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WWayfair Inc.
$93.25$12.3B
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  4. Financial Ratios

Wayfair Inc. (W) Financial Ratios

Latest Ratios: P/E Ratio -38.5x · EV/EBITDA 46.2x · ROE N/A. (2012–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

W 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$12.3B$13.1B$5.5B$7.0B$3.5B$19.8B$22.4B$8.3B$8.1B$7.0B$3.0B
Enterprise Value$14.9B$15.7B$8.4B$9.9B$6.6B$22.1B$23.9B$10.1B$8.2B$6.9B$2.8B
P/E Ratio →-38.53—————121.40————
P/S Ratio0.991.050.460.590.291.441.590.911.191.480.88
P/B Ratio——————————37.52
P/FCF26.4528.2165.68——151.9820.73————
P/OCF22.9824.5117.2020.15—48.1915.83—94.97207.5947.42

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

W 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—1.260.710.830.541.611.691.111.211.460.82
EV / EBITDA46.1648.69———96.9537.04————
EV / EBIT874.42—————68.03————
EV / FCF—33.79100.68——170.0422.11————

W 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 Margin30.2%30.2%30.2%30.6%28.0%28.4%29.1%23.5%23.4%23.7%23.9%
Operating Margin0.1%0.1%-3.9%-6.8%-11.3%-0.7%2.5%-10.2%-7.0%-5.0%-5.8%
Net Profit Margin-2.5%-2.5%-4.2%-6.1%-10.9%-1.0%1.3%-10.8%-7.4%-5.2%-5.8%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE—————————-1575.4%-120.8%
ROA-9.1%-9.1%-14.2%-20.9%-32.7%-2.9%4.9%-40.7%-32.5%-24.8%-26.7%
ROIC——-212.8%-167.1%-161.7%-13.6%47.1%-216.3%———
ROCE1.4%1.4%-38.7%-58.1%-71.7%-4.0%19.2%-88.9%-77.3%-69.4%-78.2%

W Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity——————————0.87
Debt / EBITDA12.6312.63———17.785.61————
Net Debt / Equity——————————-2.66
Net Debt / EBITDA8.058.05———10.302.32————
Debt / FCF—5.5935.00——18.061.38————
Interest Coverage-2.69-2.69-15.62-41.88-47.85-3.062.41-16.85-16.58-24.88—

W Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio0.940.940.790.850.931.361.410.851.101.100.86
Quick Ratio0.910.910.760.820.891.331.380.821.061.070.82
Cash Ratio0.720.720.580.620.621.081.200.610.850.840.63
Asset Turnover—3.623.433.463.413.003.103.093.593.894.44
Inventory Turnover122.42122.42108.91111.1597.80142.22192.94113.14112.48128.45138.68
Days Sales Outstanding—3.878.937.1210.197.884.445.925.396.255.85

W 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———————————
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield——————0.8%————
FCF Yield3.8%3.5%1.5%——0.7%4.8%————
Buyback Yield0.0%0.0%0.0%0.0%2.2%1.5%1.7%0.0%0.0%0.0%0.0%
Total Shareholder Yield0.0%0.0%0.0%0.0%2.2%1.5%1.7%0.0%0.0%0.0%0.0%
Shares Outstanding—$130M$123M$114M$106M$104M$99M$92M$89M$87M$85M

Key Metrics

Growth RegimeMixed
ProfitabilityStrained
Balance SheetVulnerable
Cash FlowMixed
Top Statement Risk

High customer acquisition costs

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Valuation Disconnected From Earnings Reality

According to current market data, Wayfair trades at a forward P/E of 34.63, a multiple that appears difficult to justify given the company's historical inability to maintain consistent GAAP profitability and its reliance on non-cash adjustments to support its valuation relative to more established retail peers.

The company's valuation multiples, including an EV/EBITDA of 46.66, suggest that investors are pricing in a significant recovery in margins that has yet to materialize in the reported financials. This premium valuation appears to rely on the assumption of future scale efficiencies that may be undermined by the persistent need for high marketing spend to sustain top-line growth.

Operating Margins Hover Near Break-Even

As reported in recent financial statements, Wayfair's operating margin of 0.14% highlights a precarious profitability profile where the company struggles to convert its 30.22% gross margin into meaningful bottom-line results after accounting for the heavy variable costs associated with its logistics and advertising-heavy business model.

The thin operating margin suggests that the company lacks the pricing power to offset fluctuations in shipping and customer acquisition costs. Investors should monitor whether the recent pivot toward operational efficiency can actually expand these margins or if they will remain structurally constrained by the competitive nature of the online furniture market.

Working Capital Efficiency Remains Volatile

Based on the provided figures, Wayfair's cash conversion cycle remains deeply negative, with a CCC of -43 days in 2026Q1, which indicates that the company effectively utilizes supplier credit to finance its operations rather than relying on its own internal cash reserves to manage inventory and logistics.

While a negative CCC is often a sign of strength in retail, here it appears to be a function of the drop-ship model where the company collects payment from customers before paying suppliers. This reliance on supplier leverage warrants caution, as any disruption in vendor relationships could force a rapid and painful shift in the company's liquidity position.

Debt Service Burden Constrains Flexibility

According to recent SEC filings, Wayfair's interest coverage ratio has shown extreme volatility, swinging from -84.50 in 2023Q4 to 0.33 in 2026Q1, reflecting a capital structure that is highly sensitive to interest rate environments and the company's inconsistent ability to generate sufficient operating income to cover debt obligations.

The high debt-to-EBITDA ratio of 45.44 suggests that the company's leverage is becoming increasingly difficult to manage, especially given the lack of positive equity. This situation may force management to prioritize debt servicing over necessary capital investments, potentially limiting the long-term competitiveness of the CastleGate logistics network.

Misapplication of Retail Revenue Multiples

The most commonly misapplied metric for Wayfair is the Price-to-Sales ratio, which obscures the company's underlying cash burn and the high cost of customer acquisition required to generate that revenue, leading to an overestimation of the business's intrinsic value compared to more capital-efficient retail models.

Investors should instead focus on Free Cash Flow yield and the LTM Net Revenue per Active Customer to better gauge the sustainability of the business model. Relying on P/S ignores the fact that a significant portion of revenue is effectively passed through to suppliers and logistics partners, leaving very little margin for error.

Download Financial Ratios Data

Includes 30+ ratios · 14 years · Updated daily

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W — Frequently Asked Questions

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

What is Wayfair Inc.'s P/E ratio?

Wayfair Inc.'s current P/E ratio is -38.5x. The historical average is 121.4x.

What is Wayfair Inc.'s EV/EBITDA?

Wayfair Inc.'s current EV/EBITDA is 46.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 60.9x.

Is W stock overvalued?

Based on historical data, Wayfair Inc. is trading at a P/E of -38.5x. Compare with industry peers and growth rates for a complete picture.

What are Wayfair Inc.'s profit margins?

Wayfair Inc. has 30.2% gross margin and 0.1% operating margin.

How much debt does Wayfair Inc. have?

Wayfair Inc.'s Debt/EBITDA ratio is 12.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.