Latest Ratios: P/E Ratio 40.4x · EV/EBITDA 9.2x · ROE 2.8%. (2000–2025 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 | $49.8B | $59.4B | $47.7B | $43.9B | $51.7B | $45.2B | $57.5B | $47.5B | $39.4B | $38.4B | $37.2B |
| Enterprise Value | $76.4B | $4.36T | $4.18T | $4.43T | $3.90T | $3.54T | $3.73T | $4.50T | $5.09T | $729.5B | $862.6B |
| P/E Ratio → | 40.39 | 0.29 | 0.44 | 0.30 | 0.16 | 0.20 | 0.15 | 1.07 | 0.59 | 0.21 | 0.32 |
| P/S Ratio | 1.69 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.01 | 0.02 | 0.02 | 0.02 |
| P/B Ratio | 1.06 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 |
| P/FCF | 9.98 | 0.07 | 0.06 | 0.19 | 0.15 | 0.05 | 0.07 | 0.11 | 0.20 | 0.15 | 0.25 |
| P/OCF | 8.11 | 0.06 | 0.05 | 0.06 | 0.05 | 0.04 | 0.06 | 0.07 | 0.12 | 0.10 | 0.14 |
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 | — | 0.91 | 0.91 | 1.04 | 0.97 | 0.99 | 1.17 | 1.37 | 2.43 | 0.41 | 0.50 |
| EV / EBITDA | 9.25 | 3.26 | 3.78 | 5.16 | 3.38 | 3.39 | 3.49 | 6.58 | 11.24 | 1.72 | 2.64 |
| EV / EBIT | 21.59 | 7.62 | 9.30 | 8.87 | 6.29 | 5.90 | 8.79 | 51.02 | 28.95 | 3.21 | 5.72 |
| EV / FCF | — | 5.40 | 4.88 | 18.80 | 11.36 | 3.78 | 4.81 | 9.96 | 26.18 | 2.92 | 5.78 |
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 | 51.1% | 51.1% | 65.5% | 66.4% | 69.1% | 69.0% | 68.9% | 66.9% | 68.5% | 72.0% | 67.7% |
| Operating Margin | 12.0% | 12.0% | 7.5% | 5.0% | 12.2% | 12.9% | 15.9% | 3.1% | 9.8% | 13.7% | 9.0% |
| Net Profit Margin | 4.3% | 4.3% | 2.4% | 3.4% | 7.9% | 6.4% | 11.8% | 1.3% | 5.2% | 10.6% | 6.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 2.8% | 2.8% | 1.5% | 2.1% | 5.3% | 4.2% | 7.6% | 0.9% | 3.0% | 9.4% | 5.8% |
| ROA | 1.4% | 1.4% | 0.7% | 1.0% | 2.3% | 1.8% | 2.9% | 0.3% | 1.2% | 4.4% | 2.8% |
| ROIC | 3.7% | 3.7% | 2.3% | 1.5% | 3.8% | 3.8% | 4.2% | 0.8% | 2.4% | 6.6% | 4.6% |
| ROCE | 4.6% | 4.6% | 2.8% | 1.8% | 4.4% | 4.2% | 4.7% | 0.9% | 2.8% | 7.6% | 5.2% |
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 | 0.63 | 0.63 | 0.65 | 0.67 | 0.69 | 0.76 | 0.90 | 1.08 | 1.11 | 0.49 | 0.59 |
| Debt / EBITDA | 3.67 | 3.67 | 4.09 | 5.64 | 3.79 | 4.16 | 4.34 | 7.45 | 12.70 | 2.33 | 3.50 |
| Net Debt / Equity | — | 0.55 | 0.60 | 0.60 | 0.61 | 0.62 | 0.71 | 0.94 | 0.98 | 0.34 | 0.42 |
| Net Debt / EBITDA | 3.22 | 3.22 | 3.74 | 5.11 | 3.33 | 3.35 | 3.43 | 6.51 | 11.15 | 1.63 | 2.52 |
| Debt / FCF | — | 5.32 | 4.82 | 18.61 | 11.21 | 3.73 | 4.74 | 9.86 | 25.98 | 2.77 | 5.53 |
| Interest Coverage | 1.51 | 1.51 | 3.27 | 470.12 | 5.30 | 4.90 | 3.24 | 60.51 | 3.65 | 7.12 | 6.49 |
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 | 1.27 | 1.27 | 1.01 | 1.11 | 0.97 | 1.21 | 1.53 | 1.13 | 1.21 | 1.46 | 0.92 |
| Quick Ratio | 0.70 | 0.70 | 0.52 | 0.58 | 0.57 | 0.81 | 1.10 | 0.79 | 0.82 | 1.17 | 0.76 |
| Cash Ratio | 0.24 | 0.24 | 0.16 | 0.20 | 0.22 | 0.41 | 0.57 | 0.30 | 0.29 | 0.51 | 0.28 |
| Asset Turnover | — | 0.31 | 0.32 | 0.28 | 0.29 | 0.27 | 0.25 | 0.26 | 0.15 | 0.43 | 0.40 |
| Inventory Turnover | 1.67 | 1.67 | 1.30 | 1.18 | 1.26 | 1.30 | 1.32 | 1.43 | 0.67 | 2.33 | 2.47 |
| Days Sales Outstanding | — | 67.24 | 57.78 | 59.72 | 61.78 | 74.08 | 92.76 | 87.05 | 130.38 | 88.40 | 93.73 |
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 | 4.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Payout Ratio | 162.7% | 162.7% | 280.3% | 199.3% | 88.1% | 123.3% | 75.4% | 638.7% | 131.0% | 75.9% | 123.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.5% | 345.1% | 226.1% | 328.1% | 612.7% | 509.4% | 654.3% | 93.1% | 170.7% | 486.6% | 309.3% |
| FCF Yield | 10.0% | 1362.2% | 1793.7% | 536.7% | 663.8% | 2074.5% | 1347.7% | 950.7% | 493.4% | 649.9% | 401.9% |
| Buyback Yield | 0.7% | 92.2% | 100.0% | 5.3% | 52.0% | 100.0% | 3.7% | 7.9% | 3.0% | 48.8% | 62.2% |
| Total Shareholder Yield | 4.7% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Shares Outstanding | — | $3.2B | $3.2B | $3.2B | $3.1B | $3.2B | $3.1B | $3.1B | $1.9B | $1.6B | $1.6B |
Margin compression from LOE
Based on reported figures, Takeda trades at a TTM P/E of 40.25, which appears elevated relative to peers like Sanofi, suggesting that the market is applying a conglomerate discount to account for the complexity of its multi-segment model and the ongoing patent-related revenue headwinds.
