Latest Ratios: P/E Ratio 30.8x · EV/EBITDA 16.2x · ROE 8.5%. (2009–2025 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 | $28.7B | $33.2B | $28.3B | $25.0B | $20.0B | $21.8B | $18.4B | $14.3B | $12.1B | $12.3B | $8.9B |
| Enterprise Value | $29.1B | $33.7B | $29.3B | $26.3B | $21.0B | $22.9B | $19.7B | $15.9B | $14.1B | $14.1B | $11.0B |
| P/E Ratio → | 30.78 | 34.74 | 31.79 | 40.99 | 56.41 | 51.03 | 72.71 | 35.65 | 22.02 | 37.27 | 34.15 |
| P/S Ratio | 3.17 | 3.68 | 3.30 | 3.39 | 3.62 | 4.19 | 3.78 | 2.72 | 2.32 | 2.62 | 2.36 |
| P/B Ratio | 2.51 | 2.83 | 2.60 | 2.45 | 5.71 | 6.75 | 6.19 | 4.81 | 4.34 | 4.90 | 4.04 |
| P/FCF | 31.51 | 36.51 | 29.99 | 44.08 | 51.57 | 65.97 | 28.76 | 23.29 | 34.62 | 23.91 | 23.90 |
| P/OCF | 23.11 | 26.78 | 22.37 | 29.81 | 33.58 | 40.46 | 22.37 | 17.02 | 20.62 | 17.98 | 17.93 |
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 | — | 3.73 | 3.42 | 3.57 | 3.81 | 4.41 | 4.04 | 3.03 | 2.71 | 3.00 | 2.91 |
| EV / EBITDA | 16.21 | 18.74 | 18.62 | 24.19 | 24.49 | 27.62 | 31.89 | 21.44 | 15.40 | 17.97 | 19.70 |
| EV / EBIT | 23.83 | 27.84 | 25.87 | 38.48 | 42.89 | 39.06 | 54.44 | 32.98 | 20.52 | 24.35 | 22.58 |
| EV / FCF | — | 37.02 | 31.06 | 46.51 | 54.16 | 69.48 | 30.74 | 25.99 | 40.39 | 27.37 | 29.42 |
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 | 38.5% | 38.5% | 37.5% | 36.9% | 37.7% | 38.0% | 37.5% | 39.0% | 38.9% | 39.3% | 38.7% |
| Operating Margin | 13.5% | 13.5% | 11.8% | 8.9% | 11.3% | 11.3% | 7.5% | 9.3% | 12.6% | 11.7% | 10.8% |
| Net Profit Margin | 10.6% | 10.6% | 10.4% | 8.3% | 6.4% | 8.2% | 5.2% | 7.6% | 10.5% | 7.0% | 6.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.5% | 8.5% | 8.5% | 8.9% | 10.6% | 13.8% | 8.5% | 14.0% | 20.7% | 14.0% | 12.1% |
| ROA | 5.6% | 5.6% | 5.5% | 5.1% | 4.4% | 5.0% | 3.1% | 5.4% | 7.8% | 5.0% | 4.7% |
| ROIC | 7.6% | 7.6% | 6.5% | 6.1% | 10.5% | 10.2% | 6.2% | 7.7% | 10.8% | 9.7% | 8.8% |
| ROCE | 8.5% | 8.5% | 7.2% | 6.4% | 9.4% | 8.6% | 5.6% | 8.1% | 11.3% | 10.0% | 9.0% |
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 | 0.17 | 0.17 | 0.20 | 0.23 | 0.56 | 0.78 | 1.06 | 0.80 | 0.83 | 0.87 | 1.07 |
| Debt / EBITDA | 1.08 | 1.08 | 1.35 | 2.20 | 2.27 | 3.02 | 5.09 | 3.20 | 2.52 | 2.80 | 4.25 |
| Net Debt / Equity | — | 0.04 | 0.09 | 0.13 | 0.29 | 0.36 | 0.43 | 0.56 | 0.72 | 0.71 | 0.93 |
| Net Debt / EBITDA | 0.26 | 0.26 | 0.64 | 1.26 | 1.17 | 1.40 | 2.06 | 2.22 | 2.20 | 2.27 | 3.70 |
| Debt / FCF | — | 0.51 | 1.07 | 2.42 | 2.59 | 3.52 | 1.98 | 2.70 | 5.77 | 3.46 | 5.52 |
| Interest Coverage | 41.72 | 41.72 | 25.70 | 13.96 | 9.80 | 7.72 | 4.70 | 7.21 | 8.38 | 7.07 | 6.94 |
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 | 1.63 | 1.63 | 1.75 | 1.76 | 1.89 | 2.27 | 1.80 | 1.63 | 1.51 | 1.88 | 1.49 |
| Quick Ratio | 1.28 | 1.28 | 1.33 | 1.30 | 1.39 | 1.77 | 1.52 | 1.27 | 1.08 | 1.41 | 1.06 |
| Cash Ratio | 0.52 | 0.52 | 0.48 | 0.46 | 0.59 | 0.97 | 0.96 | 0.48 | 0.21 | 0.38 | 0.25 |
| Asset Turnover | — | 0.51 | 0.52 | 0.46 | 0.69 | 0.63 | 0.56 | 0.68 | 0.72 | 0.69 | 0.58 |
| Inventory Turnover | 5.66 | 5.66 | 5.37 | 4.56 | 4.30 | 4.60 | 5.46 | 5.94 | 5.35 | 5.45 | 4.43 |
| Days Sales Outstanding | — | 71.06 | 71.11 | 80.15 | 72.44 | 66.96 | 69.09 | 72.04 | 72.27 | 74.13 | 81.60 |
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 | 1.3% | 1.2% | 1.2% | 1.2% | 1.1% | 0.9% | 1.0% | 1.2% | 1.3% | 1.1% | 1.3% |
| Payout Ratio | 40.9% | 40.9% | 39.3% | 49.1% | 61.1% | 47.5% | 74.0% | 43.4% | 27.7% | 39.3% | 43.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.2% | 2.9% | 3.1% | 2.4% | 1.8% | 2.0% | 1.4% | 2.8% | 4.5% | 2.7% | 2.9% |
| FCF Yield | 3.2% | 2.7% | 3.3% | 2.3% | 1.9% | 1.5% | 3.5% | 4.3% | 2.9% | 4.2% | 4.2% |
| Buyback Yield | 0.1% | 0.0% | 0.1% | 0.1% | 0.3% | 0.3% | 0.3% | 0.3% | 0.5% | 0.2% | 0.0% |
| Total Shareholder Yield | 1.4% | 1.2% | 1.3% | 1.3% | 1.3% | 1.2% | 1.4% | 1.5% | 1.7% | 1.3% | 1.3% |
| Shares Outstanding | — | $244M | $244M | $218M | $181M | $182M | $181M | $181M | $181M | $181M | $180M |
Municipal budget cycle sensitivity
