Latest Ratios: P/E Ratio 8.8x · EV/EBITDA 7.2x · ROE 19.5%. (1996–2025 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 | $35.6B | $36.1B | $35.3B | $28.1B | $23.7B | $17.8B | $14.8B | $17.7B | $11.0B | $12.6B | $10.8B |
| Enterprise Value | $37.3B | $37.8B | $37.0B | $29.9B | $25.6B | $19.7B | $16.9B | $19.3B | $12.6B | $14.6B | $12.4B |
| P/E Ratio → | 8.76 | 8.25 | 8.25 | 6.39 | 16.52 | 8.50 | 10.86 | 11.08 | 14.52 | 22.25 | 16.16 |
| P/S Ratio | 1.78 | 1.81 | 2.02 | 2.12 | 2.45 | 1.99 | 1.78 | 2.60 | 2.02 | 2.35 | 2.42 |
| P/B Ratio | 1.58 | 1.49 | 1.69 | 1.53 | 1.83 | 1.31 | 1.06 | 1.43 | 1.06 | 1.23 | 1.16 |
| P/FCF | 5.80 | 5.89 | 5.32 | 4.94 | 6.30 | 5.26 | 5.20 | 8.78 | 7.21 | 11.60 | 7.79 |
| P/OCF | 5.76 | 5.85 | 5.28 | 4.89 | 6.21 | 5.19 | 5.13 | 8.62 | 7.08 | 11.36 | 7.70 |
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 | — | 1.90 | 2.12 | 2.25 | 2.65 | 2.20 | 2.04 | 2.84 | 2.30 | 2.72 | 2.79 |
| EV / EBITDA | 7.21 | 7.31 | 7.86 | 9.35 | 17.30 | 10.81 | 11.40 | 10.68 | 13.94 | 19.69 | 15.01 |
| EV / EBIT | 7.49 | 7.33 | 8.02 | 8.51 | 15.81 | 8.77 | 9.92 | 9.80 | 13.07 | 16.67 | 13.46 |
| EV / FCF | — | 6.17 | 5.59 | 5.26 | 6.80 | 5.81 | 5.94 | 9.59 | 8.22 | 13.38 | 8.98 |
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 | 37.2% | 37.2% | 37.0% | 35.6% | 29.9% | 34.0% | 31.3% | 41.4% | 32.5% | 30.3% | 35.9% |
| Operating Margin | 25.0% | 25.0% | 25.7% | 23.4% | 14.2% | 19.5% | 17.1% | 25.4% | 14.5% | 11.5% | 18.1% |
| Net Profit Margin | 22.1% | 22.1% | 24.7% | 33.4% | 15.3% | 24.2% | 17.0% | 24.1% | 13.8% | 11.5% | 15.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 19.5% | 19.5% | 22.0% | 28.4% | 11.1% | 15.7% | 10.7% | 14.4% | 7.3% | 6.3% | 8.4% |
| ROA | 6.4% | 6.4% | 6.6% | 8.3% | 3.2% | 4.9% | 3.5% | 4.7% | 2.4% | 2.0% | 2.6% |
| ROIC | 15.4% | 15.4% | 15.7% | 13.3% | 6.8% | 8.3% | 7.1% | 10.0% | 4.9% | 4.0% | 6.4% |
| ROCE | 11.6% | 11.6% | 18.0% | 15.5% | 7.9% | 10.4% | 3.5% | 4.9% | 2.5% | 2.0% | 3.1% |
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 | 0.11 | 0.11 | 0.13 | 0.15 | 0.21 | 0.20 | 0.22 | 0.19 | 0.21 | 0.25 | 0.27 |
| Debt / EBITDA | 0.53 | 0.53 | 0.58 | 0.85 | 1.84 | 1.50 | 2.03 | 1.30 | 2.43 | 3.44 | 3.01 |
| Net Debt / Equity | — | 0.07 | 0.08 | 0.10 | 0.14 | 0.14 | 0.15 | 0.13 | 0.15 | 0.19 | 0.18 |
| Net Debt / EBITDA | 0.34 | 0.34 | 0.37 | 0.56 | 1.27 | 1.03 | 1.42 | 0.90 | 1.71 | 2.62 | 1.99 |
| Debt / FCF | — | 0.28 | 0.26 | 0.32 | 0.50 | 0.55 | 0.74 | 0.81 | 1.01 | 1.78 | 1.19 |
| Interest Coverage | 34.86 | 34.86 | 32.73 | 26.45 | 12.35 | 16.13 | 11.88 | 16.28 | 7.99 | 7.45 | 13.91 |
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 | 1.21 | 1.21 | 0.63 | 0.67 | 0.66 | 0.70 | — | — | — | — | — |
| Quick Ratio | 1.21 | 1.21 | 0.63 | 0.67 | 0.66 | 0.70 | — | — | — | — | — |
| Cash Ratio | 1.55 | 1.55 | 0.21 | 0.22 | 0.21 | 0.26 | — | — | — | — | — |
| Asset Turnover | — | 0.30 | 0.25 | 0.23 | 0.20 | 0.20 | 0.19 | 0.18 | 0.17 | 0.17 | 0.15 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
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 | 0.0% | 0.0% | 5.3% | 0.1% | 0.2% | 0.3% | 0.3% | 0.2% | 0.4% | 0.4% | 0.3% |
| Payout Ratio | 0.2% | 0.2% | 43.3% | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 11.4% | 12.1% | 12.1% | 15.6% | 6.1% | 11.8% | 9.2% | 9.0% | 6.9% | 4.5% | 6.2% |
| FCF Yield | 17.2% | 17.0% | 18.8% | 20.2% | 15.9% | 19.0% | 19.2% | 11.4% | 13.9% | 8.6% | 12.8% |
| Buyback Yield | 5.3% | 5.2% | 0.1% | 0.0% | 2.5% | 6.9% | 0.6% | 0.0% | 3.5% | 2.0% | 0.7% |
| Total Shareholder Yield | 5.3% | 5.3% | 5.4% | 0.1% | 2.6% | 7.2% | 0.8% | 0.3% | 3.8% | 2.4% | 1.0% |
| Shares Outstanding | — | $376M | $382M | $379M | $378M | $400M | $410M | $412M | $413M | $418M | $374M |
Social inflation and litigation