The current valuation reflects significant skepticism regarding the company's ability to transition away from legacy blockbusters like Vyvanse. Investors should monitor whether the forward P/E of 0.27 indicates a potential mispricing of future earnings power or simply reflects the heavy impact of non-cash amortization on GAAP metrics.
As reported in financial statements, Takeda's ROIC has struggled to maintain momentum, hovering near 0.3% in 2025Q4, which indicates that the firm is currently failing to generate returns on invested capital that exceed its cost of capital, largely due to the heavy burden of past acquisition-related goodwill.
The persistent decay in ROIC suggests that the capital-intensive nature of the plasma-derived therapy infrastructure is not yet yielding the expected operational synergies. This trend warrants further investigation into whether management's focus on bolt-on licensing deals can effectively improve capital productivity compared to the historical Shire-driven strategy.
Based on the provided quarterly data, Takeda's cash conversion cycle has expanded to 212 days in 2025Q4, driven by a bloated inventory period of 222 days, which suggests significant inefficiencies in managing the supply chain for its complex, vertically integrated plasma-derived therapy and biologics portfolio.
The extended DIO indicates that the company may be holding excessive safety stock, potentially due to the logistical challenges of plasma collection and fractionation. This inefficiency ties up critical liquidity and limits the firm's ability to respond nimbly to shifts in global demand or regulatory pricing pressures.
According to recent financial disclosures, Takeda's quick ratio has declined to 0.70 in 2025Q4, signaling a tightening liquidity position that leaves the company with limited headroom to absorb unexpected operational shocks or further volatility in its high-cost plasma collection and manufacturing segments.
The reliance on inventory to meet current obligations, as evidenced by the gap between the current and quick ratios, appears risky given the specialized nature of the firm's product portfolio. Investors should monitor whether this liquidity profile forces management to prioritize debt service over necessary R&D investment.
The P/E ratio is frequently misapplied to Takeda's business model because it fails to account for the massive non-cash amortization of intangible assets resulting from the Shire acquisition, which artificially depresses reported net income and obscures the company's true underlying cash-generating capacity.
Analysts should instead prioritize Core Operating Profit and Free Cash Flow to evaluate the firm's performance, as these metrics better reflect the operational reality of the plasma and GI franchises. Relying on GAAP P/E risks misinterpreting a temporary accounting-driven earnings contraction as a permanent decline in business value.
Includes 30+ ratios · 26 years · Updated daily
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Quick answers to the most common questions about buying TAK stock.
Takeda Pharmaceutical Company Limited's current P/E ratio is 40.4x. The historical average is 0.3x. This places it at the 100th percentile of its historical range.
Takeda Pharmaceutical Company Limited's current EV/EBITDA is 9.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 3.2x.
Takeda Pharmaceutical Company Limited's return on equity (ROE) is 2.8%. The historical average is 8.3%.
Based on historical data, Takeda Pharmaceutical Company Limited is trading at a P/E of 40.4x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Takeda Pharmaceutical Company Limited's current dividend yield is 4.00% with a payout ratio of 162.7%.
Takeda Pharmaceutical Company Limited has 51.1% gross margin and 12.0% operating margin. Operating margin between 10-20% is typical for established companies.
Takeda Pharmaceutical Company Limited's Debt/EBITDA ratio is 3.7x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.