Latest Ratios: P/E Ratio 160.9x · EV/EBITDA 24.9x · ROE 1.8%. (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 | $857M | $666M | $679M | $931M | $683M | $616M | $370M | $198M | $173M | $114M | $90M |
| Enterprise Value | $981M | $790M | $735M | $933M | $746M | $672M | $397M | $235M | $193M | $137M | $117M |
| P/E Ratio → | 160.91 | 125.12 | 46.74 | 68.36 | 63.85 | 54.09 | 47.65 | 24.54 | 24.19 | 19.32 | 19.84 |
| P/S Ratio | 2.58 | 2.01 | 2.44 | 3.59 | 2.96 | 3.00 | 2.14 | 1.15 | 1.07 | 0.74 | 0.63 |
| P/B Ratio | 2.85 | 2.21 | 2.37 | 4.13 | 6.86 | 7.15 | 4.93 | 2.96 | 2.90 | 2.23 | 2.08 |
| P/FCF | 43.82 | 34.05 | 26.33 | 48.13 | 90.67 | 82.48 | 21.76 | 39.82 | 31.04 | 28.63 | 39.37 |
| P/OCF | 24.58 | 19.10 | 17.42 | 28.53 | 40.32 | 34.95 | 15.67 | 17.16 | 13.75 | 11.58 | 11.97 |
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 | — | 2.38 | 2.64 | 3.59 | 3.24 | 3.28 | 2.29 | 1.36 | 1.20 | 0.88 | 0.81 |
| EV / EBITDA | 24.87 | 20.02 | 20.18 | 27.98 | 27.43 | 28.34 | 21.31 | 13.43 | 11.63 | 9.09 | 8.27 |
| EV / EBIT | 73.94 | 59.54 | 38.45 | 46.00 | 46.92 | 48.00 | 35.89 | 21.67 | 18.86 | 14.96 | 14.72 |
| EV / FCF | — | 40.39 | 28.51 | 48.23 | 99.01 | 90.01 | 23.35 | 47.19 | 34.68 | 34.21 | 50.91 |
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 | 32.6% | 32.6% | 32.1% | 32.3% | 29.6% | 28.5% | 26.6% | 24.5% | 24.5% | 24.1% | 24.3% |
| Operating Margin | 4.0% | 4.0% | 6.4% | 7.6% | 7.0% | 6.9% | 6.4% | 6.3% | 6.4% | 5.8% | 5.5% |
| Net Profit Margin | 1.6% | 1.6% | 5.2% | 5.3% | 4.6% | 5.6% | 4.5% | 4.7% | 4.4% | 3.8% | 3.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 1.8% | 1.8% | 5.7% | 8.4% | 11.5% | 14.1% | 11.0% | 12.7% | 12.9% | 12.5% | 11.0% |
| ROA | 1.2% | 1.2% | 4.3% | 5.6% | 5.7% | 7.3% | 6.0% | 6.9% | 7.1% | 6.3% | 5.4% |
| ROIC | 2.6% | 2.6% | 4.7% | 7.6% | 8.0% | 8.7% | 8.1% | 8.9% | 10.0% | 9.4% | 9.4% |
| ROCE | 3.3% | 3.3% | 5.9% | 9.4% | 10.2% | 11.0% | 10.3% | 11.4% | 12.9% | 12.2% | 11.9% |
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 | 0.43 | 0.43 | 0.20 | 0.10 | 0.65 | 0.67 | 0.37 | 0.55 | 0.35 | 0.45 | 0.63 |
| Debt / EBITDA | 3.27 | 3.27 | 1.58 | 0.65 | 2.37 | 2.43 | 1.48 | 2.12 | 1.27 | 1.52 | 1.93 |
| Net Debt / Equity | — | 0.41 | 0.20 | 0.01 | 0.63 | 0.65 | 0.36 | 0.55 | 0.34 | 0.43 | 0.61 |
| Net Debt / EBITDA | 3.14 | 3.14 | 1.54 | 0.06 | 2.31 | 2.37 | 1.45 | 2.09 | 1.22 | 1.48 | 1.87 |
| Debt / FCF | — | 6.34 | 2.18 | 0.10 | 8.34 | 7.53 | 1.58 | 7.36 | 3.63 | 5.58 | 11.54 |
| Interest Coverage | 2.51 | 2.51 | 23.96 | 11.05 | 6.58 | 17.28 | 10.15 | 9.69 | 10.29 | 8.47 | 10.30 |
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 | 2.33 | 2.33 | 2.29 | 3.14 | 2.39 | 2.15 | 1.95 | 2.32 | 2.03 | 1.92 | 1.80 |
| Quick Ratio | 1.99 | 1.99 | 1.87 | 2.62 | 1.79 | 1.70 | 1.48 | 1.64 | 1.39 | 1.32 | 1.28 |
| Cash Ratio | 0.12 | 0.12 | 0.04 | 1.05 | 0.05 | 0.05 | 0.02 | 0.02 | 0.04 | 0.03 | 0.04 |
| Asset Turnover | — | 0.69 | 0.72 | 0.90 | 1.18 | 1.15 | 1.31 | 1.35 | 1.53 | 1.60 | 1.56 |
| Inventory Turnover | 16.31 | 16.31 | 13.05 | 10.09 | 9.58 | 11.53 | 10.93 | 9.21 | 8.50 | 9.30 | 10.60 |
| Days Sales Outstanding | — | 72.41 | 73.83 | 67.92 | 71.56 | 71.76 | 72.39 | 67.65 | 64.85 | 61.28 | 59.04 |
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 | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.6% | 0.8% | 2.1% | 1.5% | 1.6% | 1.8% | 2.1% | 4.1% | 4.1% | 5.2% | 5.0% |
| FCF Yield | 2.3% | 2.9% | 3.8% | 2.1% | 1.1% | 1.2% | 4.6% | 2.5% | 3.2% | 3.5% | 2.5% |
| Buyback Yield | 0.1% | 0.1% | 0.5% | 0.5% | 0.1% | 1.1% | 0.8% | 1.4% | 0.1% | 0.3% | 0.1% |
| Total Shareholder Yield | 0.1% | 0.1% | 0.5% | 0.5% | 0.1% | 1.1% | 0.8% | 1.4% | 0.1% | 0.3% | 0.1% |
| Shares Outstanding | — | $9M | $9M | $8M | $8M | $8M | $8M | $7M | $8M | $7M | $7M |
Labor-driven margin compression
