Qnity Electronics, Inc. (Q) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-75.4%

$28.72

vs $116.74 price

Levered DCF

$28.53

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.91

Grey zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022
P/E	24.74×	28.8×	39.37×	25.79×
P/B	2.41×	1.88×	1.82×	0×
P/S	3.6×	4.6×	4.95×	4.2×
EV / EBITDA	15.09×	15.47×	19.36×	0×
Gross margin	41.8%	46.1%	43.5%	45.4%
Operating margin	21.3%	19.5%	16.3%	21.7%
Net margin	14.6%	16.0%	12.6%	16.3%
Current ratio	1.95×	1.77×	2.01×	0×
Debt / equity	0.7×	0.02×	0.02×	0×
Interest coverage	15.6×	3.03×	0×	0×
Dividend yield	0.1%	0.0%	0.0%	0.0%
Payout ratio	1.9%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022
Return on equity	9.8%	6.5%	4.6%	0.0%
Return on invested capital	6.0%	5.9%	4.7%	0.0%
Return on assets	4.9%	5.6%	4.1%	0.0%
Free cash flow yield	5.8%	4.3%	3.3%	4.8%
Earnings yield	4.0%	3.5%	2.5%	3.9%
Enterprise value	$21.2B	$20B	$20B	$0
Net debt / EBITDA	2.9×	0.02×	0.08×	0×
Cash conversion cycle (days)	74	80	83	0