Latest Ratios: P/E Ratio 20.6x · EV/EBITDA 10.4x · ROE 11.3%. (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 | $4.5B | $3.5B | $3.1B | $3.9B | $3.0B | $3.1B | $2.4B | $2.1B | $2.1B | $4.6B | $3.4B |
| Enterprise Value | $6.6B | $5.6B | $5.5B | $4.3B | $3.5B | $3.6B | $3.1B | $2.9B | $3.0B | $4.9B | $4.5B |
| P/E Ratio → | 20.63 | 16.03 | 9.32 | 7.60 | 9.89 | 14.32 | 268.38 | 10.20 | 8.78 | 41.21 | — |
| P/S Ratio | 0.83 | 0.65 | 0.61 | 0.76 | 0.67 | 0.80 | 0.80 | 0.49 | 0.47 | 1.21 | 0.77 |
| P/B Ratio | 2.17 | 1.69 | 1.71 | 2.35 | 2.51 | 2.81 | 2.65 | 2.29 | 2.46 | 3.86 | 2.24 |
| P/FCF | 14.04 | 10.99 | 16.53 | 11.82 | 19.56 | 13.33 | 15.20 | 33.15 | — | 41.79 | 11.19 |
| P/OCF | 10.27 | 8.04 | 9.58 | 8.54 | 11.35 | 10.62 | 10.85 | 12.33 | 22.51 | 29.91 | 9.02 |
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 | — | 1.03 | 1.06 | 0.83 | 0.80 | 0.93 | 1.00 | 0.67 | 0.66 | 1.30 | 1.02 |
| EV / EBITDA | 10.36 | 8.81 | 8.97 | 6.20 | 7.55 | 9.56 | 25.93 | 7.56 | 6.29 | 16.74 | — |
| EV / EBIT | 13.81 | 11.74 | 10.97 | 6.68 | 8.47 | 11.47 | 39.82 | 8.67 | 8.26 | 21.40 | — |
| EV / FCF | — | 17.32 | 28.86 | 12.94 | 23.25 | 15.48 | 19.03 | 45.11 | — | 45.06 | 14.96 |
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 | 19.4% | 19.4% | 20.8% | 22.8% | 19.7% | 19.5% | 17.5% | 20.4% | 21.3% | 20.2% | 17.5% |
| Operating Margin | 8.8% | 8.8% | 10.3% | 12.4% | 9.5% | 8.4% | 2.2% | 7.7% | 9.1% | 6.0% | -3.2% |
| Net Profit Margin | 4.1% | 4.1% | 6.5% | 10.1% | 6.8% | 5.7% | -0.3% | 1.2% | 2.5% | 3.4% | -4.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.3% | 11.3% | 19.1% | 36.3% | 26.2% | 21.8% | -1.1% | 6.1% | 11.1% | 9.5% | -10.3% |
| ROA | 3.7% | 3.7% | 7.2% | 15.4% | 10.0% | 7.5% | -0.3% | 1.6% | 3.3% | 3.0% | -3.3% |
| ROIC | 8.6% | 8.6% | 12.7% | 25.2% | 18.8% | 15.6% | 3.2% | 14.7% | 19.0% | 8.1% | -3.6% |
| ROCE | 9.9% | 9.9% | 14.7% | 27.6% | 20.6% | 15.4% | 3.0% | 14.6% | 17.6% | 7.6% | -3.6% |
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 | 1.34 | 1.34 | 1.48 | 0.44 | 0.73 | 0.69 | 1.39 | 1.40 | 1.42 | 0.83 | 1.04 |
| Debt / EBITDA | 4.44 | 4.44 | 4.47 | 1.07 | 1.85 | 2.03 | 10.85 | 3.40 | 2.58 | 3.34 | — |
| Net Debt / Equity | — | 0.97 | 1.27 | 0.22 | 0.47 | 0.45 | 0.67 | 0.83 | 0.99 | 0.30 | 0.75 |
| Net Debt / EBITDA | 3.22 | 3.22 | 3.83 | 0.54 | 1.20 | 1.32 | 5.22 | 2.01 | 1.80 | 1.22 | — |
| Debt / FCF | — | 6.33 | 12.33 | 1.12 | 3.70 | 2.14 | 3.83 | 11.96 | — | 3.27 | 3.77 |
| Interest Coverage | 2.68 | 2.68 | 5.58 | 10.16 | 8.47 | 6.12 | 1.17 | 3.82 | 4.92 | 3.42 | -1.65 |
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 | 2.30 | 2.30 | 2.16 | 2.01 | 1.96 | 1.94 | 2.60 | 2.32 | 1.99 | 2.30 | 1.92 |
| Quick Ratio | 1.36 | 1.36 | 1.09 | 0.95 | 0.97 | 1.05 | 1.75 | 1.34 | 1.00 | 1.36 | 1.31 |
| Cash Ratio | 0.65 | 0.65 | 0.36 | 0.33 | 0.30 | 0.29 | 0.92 | 0.61 | 0.30 | 0.61 | 0.30 |
| Asset Turnover | — | 0.88 | 0.89 | 1.43 | 1.42 | 1.36 | 1.01 | 1.36 | 1.30 | 1.10 | 0.89 |
| Inventory Turnover | 3.94 | 3.94 | 3.54 | 3.35 | 3.59 | 3.85 | 4.16 | 4.09 | 2.93 | 3.12 | 4.29 |
| Days Sales Outstanding | — | 49.15 | 45.78 | 38.82 | 45.23 | 47.68 | 56.52 | 40.10 | 49.05 | 55.79 | 42.10 |
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 | 1.0% | 1.3% | 1.5% | 1.1% | 1.2% | 1.1% | 0.3% | 1.5% | 1.4% | 0.6% | 0.9% |
| Payout Ratio | 20.4% | 20.4% | 13.7% | 8.3% | 11.9% | 15.2% | — | 57.7% | 26.4% | 22.9% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.8% | 6.2% | 10.7% | 13.2% | 10.1% | 7.0% | 0.4% | 9.8% | 11.4% | 2.4% | — |
| FCF Yield | 7.1% | 9.1% | 6.0% | 8.5% | 5.1% | 7.5% | 6.6% | 3.0% | — | 2.4% | 8.9% |
| Buyback Yield | 1.2% | 1.6% | 1.6% | 1.6% | 3.4% | 0.1% | 2.3% | 0.3% | 20.2% | 20.2% | 2.4% |
| Total Shareholder Yield | 2.2% | 2.9% | 3.0% | 2.7% | 4.6% | 1.2% | 2.6% | 1.8% | 21.6% | 20.9% | 3.3% |
| Shares Outstanding | — | $66M | $68M | $68M | $69M | $71M | $70M | $72M | $77M | $95M | $108M |
Cyclical margin compression risk
