Latest Ratios: P/E Ratio 40.5x · EV/EBITDA 30.7x · ROE 20.4%. (2019–2025 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 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.2B | $4.5B | $2.9B | $2.1B | $3.5B | $5.0B | — | — |
| Enterprise Value | $8.5B | $6.9B | $5.4B | $4.5B | $5.9B | $7.2B | — | — |
| P/E Ratio → | 40.53 | 28.24 | 17.82 | 18.74 | 10.18 | 7.78 | — | — |
| P/S Ratio | 0.95 | 0.69 | 0.47 | 0.33 | 0.56 | 0.74 | — | — |
| P/B Ratio | 7.17 | 5.00 | 4.42 | 4.70 | 8.83 | 19.55 | — | — |
| P/FCF | 19.91 | 14.58 | 11.88 | 15.47 | 12.97 | 7.37 | — | — |
| P/OCF | 12.45 | 9.11 | 6.91 | 5.29 | 8.10 | 5.90 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.05 | 0.87 | 0.73 | 0.93 | 1.06 | — | — |
| EV / EBITDA | 30.71 | 24.72 | 9.55 | 8.47 | 7.85 | 6.11 | — | — |
| EV / EBIT | 28.77 | 24.72 | 17.61 | 18.26 | 12.37 | 8.24 | — | — |
| EV / FCF | — | 22.04 | 21.89 | 33.77 | 21.61 | 10.51 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 36.4% | 36.4% | 36.7% | 36.3% | 35.6% | 40.7% | 29.0% | 27.5% |
| Operating Margin | 4.5% | 4.5% | 5.0% | 4.0% | 7.5% | 12.8% | -1.9% | -11.9% |
| Net Profit Margin | 2.5% | 2.5% | 2.6% | 1.8% | 5.5% | 9.5% | -1.3% | -11.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | 20.4% | 20.4% | 29.9% | 26.0% | 105.8% | 112.5% | -6.5% | -68.3% |
| ROA | 3.4% | 3.4% | 3.6% | 2.3% | 7.7% | 15.1% | -1.5% | -17.0% |
| ROIC | 7.0% | 7.0% | 7.7% | 6.6% | 13.9% | 25.9% | -2.4% | -18.0% |
| ROCE | 8.9% | 8.9% | 10.1% | 8.0% | 16.5% | 32.7% | -3.1% | -23.3% |
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 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 3.13 | 3.13 | 4.06 | 6.17 | 6.95 | 10.26 | 2.32 | 2.02 |
| Debt / EBITDA | 10.23 | 10.23 | 4.77 | 5.10 | 3.70 | 2.25 | 9.20 | — |
| Net Debt / Equity | — | 2.56 | 3.72 | 5.55 | 5.88 | 8.35 | 1.95 | 1.83 |
| Net Debt / EBITDA | 8.37 | 8.37 | 4.37 | 4.59 | 3.14 | 1.83 | 7.72 | — |
| Debt / FCF | — | 7.46 | 10.00 | 18.29 | 8.64 | 3.15 | 3.17 | 26.74 |
| Interest Coverage | 3.97 | 3.97 | 3.57 | 2.48 | 7.95 | 32.23 | -16.67 | -111.38 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.25 | 1.25 | 1.05 | 0.95 | 1.10 | 1.00 | 0.80 | 0.94 |
| Quick Ratio | 0.54 | 0.54 | 0.35 | 0.34 | 0.43 | 0.44 | 0.35 | 0.35 |
| Cash Ratio | 0.34 | 0.34 | 0.17 | 0.17 | 0.27 | 0.29 | 0.22 | 0.17 |
| Asset Turnover | — | 1.31 | 1.37 | 1.34 | 1.35 | 1.56 | 1.28 | 1.42 |
| Inventory Turnover | 3.89 | 3.89 | 4.13 | 4.00 | 3.88 | 4.24 | 5.48 | 6.37 |
| Days Sales Outstanding | — | 10.36 | 9.32 | 8.97 | 8.11 | 8.71 | 8.16 | 7.63 |
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 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.5% | 3.5% | 5.6% | 5.3% | 9.8% | 12.9% | — | — |
| FCF Yield | 5.0% | 6.9% | 8.4% | 6.5% | 7.7% | 13.6% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.3% | 6.1% | 7.1% | 5.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.3% | 6.1% | 7.1% | 5.0% | — | — |
| Shares Outstanding | — | $83M | $81M | $79M | $84M | $90M | $92M | $92M |
High Debt Leverage Sensitivity
According to recent market data, VSCO trades at a forward P/E of 31.12, a valuation that appears disconnected from its historical earnings volatility and suggests investors are pricing in a significant turnaround that has yet to manifest in consistent bottom-line growth across the last ten quarters.
