Latest Ratios: P/E Ratio -43.7x · EV/EBITDA N/A · ROE -89.5%. (2019–2025 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 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $10.7B | $10.3B | $5.5B | — | — | — | — | — |
| Enterprise Value | $11.0B | $10.5B | $5.6B | — | — | — | — | — |
| P/E Ratio → | -43.69 | — | — | — | — | — | — | — |
| P/S Ratio | 8.45 | 8.09 | 7.89 | — | — | — | — | — |
| P/B Ratio | 21.85 | 20.94 | 97.15 | — | — | — | — | — |
| P/FCF | — | — | — | — | — | — | — | — |
| P/OCF | — | — | — | — | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 8.26 | 8.08 | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 69.6% | 69.6% | 55.0% | 53.8% | 40.6% | 32.4% | 15.3% | 25.9% |
| Operating Margin | -18.8% | -18.8% | -99.7% | -36.9% | -82.8% | -94.5% | -102.9% | -193.0% |
| Net Profit Margin | -19.3% | -19.3% | -101.8% | -40.3% | -90.4% | -100.5% | -111.6% | -185.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | -89.5% | -89.5% | -1252.8% | — | — | — | — | — |
| ROA | -15.3% | -15.3% | -94.7% | -35.8% | -49.9% | -40.4% | -37.4% | -31.1% |
| ROIC | -40.4% | -40.4% | -282.5% | — | — | — | — | — |
| ROCE | -18.8% | -18.8% | -143.0% | -49.7% | -60.8% | -45.7% | -39.6% | -36.7% |
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 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.66 | 1.66 | 8.31 | — | — | — | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | 0.43 | 2.26 | — | — | — | — | — |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — |
| Debt / FCF | — | — | — | — | — | — | — | — |
| Interest Coverage | -3.22 | -3.22 | -12.07 | -3.56 | -12.21 | -16.03 | -10.17 | -4104.39 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.13 | 3.13 | 2.29 | 1.51 | 2.52 | 3.52 | 6.41 | 6.32 |
| Quick Ratio | 3.00 | 3.00 | 2.16 | 1.38 | 2.39 | 3.32 | 6.04 | 6.13 |
| Cash Ratio | 2.03 | 2.03 | 1.54 | 0.85 | 1.74 | 2.42 | 5.06 | 5.20 |
| Asset Turnover | — | 0.56 | 0.75 | 0.94 | 0.51 | 0.49 | 0.25 | 0.17 |
| Inventory Turnover | 7.46 | 7.46 | 8.14 | 8.52 | 8.55 | 7.60 | 4.24 | 5.56 |
| Days Sales Outstanding | — | 89.30 | 81.50 | 64.83 | 100.94 | 116.42 | 169.41 | 187.56 |
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 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | 0.1% | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | — | — | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.1% | — | — | — | — | — |
| Shares Outstanding | — | $174M | $162M | $154M | $170M | $170M | $170M | $161M |
Persistent negative operating margins
Based on recent market data, Tempus AI trades at a 7.70x price-to-sales multiple, which appears to command a significant premium over pure-play diagnostic peers, suggesting investors are pricing in long-term scalability of the AI-driven data licensing segment rather than current, non-existent GAAP profitability or cash flow generation.
The valuation multiple reflects a market expectation that the company will transition from a lab-heavy diagnostic model to a high-margin software-like data business. However, given the lack of positive P/E or EV/EBITDA metrics, this valuation remains highly speculative and sensitive to the company's ability to demonstrate consistent operating leverage in future quarters.
As reported in financial statements, the company's ROIC has remained consistently negative, bottoming out at -34.6% in 2024Q3 and showing only marginal improvement to -9.0% by 2026Q1, which indicates that the firm is currently destroying shareholder value through its aggressive investment in laboratory infrastructure and data curation.
The persistent negative return on capital suggests that the massive capital expenditures required to build the proprietary clinical-genomic data silo have yet to generate sufficient incremental returns. Investors should monitor whether the company can achieve a positive ROIC as the data library matures and the reliance on high-cost sequencing volume decreases.
According to recent quarterly filings, the cash conversion cycle has fluctuated significantly, reaching 71 days in 2026Q1 compared to 25 days in 2023Q4, which suggests that the company is struggling to manage the timing of its diagnostic testing receivables against its laboratory-related payables and inventory requirements.
The instability in the cash conversion cycle highlights the operational friction inherent in balancing a high-volume diagnostic lab with a complex data licensing business. The widening gap between DSO and DPO warrants further investigation, as it may indicate increasing difficulty in collecting payments from a fragmented provider network.
Based on reported figures, the current ratio of 3.31 in 2026Q1 provides a superficial appearance of liquidity, yet this buffer is heavily dependent on external capital raises rather than internal cash generation, leaving the company vulnerable to shifts in market sentiment regarding its long-term path to profitability.
While the current ratio appears healthy relative to historical levels, the underlying cash burn rate suggests that this liquidity is a temporary byproduct of financing activities. The company's reliance on external capital to maintain its current ratio implies that any disruption in capital market access could rapidly compromise its operational stability.
The market frequently misapplies the price-to-sales ratio to Tempus AI, which obscures the underlying quality of revenue by failing to distinguish between low-margin diagnostic testing volume and high-margin data licensing, leading to an overestimation of the company's true operating leverage and long-term margin expansion potential.
Investors should instead focus on the gross margin contribution by segment, as the P/S ratio treats all revenue as equally scalable. A more appropriate metric would be an adjusted EV/Gross Profit, which would better reflect the company's ability to monetize its data library without the drag of its capital-intensive diagnostic lab operations.
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Quick answers to the most common questions about buying TEM stock.
Tempus AI, Inc.'s current P/E ratio is -43.7x. This places it at the 50th percentile of its historical range.
Tempus AI, Inc.'s return on equity (ROE) is -89.5%. The historical average is -89.5%.
Based on historical data, Tempus AI, Inc. is trading at a P/E of -43.7x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Tempus AI, Inc. has 69.6% gross margin and -18.8% operating margin.