Based on reported figures, Transcat trades at a TTM P/E of 161.81, a multiple that appears disconnected from its 3.6% operating margin and suggests investors are pricing in aggressive future growth rather than current earnings power, as noted in recent market data.
The forward P/E of 52.40 implies that the market expects a significant inflection in profitability that has yet to materialize in the quarterly data. Compared to peers like McGrath RentCorp, which trades at a much lower multiple, Transcat's valuation appears to rely heavily on the narrative of its defensive life sciences exposure rather than tangible bottom-line performance.
According to recent financial statements, Transcat's ROIC has compressed to 0.6% in 2025Q4, a sharp decline from the 3.2% observed in 2023Q4, indicating that the company's aggressive acquisition strategy is currently failing to generate returns that exceed the cost of capital.
The persistent decay in ROIC suggests that the integration of new laboratories is not yet yielding the expected operational synergies. Investors should monitor whether this trend is a temporary byproduct of heavy M&A investment or a structural issue where the company is overpaying for assets that provide limited incremental return.
As reported in quarterly filings, the cash conversion cycle has reached 57 days in 2025Q4, reflecting the inherent difficulty in managing inventory and receivables across a geographically dispersed laboratory network, as evidenced by the recent volatility in DSO and DIO metrics.
The fluctuation in the CCC suggests that working capital management is highly sensitive to the timing of large distribution orders and the integration of new service contracts. This lack of consistency in efficiency metrics may indicate that the company's operational processes are not yet fully optimized to handle its rapid top-line expansion.
Based on the 2025Q4 current ratio of 2.33, Transcat maintains a healthy liquidity buffer, though the rapid depletion of cash reserves from $35.2M in 2023Q3 to $4.9M suggests that the company is prioritizing aggressive capital deployment over maintaining a conservative cash cushion.
While the current ratio appears adequate, the reliance on debt to fund growth warrants investigation into the company's ability to sustain its current pace if credit markets tighten. The liquidity position seems sufficient for operational needs, but it leaves little room for error should the company face a significant, unexpected cash outflow.
The P/E ratio is frequently misapplied to Transcat, as it obscures the significant impact of acquisition-related amortization and integration costs that artificially depress net income, making the company appear far more expensive than its underlying cash-generating capacity might suggest.
Analysts should instead focus on EV/EBITDA or free cash flow metrics to better understand the operational health of the business. By ignoring the non-cash charges associated with the roll-up strategy, the P/E ratio fails to capture the true value of the recurring service revenue stream that defines the company's competitive moat.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying TRNS stock.
Transcat, Inc.'s current P/E ratio is 160.9x. The historical average is 36.5x. This places it at the 100th percentile of its historical range.
Transcat, Inc.'s current EV/EBITDA is 24.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.6x.
Transcat, Inc.'s return on equity (ROE) is 1.8%. The historical average is 5.3%.
Based on historical data, Transcat, Inc. is trading at a P/E of 160.9x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Transcat, Inc. has 32.6% gross margin and 4.0% operating margin.
Transcat, Inc.'s Debt/EBITDA ratio is 3.3x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.