Latest Ratios: P/E Ratio -37.9x · EV/EBITDA N/A · ROE -24.5%. (2011–2025 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 | $5.0B | $4.2B | $5.0B | $4.9B | $2.6B | $5.1B | $5.1B | $2.4B | $1.5B | $1.3B | $707M |
| Enterprise Value | $5.4B | $4.6B | $5.5B | $5.0B | $2.6B | $4.6B | $5.2B | $2.3B | $1.5B | $1.3B | $659M |
| P/E Ratio → | -37.93 | — | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 8.07 | 6.79 | 9.00 | 9.90 | 5.52 | 13.17 | 17.58 | 9.25 | 5.68 | 6.13 | 4.30 |
| P/B Ratio | 9.25 | 7.08 | 10.89 | 10.09 | 5.21 | 8.61 | 54.69 | 25.14 | 12.24 | 11.65 | 8.55 |
| P/FCF | 37.34 | 31.43 | 45.72 | 90.98 | 5507.78 | — | — | — | 109.93 | 120.80 | 200.86 |
| P/OCF | 34.14 | 28.74 | 43.07 | 83.18 | 220.39 | 715.63 | — | — | 65.19 | 81.54 | 96.29 |
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 | — | 7.39 | 10.04 | 10.06 | 5.42 | 11.88 | 17.71 | 9.20 | 5.50 | 5.87 | 4.01 |
| EV / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | 34.17 | 50.96 | 92.48 | 5399.70 | — | — | — | 106.45 | 115.66 | 187.14 |
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 | 79.1% | 79.1% | 83.0% | 85.6% | 85.3% | 84.8% | 84.9% | 86.2% | 89.8% | 90.4% | 90.4% |
| Operating Margin | -23.5% | -23.5% | -19.4% | -26.3% | -24.8% | -27.6% | -26.8% | -29.9% | -10.8% | -6.2% | -9.5% |
| Net Profit Margin | -20.7% | -20.7% | -17.4% | -20.2% | -26.3% | -30.0% | -32.1% | -31.0% | -10.6% | -6.4% | -10.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -24.5% | -24.5% | -20.3% | -20.4% | -22.7% | -33.8% | -100.2% | -72.0% | -23.8% | -14.0% | -21.3% |
| ROA | -7.5% | -7.5% | -6.9% | -9.4% | -11.6% | -14.0% | -21.5% | -26.1% | -10.8% | -6.5% | -10.2% |
| ROIC | -11.0% | -11.0% | -10.0% | -19.3% | -32.3% | -71.2% | -54.8% | -72.0% | -32.5% | -21.8% | -34.2% |
| ROCE | -14.0% | -14.0% | -12.2% | -16.3% | -13.7% | -16.9% | -29.5% | -51.1% | -21.8% | -12.1% | -16.7% |
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 | 0.96 | 0.96 | 1.66 | 0.64 | 0.63 | 0.51 | 2.90 | 0.61 | — | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | 0.62 | 1.25 | 0.17 | -0.10 | -0.84 | 0.41 | -0.13 | -0.39 | -0.50 | -0.58 |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Debt / FCF | — | 2.74 | 5.24 | 1.49 | -108.08 | — | — | — | -3.49 | -5.14 | -13.72 |
| Interest Coverage | -9.01 | -9.01 | -9.00 | -17.64 | -14.19 | -8.58 | -15.25 | -371.57 | -143.44 | -58.77 | -110.27 |
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 | 1.97 | 1.97 | 1.19 | 2.43 | 3.87 | 4.44 | 2.22 | 1.28 | 1.72 | 1.87 | 1.94 |
| Quick Ratio | 1.97 | 1.97 | 1.19 | 2.43 | 3.87 | 4.44 | 2.22 | 1.28 | 1.72 | 1.87 | 1.94 |
| Cash Ratio | 1.40 | 1.40 | 0.80 | 1.74 | 3.20 | 3.81 | 1.63 | 0.75 | 1.09 | 1.17 | 1.29 |
| Asset Turnover | — | 0.35 | 0.33 | 0.45 | 0.45 | 0.35 | 0.53 | 0.80 | 0.95 | 0.89 | 0.90 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 142.14 | 156.76 | 134.93 | 110.32 | 112.75 | 119.49 | 109.72 | 114.92 | 127.85 | 120.36 |
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 | — | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | 2.7% | 3.2% | 2.2% | 1.1% | 0.0% | — | — | — | 0.9% | 0.8% | 0.5% |
| Buyback Yield | 2.3% | 2.7% | 0.0% | 0.9% | 2.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.3% | 2.7% | 0.0% | 0.9% | 2.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $129M | $112M | $109M | $109M | $105M | $94M | $91M | $87M | $82M | $79M |
SaaS transition margin pressure
Based on reported figures, Varonis trades at a price-to-sales multiple of 7.59, which suggests that investors are pricing in significant future recurring revenue expansion rather than current GAAP profitability, a common valuation characteristic for software firms undergoing a structural transition to a subscription-based delivery model.
The forward P/E of 338.94 indicates that the market expects a substantial inflection in earnings as the company scales its SaaS platform. This valuation premium appears to be predicated on the assumption that the company will eventually achieve operating leverage, though it remains sensitive to any deceleration in ARR growth.
As reported in financial statements, Varonis has struggled to generate positive returns on invested capital, with ROIC hovering at -3.8% in 2026Q1, reflecting the heavy upfront investment required to capture market share during the ongoing shift toward a subscription-based enterprise security model.
The persistent negative ROIC suggests that the company is currently destroying value on a GAAP basis as it prioritizes customer acquisition over immediate profitability. Investors should monitor whether the company can improve its capital efficiency as the installed base matures and the need for aggressive sales spending moderates.
According to recent SEC filings, Varonis's DSO has fluctuated significantly, reaching 104 days in 2026Q1, which indicates that the company's cash conversion cycle is heavily influenced by the timing of large enterprise contract renewals rather than consistent, linear operational efficiency across its global customer base.
The high DSO relative to historical norms suggests that the company may be offering extended payment terms to secure long-term subscription commitments. This reliance on large, lumpy renewals warrants further investigation into the sustainability of cash collections during periods of macroeconomic uncertainty.
Based on the provided balance sheet data, the debt-to-equity ratio has increased to 1.13 in 2026Q1, suggesting that management is utilizing the balance sheet to fund operations and acquisitions during the transition, which introduces a higher degree of financial risk compared to the company's historical profile.
While the current leverage remains manageable, the lack of consistent GAAP profitability makes the debt service burden more sensitive to interest rate fluctuations. Investors should monitor whether the company can maintain its current liquidity position without further dilutive financing or increased debt reliance.
As reported in financial statements, the P/E ratio is a fundamentally misapplied metric for Varonis, as it fails to account for the significant non-cash expenses and deferred revenue dynamics that characterize the company's ongoing transition to a subscription-based business model in the cybersecurity sector.
Using P/E to evaluate Varonis ignores the underlying growth in ARR and the deferred revenue pipeline, which are more accurate indicators of the company's long-term earning power. Analysts should instead focus on metrics like P/S or EV/ARR to better capture the value of the recurring revenue stream.
Includes 30+ ratios · 15 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 VRNS stock.
Varonis Systems, Inc.'s current P/E ratio is -37.9x. This places it at the 50th percentile of its historical range.
Varonis Systems, Inc.'s return on equity (ROE) is -24.5%. The historical average is -51.4%.
Based on historical data, Varonis Systems, Inc. is trading at a P/E of -37.9x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Varonis Systems, Inc. has 79.1% gross margin and -23.5% operating margin.