Based on current market data, TEX trades at a forward P/E of 14.67, which appears to reflect a significant cyclical discount compared to broader industrial peers, suggesting that investors remain skeptical regarding the durability of earnings amidst the company's recent transition into negative profitability territory.
The divergence between the TTM P/E of 21.56 and the forward multiple implies that the market is pricing in a recovery that may be overly optimistic given the recent margin contraction. This valuation gap warrants further investigation into whether the current multiple is a value opportunity or a reflection of structural risks inherent in the company's heavy equipment business model.
As reported in financial statements, ROIC has deteriorated from a peak of 6.8% in 2024Q2 to a negative 1.4% in 2026Q1, indicating that the company is currently failing to generate returns above its cost of capital while simultaneously expanding its asset base through aggressive acquisition activity.
The sharp decline in ROIC suggests that recent capital deployment is not yet yielding the expected operational synergies, potentially due to integration challenges or a mismatch between acquisition costs and current market demand. Investors should monitor whether this trend represents a temporary dip or a more permanent erosion of the company's ability to compound value for shareholders.
According to quarterly data, the cash conversion cycle has trended toward 78 days in 2026Q1, reflecting a persistent struggle to optimize inventory levels and manage receivables effectively as the company navigates a volatile demand environment for its aerial work platforms and materials processing equipment.
The increase in days inventory outstanding, which reached 81 days in the most recent quarter, suggests that the company is carrying excess stock that may be difficult to liquidate in a softening construction market. This inefficiency in working capital management directly impacts the firm's ability to generate free cash flow, leaving it more vulnerable to cyclical downturns.
Based on reported figures, the company's D/E ratio of 1.34 in 2025Q4 appears to be a significant departure from historical norms, raising questions about the sustainability of the current capital structure as interest coverage ratios have simultaneously weakened to negative levels in the most recent quarter.
The volatility in debt metrics suggests that the company's balance sheet may be more sensitive to interest rate fluctuations than previously assumed. Analysts should scrutinize whether this leverage profile is a result of temporary financing maneuvers or a structural shift that could limit the company's flexibility during future periods of operational stress.
The P/E ratio is frequently misapplied to TEX, as it obscures the significant impact of non-recurring restructuring charges and lumpy revenue recognition patterns that characterize the heavy machinery industry, often leading to a distorted view of the company's true underlying earning power and operational health.
Instead of relying on P/E, investors should prioritize EV/EBITDA and FCF yield to better account for the company's capital-intensive nature and the volatility of its cash flows. Focusing on these metrics provides a clearer picture of the firm's ability to service debt and fund operations without the noise of accounting adjustments that frequently plague earnings-based valuation models.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying TEX stock.
Terex Corporation's current P/E ratio is 20.6x. The historical average is 20.3x. This places it at the 72th percentile of its historical range.
Terex Corporation's current EV/EBITDA is 10.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.8x.
Terex Corporation's return on equity (ROE) is 11.3%. The historical average is 15.7%.
Based on historical data, Terex Corporation is trading at a P/E of 20.6x. This is at the 72th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Terex Corporation's current dividend yield is 0.99% with a payout ratio of 20.4%.
Terex Corporation has 19.4% gross margin and 8.8% operating margin.
Terex Corporation's Debt/EBITDA ratio is 4.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.