Latest Ratios: P/E Ratio 27.4x · EV/EBITDA 14.4x · ROE 23.7%. (2012–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $11.4B | $10.8B | $8.5B | $13.6B | $7.0B | $8.7B | $7.4B | $1.9B | $1.5B | $1.5B | $1.2B |
| Enterprise Value | $13.0B | $12.3B | $9.5B | $14.5B | $8.1B | $9.6B | $8.1B | $2.9B | $1.8B | $1.8B | $1.6B |
| P/E Ratio → | 27.40 | 25.21 | 18.86 | 26.70 | 13.85 | 37.72 | 39.92 | — | 19.09 | 23.55 | 37.12 |
| P/S Ratio | 3.74 | 3.53 | 2.93 | 4.73 | 2.29 | 3.13 | 3.73 | 1.12 | 1.07 | 1.10 | 0.97 |
| P/B Ratio | 5.98 | 5.50 | 5.19 | 10.63 | 7.05 | 7.84 | 6.96 | 2.39 | 2.97 | 3.43 | 3.56 |
| P/FCF | 20.06 | 18.90 | 23.05 | 25.48 | 12.97 | 68.86 | 19.81 | 7.88 | 13.71 | 15.29 | 23.01 |
| P/OCF | 13.94 | 13.14 | 14.61 | 18.96 | 9.91 | 31.51 | 16.36 | 6.14 | 9.79 | 10.64 | 11.69 |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.04 | 3.26 | 5.04 | 2.65 | 3.47 | 4.06 | 1.72 | 1.30 | 1.37 | 1.30 |
| EV / EBITDA | 14.40 | 13.67 | 11.27 | 16.33 | 9.42 | 17.34 | 16.43 | 168.36 | 8.92 | 11.16 | 11.03 |
| EV / EBIT | 18.88 | 17.93 | 13.91 | 19.17 | 11.19 | 23.02 | 23.15 | 16.97 | 13.78 | 19.75 | 19.93 |
| EV / FCF | — | 21.63 | 25.71 | 27.12 | 15.05 | 76.32 | 21.57 | 12.05 | 16.58 | 19.09 | 30.99 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 36.3% | 36.3% | 37.7% | 39.9% | 36.4% | 28.9% | 34.8% | 29.7% | 23.6% | 22.7% | 23.5% |
| Operating Margin | 22.5% | 22.5% | 22.6% | 25.5% | 23.4% | 14.9% | 17.4% | -5.7% | 9.3% | 6.6% | 6.1% |
| Net Profit Margin | 14.0% | 14.0% | 15.5% | 17.7% | 16.5% | 9.8% | 11.3% | -11.5% | 5.6% | 4.7% | 2.6% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 23.7% | 23.7% | 30.9% | 44.8% | 48.3% | 25.0% | 24.3% | -30.1% | 16.8% | 16.2% | 10.1% |
| ROA | 10.4% | 10.4% | 12.9% | 16.5% | 18.3% | 10.7% | 9.4% | -11.3% | 7.5% | 5.9% | 3.2% |
| ROIC | 16.8% | 16.8% | 20.7% | 25.7% | 25.9% | 16.4% | 14.8% | -5.5% | 12.1% | 8.5% | 7.7% |
| ROCE | 18.8% | 18.8% | 21.5% | 27.4% | 30.1% | 18.9% | 16.3% | -6.4% | 15.6% | 10.9% | 9.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.91 | 0.91 | 0.88 | 1.07 | 1.35 | 0.87 | 0.80 | 1.49 | 0.64 | 0.89 | 1.25 |
| Debt / EBITDA | 1.97 | 1.97 | 1.72 | 1.54 | 1.55 | 1.73 | 1.74 | 68.52 | 1.59 | 2.33 | 2.88 |
| Net Debt / Equity | — | 0.79 | 0.60 | 0.68 | 1.13 | 0.85 | 0.62 | 1.27 | 0.62 | 0.85 | 1.23 |
| Net Debt / EBITDA | 1.72 | 1.72 | 1.17 | 0.99 | 1.30 | 1.70 | 1.34 | 58.32 | 1.54 | 2.22 | 2.84 |
| Debt / FCF | — | 2.72 | 2.66 | 1.64 | 2.07 | 7.46 | 1.76 | 4.17 | 2.87 | 3.80 | 7.98 |
| Interest Coverage | 7.32 | 7.32 | 7.42 | 8.50 | 10.36 | 12.43 | 9.76 | 2.05 | 6.99 | 6.04 | 4.71 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.42 | 2.42 | 3.33 | 2.96 | 2.69 | 2.23 | 2.33 | 2.80 | 2.26 | 2.07 | 1.72 |
| Quick Ratio | 1.35 | 1.35 | 2.10 | 1.90 | 1.46 | 0.97 | 1.39 | 1.61 | 0.98 | 0.88 | 0.71 |
| Cash Ratio | 0.44 | 0.44 | 1.16 | 1.11 | 0.57 | 0.05 | 0.61 | 0.73 | 0.04 | 0.08 | 0.03 |
| Asset Turnover | — | 0.68 | 0.79 | 0.88 | 1.06 | 1.05 | 0.82 | 0.71 | 1.33 | 1.28 | 1.20 |
| Inventory Turnover | 3.58 | 3.58 | 3.71 | 3.72 | 4.21 | 3.98 | 4.30 | 4.17 | 4.00 | 3.90 | 3.72 |
| Days Sales Outstanding | — | 46.73 | 41.88 | 41.09 | 36.48 | 45.04 | 43.48 | 43.62 | 49.29 | 47.18 | 49.05 |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.5% | 0.5% | 0.6% | 0.3% | 0.6% | 0.4% | 0.4% | 4.9% | 1.8% | 1.3% | 1.4% |
| Payout Ratio | 13.2% | 13.2% | 11.0% | 8.6% | 7.8% | 13.6% | 13.7% | — | 33.6% | 29.8% | 51.0% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.6% | 4.0% | 5.3% | 3.7% | 7.2% | 2.7% | 2.5% | — | 5.2% | 4.2% | 2.7% |
| FCF Yield | 5.0% | 5.3% | 4.3% | 3.9% | 7.7% | 1.5% | 5.0% | 12.7% | 7.3% | 6.5% | 4.3% |
| Buyback Yield | 0.8% | 0.9% | 0.8% | 1.5% | 8.2% | 3.4% | 0.0% | 0.0% | 0.0% | 0.5% | 0.0% |
| Total Shareholder Yield | 1.3% | 1.4% | 1.4% | 1.8% | 8.8% | 3.8% | 0.4% | 4.9% | 1.8% | 1.8% | 1.4% |
| Shares Outstanding | — | $78M | $78M | $79M | $83M | $73M | $72M | $64M | $58M | $56M | $56M |
Cyclical construction demand volatility
