Latest Ratios: P/E Ratio -7.5x · EV/EBITDA N/A · ROE -22.3%. (2012–2024 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $226M | $336M | $311M | $230M | $331M | $447M | $503M | $925M | $1.1B | $1.1B | $781M |
| Enterprise Value | $125M | $236M | $190M | $77M | $117M | $210M | $364M | $752M | $894M | $977M | $696M |
| P/E Ratio → | -7.47 | — | — | — | — | 5.83 | — | — | — | — | — |
| P/S Ratio | 1.29 | 1.92 | 1.96 | 1.42 | 1.43 | 1.60 | 1.50 | 2.62 | 3.29 | 3.81 | 3.01 |
| P/B Ratio | 1.94 | 2.85 | 1.94 | 1.16 | 1.00 | 1.17 | 1.54 | 2.67 | 3.39 | 4.70 | 3.36 |
| P/FCF | — | — | — | — | 94.44 | 15.48 | 49.45 | 119.66 | 460.15 | — | — |
| P/OCF | 29.33 | 43.67 | — | — | 23.32 | 11.42 | 24.70 | 37.27 | 48.04 | 381.52 | — |
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 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.34 | 1.20 | 0.48 | 0.51 | 0.75 | 1.09 | 2.13 | 2.77 | 3.52 | 2.68 |
| EV / EBITDA | — | — | — | — | — | 28.90 | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | 33.48 | 7.28 | 35.82 | 97.28 | 387.12 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 85.0% | 85.0% | 90.0% | 90.0% | 90.4% | 92.3% | 91.7% | 91.2% | 91.3% | 90.9% | 90.9% |
| Operating Margin | -21.2% | -21.2% | -35.6% | -77.8% | -14.4% | -6.6% | -18.2% | -8.2% | -10.4% | -14.0% | -24.6% |
| Net Profit Margin | -17.7% | -17.7% | -31.4% | -73.5% | -16.5% | 27.5% | -16.4% | -8.0% | -10.2% | -15.0% | -25.0% |
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -22.3% | -22.3% | -27.8% | -45.0% | -10.8% | 21.6% | -16.3% | -8.6% | -12.2% | -18.2% | -26.9% |
| ROA | -17.1% | -17.1% | -21.8% | -37.1% | -9.1% | 17.4% | -13.0% | -7.0% | -9.7% | -14.0% | -21.7% |
| ROIC | -97.7% | -97.7% | -100.5% | -117.2% | -19.1% | -8.3% | -25.2% | -13.8% | -17.4% | -19.9% | -37.6% |
| ROCE | -24.6% | -24.6% | -28.5% | -43.6% | -8.7% | -4.7% | -16.3% | -8.0% | -11.1% | -14.9% | -24.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.10 | 0.10 | 0.09 | 0.12 | 0.10 | 0.10 | 0.13 | 0.07 | 0.09 | 0.13 | 0.12 |
| Debt / EBITDA | — | — | — | — | — | 5.06 | — | — | — | — | — |
| Net Debt / Equity | — | -0.85 | -0.75 | -0.77 | -0.65 | -0.62 | -0.42 | -0.50 | -0.54 | -0.35 | -0.37 |
| Net Debt / EBITDA | — | — | — | — | — | -32.57 | — | — | — | — | — |
| Debt / FCF | — | — | — | — | -60.96 | -8.20 | -13.63 | -22.39 | -73.03 | — | — |
| Interest Coverage | — | — | — | — | — | — | — | -11.01 | -12.90 | -15.38 | -144.43 |
Net cash position: cash ($112M) exceeds total debt ($11M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.11 | 4.11 | 5.63 | 6.43 | 8.57 | 7.58 | 4.43 | 6.15 | 6.41 | 4.32 | 3.91 |
| Quick Ratio | 4.11 | 4.11 | 5.63 | 6.43 | 8.57 | 7.58 | 4.43 | 5.97 | 6.27 | 4.15 | 3.76 |
| Cash Ratio | 3.40 | 3.40 | 4.66 | 5.70 | 7.79 | 6.37 | 3.35 | 4.72 | 5.21 | 3.05 | 2.87 |
| Asset Turnover | — | 1.10 | 0.78 | 0.64 | 0.60 | 0.61 | 0.79 | 0.84 | 0.84 | 0.94 | 0.86 |
| Inventory Turnover | 4.17 | — | — | — | — | — | — | 4.17 | 5.16 | 4.16 | 3.91 |
| Days Sales Outstanding | — | 32.72 | 42.00 | 31.15 | 26.32 | 43.12 | 41.66 | 49.30 | 44.24 | 48.49 | 47.42 |
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 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | 17.1% | — | — | — | — | — |
| FCF Yield | — | — | — | — | 1.1% | 6.5% | 2.0% | 0.8% | 0.2% | — | — |
| Buyback Yield | 8.9% | 6.0% | 0.0% | 13.0% | 9.7% | 9.6% | 0.0% | 0.3% | 0.0% | 0.0% | 0.1% |
| Total Shareholder Yield | 8.9% | 6.0% | 0.0% | 13.0% | 9.7% | 9.6% | 0.0% | 0.3% | 0.0% | 0.0% | 0.1% |
| Shares Outstanding | — | $90M | $90M | $91M | $97M | $106M | $106M | $102M | $95M | $84M | $82M |
Persistent negative operating margins
