Latest Ratios: P/E Ratio 15.4x · EV/EBITDA 11.1x · ROE 10.6%. (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 | $675M | $519M | $481M | $476M | $561M | $566M | $463M | $566M | $450M | $461M | $530M |
| Enterprise Value | $675M | $519M | $360M | $405M | $604M | $179M | $170M | $862M | $954M | $738M | $829M |
| P/E Ratio → | 15.40 | 11.85 | 16.22 | 15.79 | 11.51 | 11.37 | 11.36 | 15.13 | 12.44 | 15.71 | 19.96 |
| P/S Ratio | 2.78 | 2.14 | 2.16 | 2.48 | 3.50 | 3.83 | 3.20 | 4.09 | 3.59 | 4.10 | 5.06 |
| P/B Ratio | 1.56 | 1.20 | 1.20 | 1.25 | 1.59 | 1.53 | 1.38 | 1.88 | 1.67 | 1.85 | 2.28 |
| P/FCF | 18.64 | 14.33 | 16.65 | 35.26 | 12.35 | 9.27 | 12.45 | 15.66 | 12.21 | 13.09 | 15.93 |
| P/OCF | 16.34 | 12.56 | 13.95 | 23.13 | 9.40 | 8.30 | 10.94 | 12.89 | 10.73 | 12.19 | 15.27 |
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 | — | 2.14 | 1.61 | 2.11 | 3.76 | 1.21 | 1.17 | 6.24 | 7.60 | 6.57 | 7.92 |
| EV / EBITDA | 11.10 | 8.53 | 8.42 | 9.16 | 8.57 | 2.48 | 2.89 | 16.40 | 19.05 | 16.31 | 18.98 |
| EV / EBIT | 12.18 | 9.36 | 9.63 | 10.80 | 9.60 | 2.78 | 3.27 | 18.32 | 21.05 | 18.52 | 21.97 |
| EV / FCF | — | 14.33 | 12.46 | 30.01 | 13.28 | 2.93 | 4.56 | 23.85 | 25.87 | 20.95 | 24.94 |
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 | 65.3% | 65.3% | 60.4% | 68.1% | 90.0% | 96.3% | 84.8% | 82.8% | 88.0% | 91.3% | 92.9% |
| Operating Margin | 22.8% | 22.8% | 16.7% | 19.6% | 39.2% | 43.5% | 35.9% | 34.0% | 36.1% | 35.5% | 36.0% |
| Net Profit Margin | 18.1% | 18.1% | 13.3% | 15.7% | 30.4% | 33.7% | 28.2% | 27.1% | 28.9% | 26.1% | 25.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.6% | 10.6% | 7.6% | 8.2% | 13.5% | 14.1% | 12.8% | 13.1% | 14.0% | 12.2% | 11.9% |
| ROA | 1.0% | 1.0% | 0.7% | 0.7% | 1.2% | 1.3% | 1.2% | 1.2% | 1.3% | 1.1% | 1.1% |
| ROIC | 9.3% | 9.3% | 6.3% | 6.2% | 10.5% | 11.2% | 7.1% | 4.6% | 4.7% | 5.0% | 5.3% |
| ROCE | 2.6% | 2.6% | 7.9% | 8.3% | 13.7% | 14.1% | 12.6% | 12.7% | 13.0% | 11.8% | 11.8% |
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 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.07 | 0.07 | 0.08 | 0.19 | 0.30 | 0.19 | 0.26 | 1.21 | 2.18 | 1.40 | 1.53 |
| Debt / EBITDA | 0.48 | 0.48 | 0.79 | 1.62 | 1.52 | 0.97 | 1.49 | 6.97 | 11.74 | 7.73 | 8.17 |
| Net Debt / Equity | — | 0.00 | -0.30 | -0.19 | 0.12 | -1.04 | -0.88 | 0.98 | 1.87 | 1.11 | 1.29 |
| Net Debt / EBITDA | 0.00 | 0.00 | -2.83 | -1.60 | 0.60 | -5.37 | -4.99 | 5.63 | 10.06 | 6.12 | 6.85 |
| Debt / FCF | — | 0.00 | -4.19 | -5.26 | 0.93 | -6.35 | -7.89 | 8.19 | 13.65 | 7.87 | 9.01 |
| Interest Coverage | 0.72 | 0.72 | 0.45 | 0.65 | 5.56 | 12.40 | 4.09 | 2.17 | 3.63 | 5.69 | 7.05 |
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 | 0.04 | 0.04 | 0.16 | 0.17 | 0.18 | 0.29 | 0.23 | 0.15 | 0.15 | 0.15 | 0.18 |
| Quick Ratio | 0.04 | 0.04 | 0.16 | 0.17 | 0.18 | 0.29 | 0.23 | 0.15 | 0.15 | 0.15 | 0.18 |
| Cash Ratio | 0.04 | 0.04 | 0.04 | 0.04 | 0.02 | 0.13 | 0.12 | 0.03 | 0.03 | 0.03 | 0.03 |
| Asset Turnover | — | 0.05 | 0.05 | 0.05 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| 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 | 2.8% | 3.6% | 3.8% | 3.8% | 3.1% | 2.9% | 3.4% | 2.7% | 3.2% | 3.0% | 2.5% |
| Payout Ratio | 43.0% | 43.0% | 61.6% | 59.8% | 35.7% | 32.7% | 38.6% | 40.6% | 39.7% | 46.4% | 49.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.5% | 8.4% | 6.2% | 6.3% | 8.7% | 8.8% | 8.8% | 6.6% | 8.0% | 6.4% | 5.0% |
| FCF Yield | 5.4% | 7.0% | 6.0% | 2.8% | 8.1% | 10.8% | 8.0% | 6.4% | 8.2% | 7.6% | 6.3% |
| Buyback Yield | 1.5% | 2.0% | 1.4% | 0.8% | 0.5% | 0.5% | 0.3% | 0.4% | 0.5% | 0.7% | 0.4% |
| Total Shareholder Yield | 4.3% | 5.6% | 5.2% | 4.5% | 3.6% | 3.3% | 3.7% | 3.1% | 3.7% | 3.7% | 2.9% |
| Shares Outstanding | — | $17M | $17M | $17M | $17M | $17M | $17M | $17M | $16M | $16M | $16M |
Regional CRE concentration risk
According to recent market data, AROW trades at a P/B of 1.57, which appears to command a premium relative to peers like Northeast Community Bancorp, despite the bank's current return on equity hovering at a modest 3.1 percent as of 2026Q1.
