Latest Ratios: P/E Ratio 21.2x · EV/EBITDA 9.9x · ROE 11.9%. (1996–2025 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 | $12.9B | $14.3B | $10.8B | $6.0B | $11.8B | $15.2B | $18.5B | $21.0B | $16.4B | $15.3B | $13.4B |
| Enterprise Value | $15.7B | $17.1B | $13.5B | $8.7B | $14.3B | $17.2B | $20.4B | $22.8B | $17.5B | $16.6B | $15.0B |
| P/E Ratio → | 21.17 | 22.78 | 26.15 | 22.73 | 53.78 | 28.85 | 41.34 | 35.35 | 24.59 | 19.89 | 17.09 |
| P/S Ratio | 2.09 | 2.32 | 1.85 | 1.07 | 2.26 | 2.92 | 4.05 | 4.09 | 3.34 | 3.21 | 2.88 |
| P/B Ratio | 2.52 | 2.71 | 2.05 | 1.14 | 2.24 | 2.73 | 3.50 | 4.09 | 3.36 | 3.30 | 3.39 |
| P/FCF | 15.12 | 16.77 | 17.78 | 32.92 | 106.96 | 32.40 | 37.50 | 27.68 | 28.01 | 21.45 | 29.39 |
| P/OCF | 10.02 | 11.12 | 10.92 | 9.80 | 25.14 | 17.32 | 19.73 | 18.01 | 17.57 | 14.05 | 15.82 |
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 | — | 2.77 | 2.32 | 1.58 | 2.74 | 3.31 | 4.47 | 4.44 | 3.56 | 3.48 | 3.21 |
| EV / EBITDA | 9.93 | 10.82 | 10.89 | 9.18 | 16.56 | 14.92 | 24.26 | 17.11 | 13.25 | 11.91 | 11.71 |
| EV / EBIT | 15.60 | 17.00 | 20.51 | 20.38 | 43.83 | 25.39 | 63.49 | 27.88 | 20.49 | 17.55 | 13.26 |
| EV / FCF | — | 20.01 | 22.24 | 48.29 | 129.89 | 36.76 | 41.42 | 30.00 | 29.89 | 23.25 | 32.78 |
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 | 68.0% | 68.0% | 69.6% | 68.8% | 70.5% | 70.4% | 69.4% | 74.0% | 73.5% | 73.8% | 72.8% |
| Operating Margin | 16.3% | 16.3% | 11.3% | 7.7% | 6.0% | 11.4% | 6.5% | 15.9% | 17.6% | 19.6% | 17.2% |
| Net Profit Margin | 10.1% | 10.1% | 7.1% | 4.7% | 4.3% | 10.1% | 9.8% | 11.7% | 13.5% | 16.1% | 16.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.9% | 11.9% | 7.9% | 5.0% | 4.1% | 9.7% | 8.6% | 12.0% | 13.9% | 17.8% | 19.8% |
| ROA | 6.0% | 6.0% | 4.1% | 2.6% | 2.1% | 4.8% | 4.4% | 6.9% | 8.3% | 10.1% | 10.8% |
| ROIC | 9.4% | 9.4% | 6.2% | 4.0% | 3.1% | 6.0% | 3.1% | 9.5% | 10.9% | 12.3% | 11.1% |
| ROCE | 11.4% | 11.4% | 7.9% | 5.3% | 3.7% | 6.5% | 3.5% | 11.4% | 13.2% | 14.9% | 13.6% |
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 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.63 | 0.63 | 0.63 | 0.59 | 0.55 | 0.60 | 0.70 | 0.40 | 0.30 | 0.31 | 0.42 |
| Debt / EBITDA | 2.11 | 2.11 | 2.68 | 3.24 | 3.33 | 2.89 | 4.39 | 1.54 | 1.11 | 1.04 | 1.29 |
| Net Debt / Equity | — | 0.52 | 0.51 | 0.53 | 0.48 | 0.37 | 0.37 | 0.34 | 0.23 | 0.28 | 0.39 |
| Net Debt / EBITDA | 1.75 | 1.75 | 2.18 | 2.92 | 2.92 | 1.77 | 2.30 | 1.33 | 0.84 | 0.92 | 1.21 |
| Debt / FCF | — | 3.24 | 4.46 | 15.37 | 22.93 | 4.37 | 3.92 | 2.33 | 1.88 | 1.79 | 3.39 |
| Interest Coverage | 6.43 | 6.43 | 3.91 | 3.09 | 4.08 | 8.49 | 5.18 | 12.58 | 14.44 | 14.12 | 16.62 |
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 | 2.57 | 2.57 | 2.89 | 1.77 | 2.25 | 2.08 | 2.76 | 2.06 | 2.10 | 2.03 | 1.88 |
| Quick Ratio | 1.25 | 1.25 | 1.33 | 0.72 | 0.96 | 1.21 | 1.76 | 1.03 | 1.15 | 1.06 | 0.95 |
| Cash Ratio | 0.35 | 0.35 | 0.40 | 0.13 | 0.20 | 0.61 | 1.04 | 0.18 | 0.25 | 0.13 | 0.07 |
| Asset Turnover | — | 0.59 | 0.56 | 0.56 | 0.52 | 0.48 | 0.41 | 0.55 | 0.61 | 0.61 | 0.64 |
| Inventory Turnover | 0.93 | 0.93 | 0.74 | 0.72 | 0.70 | 0.84 | 0.83 | 0.83 | 0.93 | 0.96 | 1.02 |
| Days Sales Outstanding | — | 84.42 | 75.83 | 69.66 | 71.88 | 68.00 | 72.92 | 76.86 | 82.17 | 80.89 | 77.24 |
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 | 2.5% | 2.3% | 3.0% | 5.5% | 2.8% | 2.2% | 1.8% | 1.5% | 2.0% | 1.8% | 2.1% |
| Payout Ratio | 52.8% | 52.8% | 79.4% | 124.3% | 146.6% | 62.8% | 73.2% | 53.0% | 48.4% | 35.1% | 35.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.7% | 4.4% | 3.8% | 4.4% | 1.9% | 3.5% | 2.4% | 2.8% | 4.1% | 5.0% | 5.9% |
| FCF Yield | 6.6% | 6.0% | 5.6% | 3.0% | 0.9% | 3.1% | 2.7% | 3.6% | 3.6% | 4.7% | 3.4% |
| Buyback Yield | 3.9% | 3.5% | 0.0% | 0.0% | 1.3% | 0.0% | 0.1% | 0.3% | 0.3% | 0.3% | 2.7% |
