Latest Ratios: P/E Ratio 55.8x · EV/EBITDA 24.4x · ROE 29.2%. (2020–2025 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 |
|---|---|---|---|---|---|---|---|
| Market Cap | $17.9B | $16.0B | $10.0B | — | — | — | — |
| Enterprise Value | $18.5B | $16.5B | $10.7B | — | — | — | — |
| P/E Ratio → | 55.79 | 49.29 | 30.79 | — | — | — | — |
| P/S Ratio | 5.88 | 5.24 | 3.49 | — | — | — | — |
| P/B Ratio | 14.00 | 12.37 | 10.77 | — | — | — | — |
| P/FCF | 44.51 | 39.72 | 34.93 | — | — | — | — |
| P/OCF | 29.90 | 26.68 | 19.13 | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.42 | 3.72 | — | — | — | — |
| EV / EBITDA | 24.37 | 21.83 | 16.82 | — | — | — | — |
| EV / EBIT | 35.37 | 32.91 | 22.69 | — | — | — | — |
| EV / FCF | — | 41.06 | 37.15 | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|
| Gross Margin | 49.1% | 49.1% | 48.1% | 47.2% | 47.9% | 46.8% | 44.8% |
| Operating Margin | 17.1% | 17.1% | 16.1% | 15.1% | 16.3% | 11.4% | 15.8% |
| Net Profit Margin | 10.6% | 10.6% | 11.4% | 9.7% | 11.6% | 8.9% | 10.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| ROE | 29.2% | 29.2% | 40.5% | 29.6% | 17.2% | 9.7% | 10.2% |
| ROA | 11.4% | 11.4% | 11.8% | 9.5% | 9.2% | 6.2% | 6.5% |
| ROIC | 23.1% | 23.1% | 23.1% | 21.4% | 24.0% | 16.4% | 18.6% |
| ROCE | 24.8% | 24.8% | 22.6% | 20.0% | 16.8% | 10.0% | 12.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.64 | 0.64 | 1.00 | 1.57 | 0.61 | 0.07 | 0.07 |
| Debt / EBITDA | 1.10 | 1.10 | 1.47 | 1.90 | 1.21 | 0.36 | 0.32 |
| Net Debt / Equity | — | 0.41 | 0.68 | 1.10 | 0.31 | -0.50 | -0.36 |
| Net Debt / EBITDA | 0.71 | 0.71 | 1.00 | 1.34 | 0.62 | -2.74 | -1.59 |
| Debt / FCF | — | 1.33 | 2.22 | 2.97 | 1.63 | -3.74 | -2.20 |
| Interest Coverage | 12.26 | 12.26 | 8.55 | 10.89 | 23.53 | 275.00 | 334.00 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Current Ratio | 1.32 | 1.32 | 1.24 | 1.34 | 1.44 | 2.52 | 2.38 |
| Quick Ratio | 1.32 | 1.32 | 1.24 | 1.34 | 1.44 | 2.52 | 2.38 |
| Cash Ratio | 0.39 | 0.39 | 0.40 | 0.44 | 0.54 | 1.74 | 1.45 |
| Asset Turnover | — | 1.05 | 1.02 | 0.98 | 0.93 | 0.69 | 0.65 |
| Inventory Turnover | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 74.84 | 74.53 | 80.41 | 85.02 | 80.77 | 89.78 |
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 |
|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.6% | 0.6% | 1.0% | — | — | — | — |
| Payout Ratio | 32.0% | 32.0% | 30.7% | 261.5% | 546.1% | 89.3% | 3.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.8% | 2.0% | 3.2% | — | — | — | — |
| FCF Yield | 2.2% | 2.5% | 2.9% | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | — | — | — | — |
| Total Shareholder Yield | 0.6% | 0.6% | 1.0% | — | — | — | — |
| Shares Outstanding | — | $203M | $201M | $200M | $200M | $200M | $200M |
Regulatory and labor dependency
Based on current market data, ULS trades at a forward P/E of 43.07, a multiple that appears to price in significant long-term growth expectations that may be difficult to sustain given the company's historical revenue trajectory and the inherent cyclicality of its industrial testing segments.
The current valuation premium relative to broader industrial peers suggests investors are assigning a scarcity value to the company's regulatory gatekeeper status. However, with a PEG ratio of 9.32, the market may be overestimating the speed at which the Software and Advisory segment can scale to justify such elevated earnings multiples.
As reported in recent financial statements, ULS has maintained a modest ROIC trend, fluctuating between 4.6% and 7.0% over the last ten quarters, which indicates that the company's heavy investment in specialized laboratory infrastructure may be acting as a drag on overall capital compounding efficiency.
While the company's moat is structurally sound, the relatively low ROIC suggests that the capital-intensive nature of physical testing facilities limits the ability to generate high returns on incremental invested capital. Investors should monitor whether the shift toward software-led revenue can improve these returns by reducing the reliance on physical asset expansion.
According to quarterly filings, ULS exhibits a persistent DSO trend, with figures ranging from 67 to 82 days, suggesting that the company's ability to convert its service-based revenue into cash is hampered by the long-term nature of industrial certification projects and complex client billing cycles.
The lack of significant improvement in the cash conversion cycle implies that ULS has limited leverage over its customer base regarding payment terms, likely due to the project-based nature of its industrial testing. This inefficiency warrants further investigation into whether the company can optimize its billing processes as it pivots toward more recurring software revenue.
Based on the company's reported figures, the debt-to-equity ratio has improved significantly from 1.57 in 2023Q4 to 0.40 in 2026Q1, reflecting a disciplined approach to balance sheet management that provides the firm with substantial capacity for future strategic acquisitions or capital returns.
The reduction in debt-to-EBITDA from 8.18 to 3.91 over the same period indicates a much more comfortable interest coverage profile, which mitigates the risk of credit market volatility. This transition to a healthier balance sheet appears to be a deliberate effort to align the company's financial profile with its new status as a public entity.
Investors frequently misapply standard industrial P/E multiples to ULS, failing to account for the high-margin, recurring revenue potential of its software-enabled safety platform, which should arguably be valued more in line with specialized regulatory data providers rather than traditional testing and inspection firms.
By treating ULS as a pure-play industrial service provider, the market may be obscuring the value of its proprietary data and software assets. A more appropriate analytical framework would involve a sum-of-the-parts valuation that separates the commoditized testing business from the higher-growth, software-driven advisory segment.
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Quick answers to the most common questions about buying ULS stock.
UL Solutions Inc.'s current P/E ratio is 55.8x. The historical average is 40.0x. This places it at the 100th percentile of its historical range.
UL Solutions Inc.'s current EV/EBITDA is 24.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.3x.
UL Solutions Inc.'s return on equity (ROE) is 29.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 22.7%.
Based on historical data, UL Solutions Inc. is trading at a P/E of 55.8x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
UL Solutions Inc.'s current dividend yield is 0.57% with a payout ratio of 32.0%.
UL Solutions Inc. has 49.1% gross margin and 17.1% operating margin. Operating margin between 10-20% is typical for established companies.
UL Solutions Inc.'s Debt/EBITDA ratio is 1.1x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.