Latest Ratios: P/E Ratio -9.1x · EV/EBITDA N/A · ROE -4.6%. (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 | $258M | $262M | $324M | $560M | $784M | $2.6B | — | — |
| Enterprise Value | $-227003541 | $-3037910596 | $-3656400472 | $-1501092753 | $-3645430966 | $515M | — | — |
| P/E Ratio → | -9.10 | — | — | — | — | — | — | — |
| P/S Ratio | 0.66 | 0.10 | 0.09 | 0.13 | 0.21 | 0.90 | — | — |
| P/B Ratio | 0.45 | 0.07 | 0.08 | 0.12 | 0.14 | 0.39 | — | — |
| P/FCF | — | — | — | — | — | — | — | — |
| P/OCF | — | — | — | — | — | — | — | — |
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 | — | -1.14 | -1.00 | -0.36 | -0.99 | 0.18 | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — |
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 | 59.9% | 59.9% | 60.6% | 54.7% | 50.2% | 52.5% | 56.0% | 46.6% |
| Operating Margin | -13.9% | -13.9% | -13.4% | -25.5% | -44.5% | -47.0% | -44.6% | -157.9% |
| Net Profit Margin | -7.0% | -7.0% | -4.8% | -20.1% | -43.9% | -43.9% | -38.3% | -149.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | -4.6% | -4.6% | -3.9% | -16.2% | -25.9% | -27.0% | -17.8% | — |
| ROA | -3.4% | -3.4% | -2.8% | -11.7% | -19.5% | -20.4% | -12.6% | -25.1% |
| ROIC | -70.1% | -70.1% | -25.6% | -41.2% | -41.0% | -31.7% | -23.9% | — |
| ROCE | -9.1% | -9.1% | -10.8% | -20.1% | -25.6% | -28.4% | -19.1% | -32.8% |
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 | 0.02 | 0.02 | 0.00 | 0.01 | 0.02 | 0.02 | 0.00 | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.85 | -0.95 | -0.44 | -0.78 | -0.31 | -0.35 | — |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — |
| Debt / FCF | — | — | — | — | — | — | — | — |
| Interest Coverage | — | — | — | — | — | — | — | — |
Net cash position: cash ($3.4B) exceeds total debt ($72M)
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 | 3.73 | 3.73 | 3.60 | 3.28 | 4.01 | 4.39 | 3.67 | 5.11 |
| Quick Ratio | 3.73 | 3.73 | 3.60 | 3.27 | 4.01 | 4.39 | 3.67 | 5.08 |
| Cash Ratio | 3.34 | 3.34 | 3.19 | 2.81 | 3.43 | 3.80 | 3.05 | 4.64 |
| Asset Turnover | — | 0.51 | 0.64 | 0.62 | 0.48 | 0.33 | 0.34 | 0.17 |
| Inventory Turnover | — | — | — | 85.77 | 176.71 | 301.37 | — | 13.16 |
| Days Sales Outstanding | — | 56.26 | 49.62 | 59.37 | 85.48 | 123.58 | 142.73 | 137.48 |
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 | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — |
| Buyback Yield | 21.0% | 100.0% | 100.0% | 66.0% | 16.3% | 0.0% | — | — |
| Total Shareholder Yield | 21.0% | 100.0% | 100.0% | 66.0% | 16.3% | 0.0% | — | — |
| Shares Outstanding | — | $80M | $91M | $100M | $100M | $79M | $92M | $99M |
Persistent Operating Cash Burn
As reported in recent financial filings, Zhihu trades at a price-to-book ratio of 0.43, suggesting that the market is valuing the enterprise at a significant discount to its $3.37 billion cash position, effectively pricing the core operating business at a negative enterprise value.
This valuation disconnect implies that investors are heavily discounting the company's ability to generate future returns, viewing the cash pile as a wasting asset rather than a strategic war chest. The negative P/E of -8.71 further underscores that the market is currently prioritizing capital preservation over growth-oriented earnings multiples.
Based on the company's reported figures, ROIC has trended into negative territory, reaching -9.6% in 2025Q4, which indicates that the firm is currently destroying shareholder value rather than compounding it through its investments in content moderation and vocational training infrastructure.
The persistent negative ROIC suggests that the company's high fixed-cost base is not being adequately offset by its current monetization scale. Investors should monitor whether management can improve asset utilization, as the current trend indicates a failure to achieve the necessary returns to justify the capital deployed into the platform.
According to quarterly data, Zhihu's asset turnover has remained stagnant at 0.12, reflecting a persistent inability to generate meaningful revenue from its existing asset base compared to historical levels and broader industry benchmarks for content-driven platforms.
The high days payable outstanding, which exceeded 200 days in recent periods, suggests that the company may be relying on extended supplier payment terms to manage its liquidity. This reliance on working capital to bridge operational gaps warrants further investigation into the sustainability of its current vendor relationships.
As reported in financial statements, Zhihu maintains a current ratio of 3.73, which provides a substantial liquidity cushion, yet this metric is heavily influenced by the company's large cash reserves rather than an underlying improvement in operational cash generation or inventory turnover.
While the liquidity position appears robust on the surface, the lack of positive free cash flow suggests that the company is effectively consuming its balance sheet to fund ongoing operations. This structural reliance on cash reserves rather than organic cash flow makes the company vulnerable to prolonged periods of market volatility.
Based on an analysis of the business model, the price-to-sales ratio is a frequently misapplied metric for Zhihu, as it obscures the company's significant operating losses and the high proportion of revenue that is currently being offset by share-based compensation and marketing expenses.
Investors should instead focus on the cash-burn-to-market-cap ratio or adjusted EBITDA, as these metrics better reflect the company's true operational sustainability. Relying on P/S ignores the reality that top-line growth is currently being achieved at the expense of significant cash depletion, which is not captured by revenue-based valuation.
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Quick answers to the most common questions about buying ZH stock.
Zhihu Inc.'s current P/E ratio is -9.1x. This places it at the 50th percentile of its historical range.
Zhihu Inc.'s return on equity (ROE) is -4.6%. The historical average is -15.9%.
Based on historical data, Zhihu Inc. is trading at a P/E of -9.1x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Zhihu Inc. has 59.9% gross margin and -13.9% operating margin.