| Total Shareholder Yield | 6.4% | 5.8% | 3.0% | 5.5% | 4.1% | 2.2% | 1.9% | 1.8% | 2.3% | 2.1% | 4.8% |
| Shares Outstanding | — | $436M | $438M | $218M | $438M | $439M | $438M | $438M | $438M | $438M | $446M |
Margin compression from competition
Based on reported figures, SNN trades at a forward P/E of 13.59, which represents a significant discount to pure-play U.S. peers like Stryker, suggesting that the market remains cautious regarding the company's ability to consistently execute its 12-Point Plan and close the structural margin gap.
The current valuation multiple appears to bake in a lower growth trajectory compared to its orthopaedic competitors, likely due to historical volatility in earnings. Investors should monitor whether the current discount is a structural mispricing of the Advanced Wound Management segment or a rational reflection of the firm's historical difficulty in maintaining operating margin parity.
According to recent financial statements, SNN's ROIC has hovered between 2.4% and 5.2% over the last ten quarters, a trend that indicates the company is struggling to generate returns on invested capital that meaningfully exceed its cost of capital in a competitive medtech environment.
The persistent gap between SNN's returns and those of higher-performing peers suggests that the capital-intensive nature of its surgical tray infrastructure may be acting as a drag on overall efficiency. Management's focus on operational rigor appears necessary to improve these returns, as current levels may not be sufficient to drive long-term shareholder value creation.
As reported in quarterly filings, SNN's cash conversion cycle reached 138 days in 2025Q4, largely driven by a high days-inventory-outstanding metric of 190 days, which highlights the significant capital tied up in the surgical instrument sets required to support its global orthopaedic and sports medicine operations.
This high inventory dependence suggests that SNN's working capital efficiency is structurally constrained by the need to maintain extensive on-site hospital inventory. While the recent improvement in the cash conversion cycle is a positive signal, investors should watch whether this is a sustainable trend or merely a temporary fluctuation in supply chain management.
The P/E ratio is frequently misapplied to SNN, as it obscures the significant impact of non-recurring restructuring charges and the heavy depreciation associated with its surgical tray infrastructure, which together distort the company's true underlying earning power and cash-generating capability.
Analysts should instead prioritize free cash flow yield or EV/EBITDA, as these metrics better account for the capital-intensive nature of the business and the cash-heavy reality of its operations. Relying solely on P/E may lead to an inaccurate assessment of the firm's valuation relative to its peers, as it fails to capture the cash-generative potential of the Advanced Wound Management segment.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying SNN stock.
Smith & Nephew plc's current P/E ratio is 21.2x. The historical average is 29.6x. This places it at the 30th percentile of its historical range.
Smith & Nephew plc's current EV/EBITDA is 9.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.7x.
Smith & Nephew plc's return on equity (ROE) is 11.9%. The historical average is 19.9%.
Based on historical data, Smith & Nephew plc is trading at a P/E of 21.2x. This is at the 30th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Smith & Nephew plc's current dividend yield is 2.49% with a payout ratio of 52.8%.
Smith & Nephew plc has 68.0% gross margin and 16.3% operating margin. Operating margin between 10-20% is typical for established companies.
Smith & Nephew plc's Debt/EBITDA ratio is 2.1x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.