 | 4.33 | 4.67 | 3.74 | 3.65 | 3.57 |
| Quick Ratio | 1.67 | 1.67 | 1.49 | 1.79 | 1.30 | 3.02 | 3.53 | 3.93 | 3.25 | 3.09 | 3.03 |
| Cash Ratio | 0.71 | 0.71 | 0.58 | 0.66 | 0.59 | 2.18 | 2.45 | 2.97 | 2.40 | 2.44 | 2.42 |
| Asset Turnover | — | 0.74 | 0.64 | 0.63 | 0.29 | 0.66 | 0.55 | 0.52 | 0.59 | 0.54 | 0.54 |
| Inventory Turnover | 2.60 | 2.60 | 2.77 | 3.41 | 1.34 | 2.45 | 2.74 | 3.11 | 4.35 | 3.71 | 3.71 |
| Days Sales Outstanding | — | 55.83 | 75.51 | 56.43 | 78.01 | 35.23 | 43.20 | 41.28 | 46.10 | 33.02 | 34.50 |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | 2.9% | 2.7% | 1.3% | 1.0% | 1.9% | 1.4% | 2.5% |
| FCF Yield | 1.3% | 2.2% | 0.9% | — | 4.7% | 3.8% | 1.8% | 2.9% | 5.0% | 2.9% | 3.9% |
| Buyback Yield | 1.7% | 3.1% | 0.0% | 0.5% | 2.4% | 2.8% | 1.5% | 2.2% | 3.5% | 0.6% | 0.0% |
| Total Shareholder Yield | 1.7% | 3.1% | 0.0% | 0.5% | 2.4% | 2.8% | 1.5% | 2.2% | 3.5% | 0.6% | 0.0% |
| Shares Outstanding | — | $88M | $72M | $64M | $64M | $66M | $66M | $67M | $68M | $68M | $66M |
Acquisition integration and volatility
According to current market data, Semtech trades at an EV/EBITDA of 81.68, a valuation that appears to price in significant future growth from its IoT platform transition rather than reflecting the company's recent history of GAAP losses and integration-related earnings volatility.
The elevated P/S ratio of 13.29 relative to broader semiconductor peers suggests that investors are valuing the company as a software-augmented platform rather than a traditional hardware manufacturer. This valuation warrants caution, as it implies a high hurdle for future margin expansion that may not materialize if the integration of recent acquisitions continues to weigh on bottom-line performance.
Based on reported figures, Semtech's ROIC has remained suppressed, hovering at 2.6% in 2027Q1, which indicates that the company is currently struggling to generate returns on invested capital that exceed its cost of capital following the transformative Sierra Wireless acquisition.
The persistent gap between gross margins and ROIC suggests that the firm's capital base is heavily burdened by intangible assets and goodwill rather than productive operating assets. Investors should monitor whether management can improve asset turnover, which remains low at 0.20, to drive a more meaningful recovery in capital returns.
As reported in recent financial statements, Semtech's cash conversion cycle reached 123 days in 2027Q1, a figure that highlights significant inefficiencies in inventory management compared to historical norms and suggests potential challenges in aligning supply chain velocity with end-market demand.
The elevated days inventory outstanding of 122 days indicates that the company may be carrying excess stock, which poses a risk of obsolescence in the fast-moving semiconductor sector. This extended cycle appears to be a structural drag on free cash flow, limiting the firm's ability to self-fund its ongoing strategic pivot.
Data from recent filings shows an interest coverage ratio of 16.21 in 2027Q1, which, while improved from previous periods, remains sensitive to earnings fluctuations given the company's history of negative net margins and the ongoing integration of debt-funded acquisition liabilities.
While the debt-to-equity ratio of 0.86 suggests a manageable leverage profile, the volatility in interest coverage indicates that the company's ability to service debt is highly dependent on achieving consistent operating profitability. Any further disruption in the IoT segment could quickly strain the firm's financial flexibility.
The P/E ratio is the most commonly misapplied metric for Semtech, as it obscures the company's true earning power by failing to account for significant non-cash amortization and acquisition-related charges that currently distort GAAP net income figures.
Investors should instead focus on EV/EBITDA or adjusted free cash flow metrics to better gauge the underlying cash-generating capability of the business. Relying on P/E in the current context may lead to an inaccurate assessment of the company's valuation, as it ignores the structural shift toward a service-augmented model.
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Quick answers to the most common questions about buying SMTC stock.
Semtech Corporation's current P/E ratio is -294.1x. The historical average is 48.2x.
Semtech Corporation's current EV/EBITDA is 73.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 26.4x.
Semtech Corporation's return on equity (ROE) is -7.3%. The historical average is -10.8%.
Based on historical data, Semtech Corporation is trading at a P/E of -294.1x. Compare with industry peers and growth rates for a complete picture.
Semtech Corporation has 51.6% gross margin and 12.7% operating margin. Operating margin between 10-20% is typical for established companies.
Semtech Corporation's Debt/EBITDA ratio is 2.8x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.