Based on reported figures, Arch Capital’s P/B ratio of 1.52 suggests that the market assigns a premium valuation to the firm compared to pure-play reinsurers like RenaissanceRe, likely reflecting investor confidence in the earnings stability provided by the unique mortgage insurance segment and disciplined underwriting cycle management.
The current P/B multiple appears to price in a higher ROE expectation than traditional reinsurance peers, suggesting that the market views Arch as a diversified financial utility rather than a volatile catastrophe-exposed carrier. Investors should monitor whether this valuation premium holds as the company integrates larger primary insurance portfolios, which may introduce new earnings volatility.
According to recent quarterly data, Arch Capital maintained a combined ratio of 73.7% in 2026Q1, which, when compared to the 85.2% peak observed in 2025Q1, indicates a strong ability to manage underwriting profitability despite the inherent volatility of loss ratios across its diversified insurance and reinsurance segments.
The trajectory of the combined ratio suggests that management successfully pivots capital toward more profitable lines during market hardening, effectively insulating the bottom line from localized pricing pressures. However, the fluctuation in the loss ratio warrants further investigation into whether recent improvements are driven by core risk selection or favorable prior-year reserve development.
As reported in financial statements, Arch Capital’s ROE has fluctuated between 2.7% and 13.9% over the last ten quarters, reflecting a profitability profile that remains highly sensitive to both underwriting outcomes and the investment yield generated on the company's substantial float in a higher-for-longer interest rate environment.
The firm's ability to sustain profitability appears to rely on the counter-cyclical nature of its mortgage insurance segment, which provides a margin buffer when traditional P&C lines face catastrophe-related headwinds. Analysts should interpret the recent ROE compression as a potential signal of market normalization rather than a structural decline in the company's underlying earning power.
While the market often focuses on the P/E ratio of 8.39, this metric is frequently misapplied to Arch Capital because it obscures the significant impact of non-cash reserve adjustments and catastrophe-related earnings volatility that do not reflect the long-term economic value of the firm's underwriting franchise.
Investors should prioritize the Price-to-Book ratio as the primary valuation anchor, as it better accounts for the capital-intensive nature of the insurance business and the value of the invested assets backing reserves. Relying on P/E may lead to erroneous conclusions during periods of significant reserve releases or unexpected catastrophe losses, which can artificially distort short-term earnings.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying ACGL stock.
Arch Capital Group Ltd.'s current P/E ratio is 8.8x. The historical average is 25.3x. This places it at the 29th percentile of its historical range.
Arch Capital Group Ltd.'s current EV/EBITDA is 7.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.6x.
Arch Capital Group Ltd.'s return on equity (ROE) is 19.5%. The historical average is 11.3%.
Based on historical data, Arch Capital Group Ltd. is trading at a P/E of 8.8x. This is at the 29th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Arch Capital Group Ltd.'s current dividend yield is 0.02% with a payout ratio of 0.2%.
Arch Capital Group Ltd. has 37.2% gross margin and 25.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Arch Capital Group Ltd.'s Debt/EBITDA ratio is 0.5x, indicating low leverage. A ratio below 2x is generally considered financially healthy.