Latest Ratios: P/E Ratio 321.3x · EV/EBITDA 23.9x · ROE 3.3%. (2018–2025 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 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.1B | $3.6B | $8.3B | $4.1B | $2.2B | $2.3B | $4.6B | — | — |
| Enterprise Value | $2.1B | $3.6B | $8.3B | $4.1B | $2.2B | $2.3B | $4.3B | — | — |
| P/E Ratio → | 321.25 | 499.25 | — | — | — | — | — | — | — |
| P/S Ratio | 2.78 | 4.81 | 12.41 | 7.15 | 4.42 | 5.51 | 12.23 | — | — |
| P/B Ratio | 8.95 | 13.90 | 46.13 | 16.17 | 9.45 | 10.19 | 19.98 | — | — |
| P/FCF | 30.00 | 51.94 | 83.53 | 670.78 | 633.42 | 49.98 | 171.41 | — | — |
| P/OCF | 12.56 | 21.75 | 50.20 | 55.04 | 34.01 | 25.98 | 76.97 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.87 | 12.49 | 7.15 | 4.38 | 5.41 | 11.43 | — | — |
| EV / EBITDA | 23.85 | 40.92 | 98.56 | 71.81 | 40.57 | 54.98 | — | — | — |
| EV / EBIT | — | 481.03 | 545.42 | — | — | — | — | — | — |
| EV / FCF | — | 52.60 | 84.09 | 670.58 | 628.08 | 49.03 | 160.12 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 60.7% | 60.7% | 63.9% | 60.9% | 60.7% | 62.0% | 55.9% | 65.7% | 64.9% |
| Operating Margin | -1.0% | -1.0% | -0.3% | -3.1% | -1.6% | -0.7% | -28.0% | 9.9% | -1.0% |
| Net Profit Margin | 1.0% | 1.0% | -7.9% | -2.3% | -2.5% | -0.3% | -20.0% | 9.7% | -2.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 3.3% | 3.3% | -24.4% | -5.4% | -5.4% | -0.6% | -128.4% | — | — |
| ROA | 0.6% | 0.6% | -5.5% | -1.8% | -1.8% | -0.2% | -18.2% | 12.9% | -2.8% |
| ROIC | -2.2% | -2.2% | -0.7% | -5.7% | -3.1% | -3.9% | — | — | — |
| ROCE | -1.2% | -1.2% | -0.5% | -5.5% | -2.6% | -1.0% | -106.4% | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.39 | 1.39 | 1.96 | 0.26 | 0.32 | 0.12 | 0.00 | — | — |
| Debt / EBITDA | 4.04 | 4.04 | 4.16 | 1.18 | 1.39 | 0.68 | — | 0.90 | 2.49 |
| Net Debt / Equity | — | 0.18 | 0.31 | -0.00 | -0.08 | -0.19 | -1.32 | — | — |
| Net Debt / EBITDA | 0.51 | 0.51 | 0.66 | -0.02 | -0.34 | -1.07 | — | -0.43 | -0.04 |
| Debt / FCF | — | 0.66 | 0.56 | -0.20 | -5.33 | -0.95 | -11.29 | -0.44 | -0.02 |
| Interest Coverage | — | — | — | -4.21 | -3.95 | -2.99 | -33.67 | 15.65 | -1.34 |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.98 | 0.98 | 1.00 | 0.60 | 0.60 | 0.53 | 1.38 | 0.49 | 0.55 |
| Quick Ratio | 0.98 | 0.98 | 1.00 | 0.60 | 0.60 | 0.53 | 1.38 | 0.49 | 0.55 |
| Cash Ratio | 0.55 | 0.55 | 0.57 | 0.18 | 0.26 | 0.20 | 1.04 | 0.23 | 0.23 |
| Asset Turnover | — | 0.59 | 0.57 | 0.75 | 0.68 | 0.63 | 0.67 | 1.21 | 1.27 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 89.46 | 90.01 | 90.39 | 76.39 | 65.98 | 75.17 | 79.89 | 83.39 |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | 0.0% | 0.1% | 3.2% | — | — |
| Payout Ratio | — | — | — | — | — | — | — | 92.0% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.3% | 0.2% | — | — | — | — | — | — | — |
| FCF Yield | 3.3% | 1.9% | 1.2% | 0.1% | 0.2% | 2.0% | 0.6% | — | — |
| Buyback Yield | 0.5% | 0.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.5% | 0.3% | 0.0% | 0.0% | 0.0% | 0.1% | 3.2% | — | — |
| Shares Outstanding | — | $180M | $155M | $152M | $150M | $148M | $132M | $146M | $130M |
Cloud transition execution risk
According to current market data, Vertex trades at a trailing P/E of 284.25, a multiple that appears disconnected from recent negative earnings and suggests investors are pricing in a significant, yet unproven, long-term margin expansion as the company completes its transition to a cloud-native subscription model.