Based on current market data, TrueCar trades at a P/S ratio of 1.29, which appears to reflect a significant turnaround discount compared to industry peers, suggesting that investors are heavily discounting the company's future growth prospects while potentially overlooking the underlying value of its substantial cash-rich balance sheet.
The negative P/E ratio of -7.47 highlights the absence of GAAP profitability, forcing investors to rely on sales-based multiples that may not capture the company's transition to a digital retailing platform. This valuation suggests the market remains skeptical of management's ability to convert its existing user base into a profitable, high-margin transaction engine.
As reported in financial statements, TrueCar's ROIC has remained deeply negative, reaching -24.4% in 2025Q3, which indicates that the company is currently destroying shareholder value rather than compounding it, a trend that warrants further investigation into the efficacy of recent investments in digital retailing infrastructure.
The persistent gap between invested capital and returns suggests that the company's pivot toward new product offerings has yet to generate the incremental margins required to offset its high fixed-cost base. Investors should monitor whether these returns can reach a break-even point as the company scales its new platform features.
According to recent SEC filings, TrueCar's asset turnover remains low at 0.29, reflecting a business model that struggles to generate sufficient revenue from its existing asset base, while DSO levels exceeding 110 days suggest significant friction in the collection of dealer-related receivables across the platform.
The extended collection periods imply that the company may be offering flexible payment terms to retain dealer participation, which effectively subsidizes the dealer network at the expense of the company's own liquidity. This inefficiency highlights the difficulty of maintaining a high-velocity marketplace when dealer churn remains a constant operational threat.
Based on the latest quarterly data, TrueCar maintains a current ratio of 4.49, providing a robust liquidity cushion that appears sufficient to fund ongoing operational losses for the foreseeable future, even as the company continues to navigate a challenging and highly competitive automotive retail environment.
The absence of meaningful debt, evidenced by a D/E ratio of 0.09, provides the company with significant strategic optionality that its more leveraged peers lack. This liquidity position serves as a critical floor for the stock, though it does not inherently solve the underlying problem of negative operating margins.
As highlighted in financial analysis, the P/E ratio is a fundamentally misapplied metric for TrueCar, as it obscures the company's current transition phase and the significant impact of non-cash stock-based compensation on reported earnings, which consistently distort the true economic reality of the business's operational performance.
Investors should instead focus on EV/Sales or adjusted EBITDA metrics that account for the company's substantial cash position and exclude non-cash expenses. Relying on P/E in this context leads to a misleading assessment of the company's viability, as it fails to account for the capital-light nature of the platform's potential future scale.
Includes 30+ ratios · 13 years · Updated daily
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Quick answers to the most common questions about buying TRUE stock.
TrueCar, Inc.'s current P/E ratio is -7.5x. The historical average is 5.8x.
TrueCar, Inc.'s return on equity (ROE) is -22.3%. The historical average is -22.6%.
Based on historical data, TrueCar, Inc. is trading at a P/E of -7.5x. Compare with industry peers and growth rates for a complete picture.
TrueCar, Inc. has 85.0% gross margin and -21.2% operating margin.