According to current market data, Xylem trades at a forward P/E of 21.04, which suggests investors are pricing in a premium for its digital water platform compared to traditional industrial machinery peers like Pentair, despite the company's ongoing integration of large-scale acquisitions and moderate organic growth rates.
The valuation multiple appears to reflect a market expectation that Xylem will successfully transition into a high-margin, recurring-revenue software provider. Investors should monitor whether this premium is justified by sustained margin expansion, as the current PEG ratio of 1.30 indicates that the market is already baking in significant future earnings growth.
Based on reported figures, Xylem's ROIC has remained suppressed in the 1.4% to 2.2% range over the last ten quarters, indicating that the company is currently struggling to generate returns on invested capital that exceed its cost of capital following its aggressive acquisition strategy.
The low ROIC suggests that the substantial goodwill and intangible assets added to the balance sheet are not yet contributing to meaningful economic value creation. This trend warrants further investigation into whether the company can improve its capital efficiency as the integration of Evoqua matures and synergies begin to materialize.
As reported in financial statements, Xylem's cash conversion cycle has fluctuated between 70 and 84 days over the past ten quarters, reflecting a persistent challenge in managing project-based receivables and inventory levels inherent in its municipal-focused business model compared to more streamlined industrial peers.
The variability in the CCC suggests that the company's cash flow generation is highly sensitive to the timing of large-scale utility rollouts and project milestones. This inefficiency appears to be a structural byproduct of the long-cycle nature of municipal infrastructure contracts, which often leads to lumpy revenue recognition and delayed cash collection.
According to recent regulatory filings, Xylem maintains a debt-to-equity ratio of 0.17, which provides a fortress-like balance sheet that allows the company to navigate municipal budget cycles and fund ongoing R&D investments without the immediate pressure of significant debt service obligations or restrictive financial covenants.
This low leverage profile appears to be a deliberate capital allocation choice, providing the company with the dry powder necessary for future bolt-on acquisitions. However, investors should monitor whether this conservative stance is maintained if the company faces further integration costs or a prolonged slowdown in municipal infrastructure spending.
The most commonly misapplied metric for Xylem is the P/E ratio, which obscures the company's true economic performance by failing to account for the significant non-cash amortization charges resulting from its recent large-scale acquisitions of Sensus and Evoqua, thereby artificially depressing reported GAAP earnings.
Analysts should instead prioritize Adjusted EBITDA or Free Cash Flow to better assess the company's underlying earning power and cash-generating capacity. Relying solely on P/E may lead to an incorrect assessment of the company's valuation, as it ignores the structural shift toward recurring service revenue that is currently masked by acquisition-related accounting noise.
Includes 30+ ratios · 17 years · Updated daily
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Quick answers to the most common questions about buying XYL stock.
Xylem Inc.'s current P/E ratio is 30.8x. The historical average is 34.6x. This places it at the 40th percentile of its historical range.
Xylem Inc.'s current EV/EBITDA is 16.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.6x.
Xylem Inc.'s return on equity (ROE) is 8.5%. The historical average is 12.9%.
Based on historical data, Xylem Inc. is trading at a P/E of 30.8x. This is at the 40th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Xylem Inc.'s current dividend yield is 1.33% with a payout ratio of 40.9%.
Xylem Inc. has 38.5% gross margin and 13.5% operating margin. Operating margin between 10-20% is typical for established companies.
Xylem Inc.'s Debt/EBITDA ratio is 1.1x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.