The forward P/E of 14.24 implies a sharp expected recovery in profitability that may be overly optimistic given the persistent margin compression observed in recent quarters. Investors should monitor whether this valuation gap narrows through actual earnings growth or if the multiple faces downward pressure as the market reconciles the company's high-touch service model with pure-play SaaS peers.
Based on reported figures, Vertex's ROIC has trended into negative territory, reaching -0.7% in 2026Q1, which indicates that the company is currently failing to generate returns on invested capital that exceed its cost of capital during this intensive phase of cloud-based infrastructure investment.
The decay in return metrics suggests that the capital deployed into the business is not yet yielding the expected operational efficiencies. This trend warrants further investigation into whether the current investment cycle is creating a durable competitive advantage or if the company is simply struggling to scale its legacy-heavy cost structure.
As reported in recent financial statements, Vertex's asset turnover has remained suppressed at 0.16, reflecting a capital-intensive business model that struggles to convert its significant asset base into rapid revenue growth compared to more agile, cloud-native software competitors in the enterprise tax compliance space.
The persistent DSO levels, hovering around 78 days, suggest that the company lacks significant leverage over its enterprise customer base regarding payment terms. This inefficiency in the cash conversion cycle highlights the high-touch, consultative nature of the business, which may continue to act as a drag on overall operational scalability.
According to quarterly filings, the company's debt-to-equity ratio has climbed to 1.42, a notable increase from historical levels that indicates a shift toward debt-funded operations to support ongoing strategic initiatives and share repurchases despite the company's current lack of consistent GAAP profitability.
The rising debt-to-EBITDA ratio, which reached 13.93 in 2026Q1, suggests that debt service capacity is becoming increasingly strained. Investors should monitor this trend closely, as the lack of a clear interest coverage buffer may limit the company's ability to navigate potential macroeconomic headwinds or further operational setbacks.
The most commonly misapplied metric for Vertex is the standard EV/Sales multiple, which obscures the underlying reality that a significant portion of the company's revenue is derived from lower-margin professional services rather than pure, high-margin software subscriptions.
By treating Vertex as a pure-play SaaS entity, analysts often overlook the structural costs associated with enterprise implementations and legacy on-premise support. A more accurate assessment would involve adjusting for the service-to-subscription mix to avoid overestimating the company's long-term margin potential and scalability.
Includes 30+ ratios · 8 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying VERX stock.
Vertex, Inc.'s current P/E ratio is 321.3x. This places it at the 50th percentile of its historical range.
Vertex, Inc.'s current EV/EBITDA is 23.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 61.4x.
Vertex, Inc.'s return on equity (ROE) is 3.3%. The historical average is -26.8%.
Based on historical data, Vertex, Inc. is trading at a P/E of 321.3x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Vertex, Inc. has 60.7% gross margin and -1.0% operating margin.
Vertex, Inc.'s Debt/EBITDA ratio is 4.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.