Latest Ratios: P/E Ratio 68.9x · EV/EBITDA 8.6x · ROE 3.7%. (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 | $1.9B | $1.3B | $762M | $810M | $770M | $784M | $195M | $192M | $149M | $541M | $336M |
| Enterprise Value | $3.4B | $2.8B | $2.3B | $2.2B | $2.1B | $2.2B | $373M | $1.2B | $1.1B | $1.4B | $1.2B |
| P/E Ratio → | 68.91 | 44.45 | 337.44 | 6027.27 | 28.23 | 21.67 | 3.44 | — | — | 2.24 | — |
| P/S Ratio | 0.66 | 0.44 | 0.27 | 0.32 | 0.29 | 0.53 | 0.22 | 0.31 | 0.10 | 0.36 | 0.24 |
| P/B Ratio | 2.50 | 1.61 | 0.97 | 0.97 | 0.80 | 0.85 | 0.49 | — | — | — | — |
| P/FCF | 7.77 | 5.23 | 8.57 | 20.99 | 2.47 | 4.40 | 1.57 | 3.67 | — | 12.52 | — |
| P/OCF | 6.60 | 4.44 | 5.33 | 10.00 | 2.22 | 3.90 | 1.41 | 2.96 | 7.90 | 7.10 | 54.33 |
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 | — | 0.96 | 0.81 | 0.86 | 0.78 | 1.50 | 0.42 | 1.97 | 0.73 | 0.91 | 0.89 |
| EV / EBITDA | 8.60 | 7.03 | 6.36 | 7.04 | 5.72 | 12.18 | 2.99 | 16.23 | 8.11 | 7.40 | 8.05 |
| EV / EBIT | 21.52 | 17.53 | 17.61 | 12.02 | 13.88 | 24.13 | 4.47 | 31.37 | — | 9.07 | 78.02 |
| EV / FCF | — | 11.30 | 25.77 | 56.57 | 6.74 | 12.38 | 3.02 | 23.69 | — | 31.78 | — |
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 | 36.5% | 36.5% | 35.1% | 35.9% | 37.7% | 38.3% | 35.6% | 40.1% | 29.7% | 29.5% | 29.1% |
| Operating Margin | 5.5% | 5.5% | 4.7% | 3.6% | 5.9% | 3.0% | 9.4% | 6.5% | 5.8% | 9.4% | 7.8% |
| Net Profit Margin | 1.0% | 1.0% | 0.1% | 0.0% | 0.7% | 1.4% | 6.3% | 2.9% | -8.4% | 16.0% | -3.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 3.7% | 3.7% | 0.3% | 0.0% | 2.1% | 3.2% | 45.9% | — | — | — | — |
| ROA | 0.7% | 0.7% | 0.1% | 0.0% | 0.5% | 0.8% | 4.0% | 1.1% | -7.5% | 14.8% | -2.9% |
| ROIC | 5.2% | 5.2% | 4.4% | 3.0% | 5.1% | 2.3% | 8.5% | 3.8% | 8.8% | 17.9% | 22.7% |
| ROCE | 6.0% | 6.0% | 5.4% | 3.6% | 5.9% | 2.6% | 9.9% | 4.3% | 9.6% | 16.7% | 14.8% |
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 | 2.00 | 2.00 | 2.11 | 1.79 | 1.61 | 1.74 | 0.68 | — | — | — | — |
| Debt / EBITDA | 4.04 | 4.04 | 4.61 | 4.82 | 4.23 | 8.87 | 2.17 | 15.12 | 7.22 | 4.76 | 6.08 |
| Net Debt / Equity | — | 1.87 | 1.95 | 1.64 | 1.38 | 1.54 | 0.45 | — | — | — | — |
| Net Debt / EBITDA | 3.77 | 3.77 | 4.25 | 4.43 | 3.63 | 7.85 | 1.43 | 13.72 | 6.98 | 4.48 | 5.86 |
| Debt / FCF | — | 6.07 | 17.20 | 35.58 | 4.28 | 7.98 | 1.44 | 20.02 | — | 19.26 | — |
| Interest Coverage | 1.65 | 1.65 | 1.41 | 2.00 | 1.99 | 2.87 | 13.43 | 4.57 | — | 2.32 | 0.24 |
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 | 0.79 | 0.79 | 0.83 | 0.75 | 0.75 | 0.78 | 1.09 | 0.76 | 0.79 | 0.70 | 0.61 |
| Quick Ratio | 0.79 | 0.79 | 0.83 | 0.75 | 0.75 | 0.78 | 1.09 | 0.76 | 0.79 | 0.70 | 0.61 |
| Cash Ratio | 0.07 | 0.07 | 0.10 | 0.09 | 0.16 | 0.14 | 0.27 | 0.13 | 0.04 | 0.07 | 0.04 |
| Asset Turnover | — | 0.69 | 0.73 | 0.67 | 0.67 | 0.36 | 0.88 | 0.34 | 0.92 | 0.89 | 0.88 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 112.98 | 114.28 | 117.17 | 100.35 | 188.79 | 97.33 | 281.27 | 109.28 | 113.28 | 111.40 |
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 | — | — | — | — | — | 29.7% | 59.3% | 20.9% | 0.1% | 0.1% | 9.8% |
| Payout Ratio | — | — | — | — | — | 1108.6% | 205.0% | 218.5% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.5% | 2.2% | 0.3% | 0.0% | 3.5% | 4.6% | 29.1% | — | — | 44.7% | — |
| FCF Yield | 12.9% | 19.1% | 11.7% | 4.8% | 40.5% | 22.7% | 63.6% | 27.3% | — | 8.0% | — |
| Buyback Yield | 7.0% | 10.4% | 14.2% | 27.6% | 9.1% | 0.1% | 0.0% | 0.0% | 0.5% | 0.3% | 1.0% |
| Total Shareholder Yield | 7.0% | 10.4% | 14.2% | 27.6% | 9.1% | 29.9% | 59.3% | 20.9% | 0.7% | 0.4% | 10.8% |
| Shares Outstanding | — | $265M | $116M | $122M | $124M | $90M | $78M | $69M | $57M | $55M | $51M |
High leverage and volatility
