Latest Ratios: P/E Ratio -12.1x · EV/EBITDA N/A · ROE -22.6%. (2015–2025 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 | $2.1B | $1.9B | $2.6B | $264M | $294M | $584M | $1.1B | $268M | $122M | $46M | — |
| Enterprise Value | $1.7B | $1.5B | $2.3B | $-510884492 | $-693950400 | $-364104589 | $628M | $214M | $63M | $-183479060 | — |
| P/E Ratio → | -12.09 | — | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 4.65 | 4.20 | 6.50 | 0.99 | 1.37 | 4.05 | 21.47 | 20.62 | 943.67 | — | — |
| P/B Ratio | 2.96 | 2.70 | 3.08 | 0.33 | 0.28 | 0.42 | 0.90 | 0.91 | 0.49 | 0.20 | — |
| 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 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.21 | 5.75 | -1.92 | -3.23 | -2.52 | 12.82 | 16.45 | 485.52 | — | — |
| 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 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 58.5% | 58.5% | 62.9% | 64.1% | 65.6% | 63.8% | -389.1% | 71.1% | 66.3% | — | — |
| Operating Margin | -48.6% | -48.6% | -70.7% | -137.4% | -188.0% | -485.1% | -616.4% | -1564.9% | -109514.0% | — | — |
| Net Profit Margin | -38.1% | -38.1% | -64.4% | -125.5% | -206.1% | -488.2% | -549.3% | -1502.3% | -107433.6% | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -22.6% | -22.6% | -31.4% | -36.3% | -36.6% | -55.3% | -36.7% | -71.5% | -57.2% | -54.9% | — |
| ROA | -14.9% | -14.9% | -23.1% | -29.7% | -31.3% | -48.5% | -32.5% | -59.4% | -50.4% | -29.8% | -72.9% |
| ROIC | -41.7% | -41.7% | -74.8% | -699.2% | -124.1% | -89.2% | -45.9% | -70.5% | -107.8% | -699.4% | — |
| ROCE | -27.2% | -27.2% | -32.8% | -38.3% | -32.4% | -53.5% | -40.0% | -72.4% | -57.8% | -32.0% | -82.2% |
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 | 0.31 | 0.31 | 0.18 | 0.02 | 0.02 | 0.01 | 0.02 | 0.07 | 0.01 | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.64 | -0.35 | -0.97 | -0.94 | -0.69 | -0.36 | -0.18 | -0.24 | -0.98 | — |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | -33.26 | -33.26 | -113.07 | — | — | — | -1667.41 | -662.20 | -3489.82 | — | — |
Net cash position: cash ($680M) exceeds total debt ($224M)
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 | 2.45 | 2.45 | 3.51 | 4.63 | 8.04 | 7.78 | 12.40 | 6.27 | 5.51 | 19.11 | 16.25 |
| Quick Ratio | 2.27 | 2.27 | 3.38 | 4.41 | 7.81 | 7.68 | 12.27 | 6.14 | 5.51 | 19.11 | 16.25 |
| Cash Ratio | 1.66 | 1.66 | 2.60 | 3.97 | 7.21 | 7.30 | 12.10 | 5.92 | 5.39 | 19.03 | 16.23 |
| Asset Turnover | — | 0.39 | 0.34 | 0.26 | 0.18 | 0.09 | 0.04 | 0.04 | 0.00 | — | — |
| Inventory Turnover | 2.56 | 2.56 | 3.71 | 2.14 | 2.34 | 2.76 | 18.22 | 0.62 | 11.41 | — | — |
| Days Sales Outstanding | — | 84.17 | 81.79 | 89.41 | 82.44 | 138.63 | 38.51 | 106.56 | 253.76 | — | — |
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 | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — |
| Shares Outstanding | — | $110M | $99M | $10M | $10M | $9M | $8M | $6M | $5M | $2M | $943902 |
Persistent Capital Market Dependency
According to current market data, ZLAB trades at a price-to-sales multiple of 4.33, which appears to discount the company's historical growth trajectory while simultaneously pricing in the significant regulatory and geopolitical risks inherent in its China-centric, license-dependent business model relative to broader biotechnology sector benchmarks.
The current P/S multiple suggests that investors are cautious about the company's ability to scale revenue without incurring prohibitive royalty costs. This valuation level warrants further investigation into whether the market is correctly pricing the transition from oncology-focused revenue to newer, less-proven autoimmune therapeutic segments.
Based on reported figures, Zai Lab's ROIC has remained deeply negative, fluctuating between -10.7% and -143.1% over the last ten quarters, which indicates that the firm is currently destroying shareholder value rather than compounding it through its aggressive investment in clinical trials and commercial infrastructure.
The persistent negative returns on invested capital suggest that the company's heavy reliance on external licensing and high R&D spending has yet to yield a self-sustaining economic engine. Investors should monitor whether the shift toward internal R&D can eventually improve these returns or if it will simply exacerbate the existing capital inefficiency.
As reported in financial statements, Zai Lab's cash conversion cycle has shown extreme volatility, ranging from -141 days to 4 days, which highlights significant inconsistencies in inventory management and the timing of payments to global licensing partners compared to more stable, vertically integrated pharmaceutical peers.
The erratic nature of the CCC suggests that the company lacks the operational maturity to optimize its working capital effectively. This instability may indicate that the firm is frequently forced to prioritize liquidity over efficiency, potentially leading to suboptimal inventory levels or strained relationships with suppliers.
According to recent quarterly filings, the company's current ratio has compressed from a peak of 4.63 in 2024Q1 to 2.40 in 2026Q1, signaling that the firm's short-term financial flexibility is tightening as it continues to fund its operations through a combination of cash reserves and debt.
While a current ratio of 2.40 remains technically adequate, the downward trend is concerning given the company's persistent operational cash burn. This suggests that the firm may face increased pressure to access capital markets in the near term, which could lead to further shareholder dilution.
Institutional analysts often misapply the price-to-sales ratio to Zai Lab, as this metric obscures the substantial royalty obligations that effectively cap the company's gross margin potential and distort the true economic value of its top-line revenue growth compared to fully integrated global pharmaceutical entities.
Investors should instead focus on net economic benefit or royalty-adjusted revenue to better understand the company's underlying earning power. Relying on standard P/S multiples may lead to an overestimation of the firm's long-term profitability potential, as it fails to account for the structural leakage of profits to original IP holders.
Includes 30+ ratios · 11 years · Updated daily
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Quick answers to the most common questions about buying ZLAB stock.
Zai Lab Limited's current P/E ratio is -12.1x. This places it at the 50th percentile of its historical range.
Zai Lab Limited's return on equity (ROE) is -22.6%. The historical average is -44.7%.
Based on historical data, Zai Lab Limited is trading at a P/E of -12.1x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Zai Lab Limited has 58.5% gross margin and -48.6% operating margin.