The current EV/EBITDA multiple of 32.70 significantly exceeds that of peers like American Eagle, implying that the market is assigning a premium for the brand's legacy status or potential digital transformation. This valuation warrants caution, as it assumes a level of earnings stability that the company's recent quarterly performance, characterized by wide swings in net margins, has not yet demonstrated.
As reported in financial statements, VSCO's ROIC has struggled to maintain positive momentum, oscillating between a peak of 6.4% and a low of -1.1% over the past ten quarters, indicating that the company is currently failing to consistently generate returns that exceed its likely cost of capital.
The erratic nature of these returns suggests that the company's invested capital is not being deployed with sufficient efficiency to drive sustainable value creation. Investors should monitor whether the recent integration of Adore Me can improve these returns, or if the high fixed-cost base of the physical store fleet will continue to act as a drag on overall capital productivity.
Based on reported figures, VSCO's cash conversion cycle has remained elevated, peaking at 82 days in 2024Q3, which highlights a persistent inability to optimize inventory turnover and supplier payment terms in a retail environment that demands rapid responsiveness to shifting consumer fashion trends.
The high days inventory outstanding (DIO) suggests that the company is frequently forced to hold excess stock, which likely necessitates the promotional discounting observed in gross margin data. This inefficiency ties up critical liquidity and forces a reliance on external financing to bridge the gap between inventory acquisition and final cash collection.
According to recent SEC filings, VSCO's debt-to-equity ratio of 3.37 as of 2026Q1 underscores a highly leveraged capital structure that leaves the firm with minimal room for error during periods of cyclical downturn or unexpected interest rate volatility in the broader credit markets.
The company's interest coverage ratio has shown extreme instability, dropping into negative territory during periods of operating losses, which indicates that debt service is becoming a significant burden on cash flow. This leverage profile suggests that management's ability to pivot the business model is constrained by the necessity of prioritizing debt repayment over growth-oriented capital expenditures.
Data from financial disclosures suggests that the P/E ratio is a fundamentally flawed metric for evaluating VSCO, as it obscures the massive impact of non-recurring restructuring costs and seasonal inventory write-downs that frequently distort the company's reported net income and mask its true underlying earning power.
Investors should instead focus on EV/EBITDA or free cash flow yields to better understand the company's operational performance, as these metrics are less sensitive to the accounting noise inherent in a retail turnaround. Relying on P/E ratios in this context may lead to an overestimation of the company's profitability and a failure to account for the significant debt-related risks embedded in the capital structure.
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Quick answers to the most common questions about buying VSCO stock.
Victoria's Secret & Co.'s current P/E ratio is 40.5x. The historical average is 16.6x. This places it at the 100th percentile of its historical range.
Victoria's Secret & Co.'s current EV/EBITDA is 30.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.3x.
Victoria's Secret & Co.'s return on equity (ROE) is 20.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 31.4%.
Based on historical data, Victoria's Secret & Co. is trading at a P/E of 40.5x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Victoria's Secret & Co. has 36.4% gross margin and 4.5% operating margin.
Victoria's Secret & Co.'s Debt/EBITDA ratio is 10.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.