According to current market data, STGW trades at a forward P/E of 6.68, which, when compared to the broader advertising sector, suggests that investors are heavily discounting the company's ability to convert its aggressive acquisition-led growth into sustainable, high-quality earnings over the long term.
The discrepancy between the trailing P/E of 64.00 and the forward multiple indicates that the market is pricing in a significant recovery in profitability that has yet to materialize in the reported figures. This valuation profile implies that the market views STGW as a high-risk turnaround play rather than a stable compounder, necessitating consistent margin expansion to justify current price levels.
Based on reported financial statements, STGW's ROIC has remained consistently low, hovering near 0.3% to 1.9% over the last ten quarters, which suggests that the company is struggling to generate returns on invested capital that exceed its cost of capital in a meaningful way.
The persistent gap between invested capital and returns highlights the difficulty of integrating a fragmented portfolio of agencies into a cohesive, high-margin entity. Investors should monitor whether the company can improve its capital efficiency, as current trends suggest that the 'buy-and-build' strategy is currently destroying value rather than compounding it.
As reported in recent filings, STGW's DSO has fluctuated between 96 and 126 days, a trend that, when compared to industry peers, indicates significant friction in the company's ability to convert client billings into cash, thereby straining its overall liquidity position.
The extended collection cycle suggests that the company may lack sufficient leverage over its client base to enforce tighter payment terms, which is a critical weakness for a service-oriented business. This inefficiency forces the company to rely more heavily on external financing to bridge the gap between service delivery and cash receipt.
Based on the latest quarterly data, STGW's debt-to-equity ratio has climbed to 2.29, a level that appears increasingly precarious given the company's thin net margins and the inherent volatility of its cash flow generation in the current economic environment.
The high leverage ratio leaves the company with minimal room for operational error, as interest coverage remains thin and susceptible to any further contraction in operating income. This financial structure suggests that future M&A activity may be constrained unless the company can significantly improve its internal cash generation to deleverage the balance sheet.
Investors frequently misapply traditional agency P/E multiples to STGW, which obscures the reality that the company's current earnings are heavily impacted by non-recurring integration costs and stock-based compensation that do not reflect the underlying economic potential of its Marketing Cloud software assets.
By focusing on headline P/E, analysts may overlook the structural shift toward recurring software revenue, which warrants a different valuation framework than the one used for legacy holding companies. A more appropriate metric would be an adjusted EV/Revenue or a focus on organic growth rates, as these better capture the company's transition away from labor-intensive service models.
Includes 30+ ratios · 30 years · Updated daily
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying STGW stock.
Stagwell Inc.'s current P/E ratio is 68.9x. The historical average is 16.2x. This places it at the 100th percentile of its historical range.
Stagwell Inc.'s current EV/EBITDA is 8.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.9x.
Stagwell Inc.'s return on equity (ROE) is 3.7%. The historical average is -4.1%.
Based on historical data, Stagwell Inc. is trading at a P/E of 68.9x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Stagwell Inc. has 36.5% gross margin and 5.5% operating margin.
Stagwell Inc.'s Debt/EBITDA ratio is 4.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.