According to current market data, WMS trades at a forward P/E of 25.42, which appears to command a significant premium over peers like FBIN, suggesting investors are pricing in a high-growth trajectory for its specialized water management solutions rather than standard industrial construction multiples.
The current valuation implies that the market views the company as a technology-enabled infrastructure play rather than a commodity pipe manufacturer. While the PEG ratio of 1.77 suggests the stock is not cheap relative to near-term growth, this premium may be justified if the company successfully executes its 'spec-in' strategy for high-margin Allied products.
Based on reported financial statements, ROIC has trended downward from 7.8% in 2025Q1 to 3.2% in 2026Q4, indicating that the company's ability to generate returns on its expanding asset base is currently being challenged by both operational headwinds and significant capital deployment into new infrastructure.
The decline in ROIC warrants further investigation into whether the recent surge in goodwill and PPE is failing to yield the expected incremental returns. Investors should monitor if this decay is a temporary byproduct of aggressive expansion or a structural shift in the company's ability to maintain its competitive moat.
As reported in recent quarterly filings, the cash conversion cycle has fluctuated significantly, reaching 98 days in 2026Q4 compared to 80 days in 2026Q2, which highlights the company's sensitivity to inventory management and the timing of receivables in a cooling construction environment.
The increase in the cash conversion cycle suggests that the company is carrying higher inventory levels relative to sales, which may indicate a buildup of stock in anticipation of demand that has yet to materialize. This inefficiency ties up liquidity and may necessitate more disciplined working capital management to stabilize cash flows.
Based on the provided financial figures, the debt-to-EBITDA ratio has risen to 9.38 in 2026Q4 from a low of 5.13 in 2025Q1, indicating that while the company maintains a healthy balance sheet, its leverage profile is becoming increasingly sensitive to fluctuations in operating earnings.
The interest coverage ratio of 5.14 in 2026Q4 remains adequate, but the downward trend from previous periods suggests that the margin of safety for debt service is narrowing. Management's ability to deleverage will likely depend on their success in integrating recent acquisitions and maintaining pricing power in the face of cyclical demand.
Market participants frequently misapply standard construction-sector P/E multiples to WMS, which obscures the company's unique 'spec-in' moat and its structural cost advantage derived from vertical integration into plastic recycling, as reported in recent institutional research and company disclosures.
By treating the company as a simple cyclical construction proxy, the market fails to account for the stickiness of the Allied Products segment, which embeds the company into long-term infrastructure specifications. Analysts should instead focus on 'material conversion' rates and resin-spread stability as more accurate indicators of long-term value creation.
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Quick answers to the most common questions about buying WMS stock.
Advanced Drainage Systems, Inc.'s current P/E ratio is 27.4x. The historical average is 33.0x. This places it at the 55th percentile of its historical range.
Advanced Drainage Systems, Inc.'s current EV/EBITDA is 14.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.6x.
Advanced Drainage Systems, Inc.'s return on equity (ROE) is 23.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 16.8%.
Based on historical data, Advanced Drainage Systems, Inc. is trading at a P/E of 27.4x. This is at the 55th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Advanced Drainage Systems, Inc.'s current dividend yield is 0.48% with a payout ratio of 13.2%.
Advanced Drainage Systems, Inc. has 36.3% gross margin and 22.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Advanced Drainage Systems, Inc.'s Debt/EBITDA ratio is 2.0x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.