Latest Ratios: P/E Ratio 52.6x · EV/EBITDA 42.4x · ROE 18.6%. (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 | $17.1B | $21.6B | $21.5B | $9.7B | $9.2B | $17.4B | — | — |
| Enterprise Value | $15.8B | $20.2B | $20.7B | $9.2B | $8.8B | $16.7B | — | — |
| P/E Ratio → | 52.64 | 63.41 | 1131.99 | — | — | — | — | — |
| P/S Ratio | 2.78 | 3.50 | 4.34 | 2.52 | 3.38 | 10.23 | — | — |
| P/B Ratio | 8.42 | 10.15 | 13.94 | 8.15 | 8.41 | 15.99 | — | — |
| P/FCF | 28.12 | 35.45 | 70.40 | 104.65 | — | — | — | — |
| P/OCF | 25.87 | 32.61 | 59.84 | 72.09 | — | 8722.74 | — | — |
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 | — | 3.29 | 4.17 | 2.37 | 3.22 | 9.82 | — | — |
| EV / EBITDA | 42.43 | 54.41 | 333.43 | — | — | — | — | — |
| EV / EBIT | 51.76 | 66.37 | 333.43 | — | — | — | — | — |
| EV / FCF | — | 33.29 | 67.56 | 98.62 | — | — | — | — |
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 | 25.8% | 25.8% | 24.0% | 21.6% | 18.7% | 18.4% | 17.0% | 9.3% |
| Operating Margin | 5.0% | 5.0% | 0.3% | -7.4% | -14.1% | -13.4% | -26.7% | -32.0% |
| Net Profit Margin | 5.6% | 5.6% | 0.4% | -6.4% | -10.1% | -28.6% | -30.1% | -31.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | 18.6% | 18.6% | 1.4% | -21.5% | -25.1% | -157.1% | — | — |
| ROA | 12.2% | 12.2% | 0.9% | -13.2% | -15.7% | -38.8% | -45.9% | -68.4% |
| ROIC | 30.8% | 30.8% | 1.8% | -33.7% | -56.1% | -98.0% | — | — |
| ROCE | 15.9% | 15.9% | 1.1% | -22.4% | -29.0% | -22.5% | -54.6% | -128.3% |
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 | 0.02 | 0.02 | 0.02 | 0.04 | 0.09 | 0.09 | — | — |
| Debt / EBITDA | 0.11 | 0.11 | 0.55 | — | — | — | — | — |
| Net Debt / Equity | — | -0.62 | -0.56 | -0.47 | -0.41 | -0.65 | — | — |
| Net Debt / EBITDA | -3.53 | -3.53 | -14.02 | — | — | — | — | — |
| Debt / FCF | — | -2.16 | -2.84 | -6.03 | — | — | — | — |
| Interest Coverage | — | — | — | — | — | -19.00 | -18.65 | — |
Net cash position: cash ($1.4B) exceeds total debt ($40M)
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 | 2.75 | 2.75 | 2.34 | 2.28 | 2.75 | 4.13 | 4.81 | 1.64 |
| Quick Ratio | 2.64 | 2.64 | 2.20 | 2.09 | 2.49 | 3.95 | 4.67 | 1.53 |
| Cash Ratio | 2.05 | 2.05 | 1.75 | 1.70 | 2.06 | 3.60 | 4.27 | 1.08 |
| Asset Turnover | — | 1.96 | 2.01 | 1.97 | 1.55 | 0.98 | 1.06 | 2.18 |
| Inventory Turnover | 40.00 | 40.00 | 31.95 | 24.44 | 17.08 | 22.08 | 35.33 | 39.19 |
| Days Sales Outstanding | — | 7.53 | 8.46 | 11.99 | 10.29 | 11.77 | 14.99 | 24.49 |
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 | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.9% | 1.6% | 0.1% | — | — | — | — | — |
| FCF Yield | 3.6% | 2.8% | 1.4% | 1.0% | — | — | — | — |
| Buyback Yield | 0.6% | 0.5% | 0.3% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.6% | 0.5% | 0.3% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $607M | $591M | $533M | $512M | $503M | $461M | $461M |
Macro-sensitive transaction volume
According to current market data, Toast trades at a forward P/E of 20.14, suggesting that investors are pricing in sustained margin expansion and long-term software adoption rather than the cyclical volatility inherent in its underlying payment processing business model.
The current P/S multiple of 2.55 indicates a valuation premium relative to traditional payment processors, reflecting the market's classification of the firm as a high-growth vertical SaaS provider. This valuation appears to hinge on the assumption that the company can successfully transition its customer base toward higher-margin software modules, thereby justifying a multiple that exceeds that of pure-play transactional entities.
Based on reported figures, ROIC has trended upward from a negative 6.5% in 2023Q4 to 9.6% in 2026Q1, signaling that the company is finally beginning to generate meaningful returns on its historical investments in hardware and customer acquisition infrastructure.
The shift from negative to positive returns on capital suggests that the company has reached a critical mass where operating leverage is effectively offsetting the high initial costs of onboarding new restaurant locations. Investors should monitor whether this trend continues as the company moves into more competitive or lower-margin enterprise segments.
As indicated by the latest financial statements, the cash conversion cycle has remained relatively tight at 12 days in 2026Q1, demonstrating that the company maintains efficient control over its receivables and payables despite the inherent complexity of its hardware-software-fintech ecosystem.
The consistency in the cash conversion cycle suggests that the company's operational processes are well-integrated, preventing significant cash leakage in the settlement process. This efficiency is vital for maintaining liquidity, especially given the company's reliance on transaction-based revenue which can be sensitive to shifts in restaurant industry payment timing.
Based on the most recent quarterly data, the company maintains a current ratio of 2.44, which provides a substantial buffer against potential macroeconomic headwinds or seasonal downturns in the restaurant sector that could otherwise impact transaction volumes.
The strong liquidity position, characterized by a quick ratio of 2.31, indicates that the company is well-positioned to meet its short-term obligations without relying on external financing. This financial flexibility is particularly important given the company's exposure to credit risk through its Toast Capital lending portfolio.
The most commonly misapplied metric for this business is the pure-play SaaS revenue multiple, which obscures the company's significant exposure to cyclical payment processing volumes and the credit risks associated with its lending activities.
Valuing the company solely as a software firm ignores the reality that a large portion of its revenue is tied to transaction volume, which is inherently more cyclical than recurring subscription fees. Analysts should instead consider a blended valuation approach that accounts for both the high-margin software growth and the lower-margin, macro-sensitive fintech processing business.
Includes 30+ ratios · 7 years · Updated daily
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying TOST stock.
Toast, Inc.'s current P/E ratio is 52.6x. The historical average is 63.4x.
Toast, Inc.'s current EV/EBITDA is 42.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 54.4x.
Toast, Inc.'s return on equity (ROE) is 18.6%. The historical average is -36.7%.
Based on historical data, Toast, Inc. is trading at a P/E of 52.6x. Compare with industry peers and growth rates for a complete picture.
Toast, Inc. has 25.8% gross margin and 5.0% operating margin.
Toast, Inc.'s Debt/EBITDA ratio is 0.1x, indicating low leverage. A ratio below 2x is generally considered financially healthy.