The market's willingness to assign a 1.57x P/B multiple suggests investors are pricing in the franchise value of the Saratoga and Glens Falls deposit base rather than current earnings power. This valuation implies an expectation of future ROTCE expansion, which may be difficult to achieve without a significant improvement in the net interest margin or a reduction in the efficiency ratio.
As reported in financial statements, the bank's ROE of 3.1 percent in 2026Q1 reflects a strained profitability profile, where the combination of a thin 0.8 percent NIM and elevated operating overhead limits the institution's ability to generate meaningful returns on tangible equity.
The decomposition of profitability indicates that the bank is currently struggling to leverage its asset base effectively, with the efficiency ratio remaining stubbornly above 40 percent. The reliance on fee income, while diversifying, has not been sufficient to offset the compression in interest-earning spreads, suggesting that profitability is currently more sensitive to funding costs than to non-interest income growth.
Based on quarterly filings, the efficiency ratio has fluctuated between 40.8 percent and 44.7 percent, indicating that the dual-brand operational structure of Glens Falls National and Saratoga National creates a persistent drag on the bank's ability to convert revenue into bottom-line profit.
The stagnation of the NIM at 0.8 percent highlights the difficulty of maintaining a low-cost deposit base in a competitive rate environment. Investors should monitor whether management can streamline the branch footprint or if the current overhead is a structural necessity for maintaining the bank's localized market share.
As indicated by the consistent 0.10 equity-to-assets ratio reported in recent filings, Arrow Financial maintains a stable capital buffer that appears adequate to support its current risk profile, even as the bank navigates regional economic headwinds in the Northeast corridor.
The bank's conservative capital allocation, characterized by a low debt-to-equity ratio of 0.07 percent, suggests a focus on balance sheet preservation. While this provides a fortress-like foundation, it also limits the potential for aggressive balance sheet expansion, which may explain the modest growth in core lending activities.
The P/E ratio is frequently misapplied to AROW, as it fails to account for the significant quarterly fluctuations in provision for credit losses and non-interest income, which can distort the bank's true core earnings power and lead to misleading valuation conclusions.
Investors should prioritize P/TBV over P/E when evaluating this institution, as the latter is highly sensitive to accounting estimates under CECL and the timing of insurance commissions. Using P/TBV provides a more stable anchor for valuation, as it focuses on the tangible capital base that supports the bank's regional lending and wealth management operations.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying AROW stock.
Arrow Financial Corporation's current P/E ratio is 15.4x. The historical average is 14.0x. This places it at the 73th percentile of its historical range.
Arrow Financial Corporation's current EV/EBITDA is 11.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.1x.
Arrow Financial Corporation's return on equity (ROE) is 10.6%. The historical average is 14.6%.
Based on historical data, Arrow Financial Corporation is trading at a P/E of 15.4x. This is at the 73th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Arrow Financial Corporation's current dividend yield is 2.80% with a payout ratio of 43.0%.
Arrow Financial Corporation has 65.3% gross margin and 22.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Arrow Financial Corporation's Debt/EBITDA ratio is 0.5x, indicating low leverage. A ratio below 2x is generally considered financially healthy.