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VHCVirnetX Holding Corp
$11.77$49M
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  3. VHC
  4. Financial Ratios

VirnetX Holding Corp (VHC) Financial Ratios

Latest Ratios: P/E Ratio -2.4x · EV/EBITDA N/A · ROE -58.7%. (1998–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

VHC Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$49M$61M$28M$25M$31M$62M$120M$87M$50M$72M$41M
Enterprise Value$34M$45M$14M$2M$-55652450$-80260345$-72549389$84M$43M$69M$34M
P/E Ratio →-2.35—————0.43————
P/S Ratio304.12375.735645.723579.00643.931761.700.401021.61799.8246.5326.49
P/B Ratio1.912.710.710.450.200.330.5415.435.1046.353.68
P/FCF——————0.43————
P/OCF——————0.43————

P/E links to full P/E history page with 30-year chart

VHC EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—279.762855.92343.29-1159.43-2293.15-0.24985.87679.0144.5022.22
EV / EBITDA——————-0.47————
EV / EBIT——————-0.24————
EV / FCF——————-0.26————

VHC Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin85.8%85.8%100.0%-28.6%100.0%100.0%70.2%100.0%100.0%98.3%43.0%
Operating Margin-11691.4%-11691.4%-407940.0%-449214.3%-45991.7%-140497.1%51.5%-23135.3%-40407.9%-1119.7%-1839.0%
Net Profit Margin-11250.0%-11250.0%-363500.0%-398157.1%-75541.7%-122631.4%92.7%-22564.7%-40327.0%-1116.9%-1843.2%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-58.7%-58.7%-38.0%-26.8%-21.5%-20.9%243.8%-247.2%-444.1%-272.1%-217.7%
ROA-45.2%-45.2%-33.0%-26.1%-21.4%-20.4%231.5%-199.3%-268.5%-132.7%-139.2%
ROIC-87.1%-87.1%-51.8%-47.6%-30.3%-98.2%684.0%-606.1%-5494.3%-884.3%-392.7%
ROCE-53.0%-53.0%-40.2%-29.7%-13.1%-24.0%135.4%-252.8%-404.7%-212.0%-188.5%

VHC Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity——0.240.06—0.000.000.02———
Debt / EBITDA——————0.00————
Net Debt / Equity—-0.69-0.35-0.40-0.57-0.77-0.86-0.54-0.77-2.02-0.59
Net Debt / EBITDA——————-1.24————
Debt / FCF——————-0.69————
Interest Coverage———————————

Net cash position: cash ($16M) exceeds total debt ($0)

VHC Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio10.7010.705.3142.93208.29166.0121.673.165.441.163.15
Quick Ratio10.7010.705.3142.93208.29166.0121.673.165.441.163.15
Cash Ratio10.6310.635.2942.70207.97165.7921.373.035.051.023.04
Asset Turnover—0.010.000.000.000.001.290.010.010.220.08
Inventory Turnover———————————
Days Sales Outstanding—42.81—104.29106.46177.290.0121.4734.76——

VHC Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———100.0%——58.9%————
Payout Ratio——————25.3%————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield——————233.1%————
FCF Yield——————233.9%————
Buyback Yield0.0%0.0%0.5%0.0%0.1%0.3%0.0%0.0%0.0%0.0%0.0%
Total Shareholder Yield0.0%0.0%0.5%100.0%0.1%0.3%58.9%0.0%0.0%0.0%0.0%
Shares Outstanding—$4M$4M$4M$4M$4M$4M$3M$3M$3M$3M

Key Metrics

Growth RegimeMixed
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowBurning
Top Statement Risk

Liquidity exhaustion from burn

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Market Pricing Ignores Operational Reality

According to current market data, VHC trades at a P/S multiple of 335.64, a valuation level that appears disconnected from the company's negligible revenue base and suggests investors are pricing in speculative legal outcomes rather than the underlying commercial viability of the firm's nascent software product suite.

The extreme P/S ratio indicates that the market is not valuing VHC as a traditional software entity, but rather as a binary option on future patent litigation. This valuation disconnect warrants caution, as the lack of a forward P/E or PEG ratio reflects the absence of predictable earnings or growth, leaving the stock highly sensitive to idiosyncratic legal news rather than fundamental performance.

Capital Compounding Remains Deeply Negative

Based on reported financial statements, VHC's ROIC has consistently trended in negative territory, reaching -61.4% in 2026Q1, which highlights a structural inability to generate returns on invested capital as the company continues to burn through its remaining cash reserves without achieving meaningful operational scale.

The persistent decay in ROIC suggests that the capital allocated to R&D and legal enforcement is not yielding productive assets. Investors should monitor whether this trend is a permanent feature of the business model, as the current negative returns indicate that every dollar invested is effectively eroding shareholder value rather than compounding it.

Working Capital Metrics Signal Inefficiency

As reported in recent filings, VHC's DPO has remained exceptionally high, often exceeding 5,000 days, which suggests that the company is either delaying payments to vendors or lacks a standard operational cycle typical of a functioning software-as-a-service provider in the current technology landscape.

The lack of meaningful asset turnover, which remains at 0.00, confirms that the company's infrastructure is not being utilized to generate revenue. This inefficiency implies that the firm's working capital management is not aligned with the requirements of a scalable software business, further complicating the transition from a litigation-centric model.

Misapplied P/S Ratio Obscures Risk

The P/S ratio is the most commonly misapplied metric for VHC, as it obscures the company's reliance on non-recurring, lumpy patent settlements rather than predictable subscription revenue, leading to a distorted perception of the firm's growth trajectory and its actual ability to sustain operations through commercial software sales.

Analysts should instead focus on the 'Enterprise Pilot Conversion Rate' and 'Cash Burn Rate' to assess the company's true health. Relying on P/S in this context is misleading because it treats volatile, one-time legal windfalls as if they were recurring software revenue, which fundamentally misrepresents the company's risk profile and long-term sustainability.

Download Financial Ratios Data

Includes 30+ ratios · 28 years · Updated daily

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VHC — Frequently Asked Questions

Quick answers to the most common questions about buying VHC stock.

What is VirnetX Holding Corp's P/E ratio?

VirnetX Holding Corp's current P/E ratio is -2.4x. The historical average is 49.6x.

What is VirnetX Holding Corp's ROE?

VirnetX Holding Corp's return on equity (ROE) is -58.7%. The historical average is -83.8%.

Is VHC stock overvalued?

Based on historical data, VirnetX Holding Corp is trading at a P/E of -2.4x. Compare with industry peers and growth rates for a complete picture.

What are VirnetX Holding Corp's profit margins?

VirnetX Holding Corp has 85.8% gross margin and -11691.4% operating margin.