Latest Ratios: P/E Ratio -45.5x · EV/EBITDA 15.7x · ROE -4.5%. (2021–2025 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 |
|---|---|---|---|---|---|---|
| Market Cap | $1.9B | $665M | $2.0B | $2.5B | — | — |
| Enterprise Value | $3.3B | $2.1B | $3.3B | $4.2B | — | — |
| P/E Ratio → | -45.52 | — | 93.13 | 11.84 | — | — |
| P/S Ratio | 0.68 | 0.24 | 0.70 | 0.89 | — | — |
| P/B Ratio | 2.15 | 0.77 | 2.17 | 2.88 | — | — |
| P/FCF | 323.11 | 115.33 | 5.00 | 14.09 | — | — |
| P/OCF | 29.02 | 10.36 | 4.16 | 9.82 | — | — |
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 |
|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.75 | 1.18 | 1.48 | — | — |
| EV / EBITDA | 15.68 | 9.90 | 11.09 | 11.78 | — | — |
| EV / EBIT | 50.49 | 42.83 | 20.89 | 15.36 | — | — |
| EV / FCF | — | 356.09 | 8.43 | 23.31 | — | — |
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 |
|---|---|---|---|---|---|---|
| Gross Margin | 26.5% | 26.5% | 29.1% | 30.3% | 28.9% | 28.1% |
| Operating Margin | 2.4% | 2.4% | 5.6% | 7.7% | 7.2% | 3.9% |
| Net Profit Margin | -1.5% | -1.5% | 0.7% | 7.5% | 5.3% | 3.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| ROE | -4.5% | -4.5% | 2.4% | 13.3% | 6.1% | 3.2% |
| ROA | -1.4% | -1.4% | 0.7% | 6.8% | 4.5% | 2.4% |
| ROIC | 2.1% | 2.1% | 5.0% | 6.5% | 5.8% | 2.9% |
| ROCE | 2.6% | 2.6% | 6.0% | 7.9% | 7.0% | 3.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Debt / Equity | 1.64 | 1.64 | 1.53 | 1.92 | 0.08 | 0.08 |
| Debt / EBITDA | 6.84 | 6.84 | 4.62 | 4.76 | 0.56 | 0.79 |
| Net Debt / Equity | — | 1.60 | 1.49 | 1.88 | 0.07 | 0.06 |
| Net Debt / EBITDA | 6.70 | 6.70 | 4.52 | 4.66 | 0.49 | 0.61 |
| Debt / FCF | — | 240.76 | 3.43 | 9.22 | 1.01 | 0.91 |
| Interest Coverage | 0.52 | 0.52 | 1.25 | 27183.90 | 85.16 | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Current Ratio | 2.08 | 2.08 | 1.73 | 2.58 | 2.45 | 2.43 |
| Quick Ratio | 1.64 | 1.64 | 0.50 | 1.13 | 1.02 | 0.98 |
| Cash Ratio | 0.07 | 0.07 | 0.07 | 0.09 | 0.06 | 0.11 |
| Asset Turnover | — | 0.94 | 0.96 | 0.89 | 0.86 | 0.79 |
| Inventory Turnover | 11.23 | 11.23 | 3.55 | 3.43 | 3.31 | 3.17 |
| Days Sales Outstanding | — | 21.66 | 23.06 | 50.76 | 50.09 | 47.14 |
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 |
|---|---|---|---|---|---|---|
| Dividend Yield | 0.7% | 2.1% | 1.0% | 66.9% | — | — |
| Payout Ratio | — | — | 94.7% | 792.3% | 94.9% | 128.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 1.1% | 8.4% | — | — |
| FCF Yield | 0.3% | 0.9% | 20.0% | 7.1% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.7% | 2.1% | 1.0% | 66.9% | — | — |
| Shares Outstanding | — | $132M | $132M | $131M | $130M | $131M |
Route density and margin erosion
Based on current market data, VSTS trades at a forward P/E of 29.65, which appears to price in a significant recovery that remains unsupported by the company's recent -2.53% revenue contraction and the persistent volatility in its quarterly earnings profile reported in recent filings.
The valuation discount relative to industry leaders like Cintas suggests that investors are skeptical of the company's ability to achieve sustainable margin expansion as a standalone entity. The high P/FCF multiple of 330.21 further indicates that the market is currently valuing the company on potential future cash flow normalization rather than its current, highly constrained earnings power.
As reported in financial statements, VSTS has struggled to generate meaningful returns, with ROIC hovering near 1.3% in 2026Q2, a figure that remains well below the cost of capital and highlights the structural difficulty in compounding value within its current industrial laundry service model.
The low ROIC is primarily driven by the company's inability to leverage its asset base effectively, as evidenced by stagnant asset turnover ratios. Investors should monitor whether management can optimize the existing route network to improve capital efficiency, as current returns appear insufficient to justify the heavy maintenance capital expenditure required by the business.
According to quarterly data, the cash conversion cycle has fluctuated wildly, reaching 102 days in 2025Q4 before tightening to 25 days in 2026Q2, which suggests significant instability in inventory management and receivables collection processes following the company's separation from its former parent.
The dramatic swings in the CCC indicate that VSTS has yet to establish a predictable operational rhythm, which is critical for a route-based business model. The inconsistency in DIO and DSO suggests that the company may be struggling to align its inventory levels with actual service demand, potentially leading to unnecessary capital tie-ups.
Based on reported figures, the debt-to-equity ratio dropped sharply from 1.63 in 2026Q1 to 0.30 in 2026Q2, a rapid shift that warrants further investigation into whether this was driven by organic debt retirement or accounting adjustments related to the company's post-spin capital structure.
While the reduction in leverage appears positive on the surface, the low interest coverage ratio of 1.32 in 2026Q2 suggests that the company remains vulnerable to interest rate fluctuations and operational downturns. The sustainability of this lower debt profile remains a key question for investors assessing the company's long-term financial health.
The P/E ratio is frequently misapplied to VSTS, as the company's recent transition to a standalone entity has resulted in non-recurring costs and accounting noise that render trailing earnings metrics largely unrepresentative of the underlying business's true, normalized earning potential.
Investors should instead focus on EV/EBITDA or FCF-based valuation metrics to better capture the cash-generating capacity of the laundry infrastructure. Relying on P/E ratios in this context risks misinterpreting the company's current profitability, which is heavily distorted by the overhead burden of its new corporate structure.
Includes 30+ ratios · 5 years · Updated daily
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Quick answers to the most common questions about buying VSTS stock.
Vestis Corporation's current P/E ratio is -45.5x. The historical average is 52.5x.
Vestis Corporation's current EV/EBITDA is 15.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.9x.
Vestis Corporation's return on equity (ROE) is -4.5%. The historical average is 4.1%.
Based on historical data, Vestis Corporation is trading at a P/E of -45.5x. Compare with industry peers and growth rates for a complete picture.
Vestis Corporation's current dividend yield is 0.74%.
Vestis Corporation has 26.5% gross margin and 2.4% operating margin.
Vestis Corporation's Debt/EBITDA ratio is 6.8x, indicating high leverage. A ratio above 4x may signal elevated financial risk.