PME - promedicus

 PME

04/07/26

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ASX:PME (Pro Medicus) has delivered exceptional growth over the past 5 years, compounding profits at a 39% annual rate and seeing its Return on Equity (ROE) steadily increase to exceed 50%. The company remains virtually debt-free with a cash-heavy balance sheet, though its valuation multiples remain very high. [1, 2, 3, 4, 5]

Profit & Revenue

• Massive Growth: Net Profit After Tax (NPAT) has grown consistently, jumping from roughly A$31 million three years ago to record highs exceeding A$115 million in recent periods. [1, 2, 3]
• Margins: The company boasts industry-leading margins, with net profit margins exceeding 50% and gross margins approaching nearly 100% due to its scalable, cloud-based transaction model. [1, 2, 3, 5]

Debt & Financial Health

• Debt-Free: PME has virtually no long-term debt.
• Liquidity: The company holds a highly robust balance sheet with robust cash reserves and short-term investments, resulting in a current ratio above 6.0. [1, 2, 3]

Return on Equity (ROE)

• Top-Tier Returns: PME's ROE has trended upwards over the last 5 years, starting at around 43.5% in 2021 and scaling up to approximately 51.8% to 76.8% in recent tracking periods. This reflects outstanding capital efficiency. [1, 2]

Stock Performance & Valuation

• 5-Year Returns: Driven by ongoing US contract wins and a strong pipeline, the PME share price climbed roughly 263% over the past 5 years, though it has experienced volatility more recently. [1, 2, 3, 4, 5]
• Valuation: Because of its high quality, PME typically trades at a premium—historically commanding a high Price-to-Earnings (P/E) ratio (e.g., in the 90s range). [1, 2, 3, 4]

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PE ratios

The 10-year historical average Price-to-Earnings (P/E) ratio for Pro Medicus Limited (ASX: PME) is approximately 131.38. [1]

As an elite ASX growth engine, Pro Medicus commands an exceptionally high multiple due to its dominant enterprise medical imaging software and consistent near-70% operating margins. Its P/E ratio expanded dramatically alongside rapid contract wins in North America, peaking at over 250x in late FY25 before compressing back to ~91.6x as of July 2026 following a broader tech market derating. [1, 2, 3, 4, 5]

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Historical P/E Ratio Data (Year-End)

Values represent historical tracking of PME's Trailing Twelve Months (TTM) P/E ratio near the close of each corresponding year. [1, 2, 3]

Year [1, 2, 3, 4, 5, 6]	Approximate P/E Ratio (TTM)	Valuation Context
Current (Jul 2026)	91.6x	Valuation compression post-HY26 tech sector pullback.
2025	258.5x	All-time valuation high; hyper-growth pricing over software expansion.
2024	179.0x	Massive expansion driven by landmark Tier-1 US hospital contract wins.
2023	120.0x	Rebound after a brief growth stock cyclical low.
2022	100.0x	Broad market valuation compression due to rising global interest rates.
2021	179.5x	Post-pandemic digital health boom peak acceleration.
2020	128.0x	Strong enterprise contract momentum despite pandemic disruptions.
2019	102.0x	Crosses the triple-digit threshold as Visage 7 software adoption scales.
2018	78.0x	High growth multiples begin establishing as SaaS revenue shifts.
2017	65.0x	Inflection point following early major US healthcare network wins.
2016	58.5x	The 10-year historical minimum multiple base layer.

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