Latest Ratios: P/E Ratio 9.4x · EV/EBITDA 7.6x · ROE 12.1%. (2011–2025 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 | $6.0B | $6.5B | $5.8B | $5.6B | $4.2B | $5.1B | $4.6B | $5.1B | $3.3B | $4.1B | $3.0B |
| Enterprise Value | $6.3B | $6.9B | $6.2B | $5.9B | $4.5B | $5.4B | $4.8B | $5.3B | $3.5B | $4.3B | $3.1B |
| P/E Ratio → | 9.36 | 9.42 | 7.95 | 8.11 | 5.04 | 7.45 | 11.13 | 9.19 | 7.17 | 10.88 | 13.43 |
| P/S Ratio | 4.72 | 5.16 | 4.58 | 5.00 | 4.11 | 4.94 | 4.81 | 5.89 | 4.66 | 7.17 | 6.52 |
| P/B Ratio | 1.12 | 1.13 | 1.04 | 1.11 | 0.94 | 1.20 | 1.19 | 1.71 | 1.42 | 2.13 | 2.22 |
| P/FCF | 7.01 | 7.66 | 6.79 | 7.44 | 7.16 | 7.19 | 6.33 | 8.71 | 5.39 | 11.30 | 11.05 |
| P/OCF | 6.95 | 7.60 | 6.73 | 7.40 | 7.11 | 7.16 | 6.31 | 8.66 | 5.36 | 11.22 | 10.92 |
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 | — | 5.45 | 4.86 | 5.24 | 4.44 | 5.27 | 5.04 | 6.06 | 4.88 | 7.53 | 6.67 |
| EV / EBITDA | 7.65 | 8.31 | 7.16 | 7.17 | 4.57 | 6.56 | 9.76 | 7.94 | 6.38 | 10.78 | 9.68 |
| EV / EBIT | 7.70 | 8.04 | 6.92 | 6.95 | 4.51 | 6.52 | 9.64 | 7.86 | 6.30 | 10.75 | 9.79 |
| EV / FCF | — | 8.10 | 7.21 | 7.81 | 7.74 | 7.67 | 6.64 | 8.97 | 5.65 | 11.86 | 11.31 |
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 | 88.2% | 88.2% | 93.6% | 97.2% | 117.2% | 97.0% | 68.5% | 96.2% | 98.4% | 95.3% | 100.0% |
| Operating Margin | 65.2% | 65.2% | 67.5% | 72.8% | 97.0% | 80.0% | 51.3% | 76.0% | 76.0% | 69.1% | 68.1% |
| Net Profit Margin | 54.7% | 54.7% | 57.6% | 61.6% | 81.6% | 66.3% | 43.2% | 64.1% | 65.0% | 65.9% | 48.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 12.1% | 12.1% | 13.6% | 14.6% | 19.1% | 16.8% | 12.1% | 20.8% | 21.7% | 23.1% | 18.1% |
| ROA | 9.5% | 9.5% | 10.8% | 11.5% | 14.5% | 12.5% | 9.1% | 15.8% | 16.0% | 16.7% | 13.3% |
| ROIC | 10.2% | 10.2% | 11.3% | 12.1% | 15.8% | 14.2% | 10.2% | 17.5% | 17.6% | 16.8% | 18.6% |
| ROCE | 13.5% | 13.5% | 12.6% | 14.7% | 18.6% | 16.2% | 12.1% | 22.7% | 21.8% | 20.6% | 22.3% |
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 | 0.09 | 0.09 | 0.09 | 0.08 | 0.09 | 0.10 | 0.08 | 0.08 | 0.09 | 0.13 | 0.07 |
| Debt / EBITDA | 0.60 | 0.60 | 0.57 | 0.51 | 0.42 | 0.51 | 0.65 | 0.34 | 0.41 | 0.62 | 0.32 |
| Net Debt / Equity | — | 0.06 | 0.06 | 0.05 | 0.08 | 0.08 | 0.06 | 0.05 | 0.07 | 0.11 | 0.05 |
| Net Debt / EBITDA | 0.45 | 0.45 | 0.42 | 0.34 | 0.34 | 0.41 | 0.44 | 0.23 | 0.29 | 0.51 | 0.23 |
| Debt / FCF | — | 0.44 | 0.42 | 0.37 | 0.58 | 0.48 | 0.30 | 0.26 | 0.26 | 0.56 | 0.27 |
| Interest Coverage | 26.14 | 26.14 | 25.22 | 28.31 | 64.31 | 100.29 | 55.01 | 65.93 | 54.71 | 77.97 | 733.12 |
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 | 5.75 | 5.75 | — | 0.41 | 0.93 | 12.13 | 14.67 | 5.21 | 0.18 | 0.29 | 0.11 |
| Quick Ratio | 5.75 | 5.75 | — | 0.41 | 0.93 | 12.13 | 14.67 | 5.21 | 0.18 | 0.29 | 0.11 |
| Cash Ratio | 5.24 | 5.24 | — | 0.28 | 0.80 | 12.02 | 14.51 | 5.15 | 5.04 | 9.31 | 0.06 |
| Asset Turnover | — | 0.17 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.22 | 0.23 | 0.22 | 0.24 |
| 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 | 1.9% | 1.9% | 2.0% | 1.9% | 2.2% | 1.5% | 1.5% | 0.6% | — | — | — |
| Payout Ratio | 17.7% | 17.7% | 16.2% | 15.3% | 11.1% | 11.4% | 16.8% | 5.3% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 10.7% | 10.6% | 12.6% | 12.3% | 19.9% | 13.4% | 9.0% | 10.9% | 14.0% | 9.2% | 7.4% |
| FCF Yield | 14.3% | 13.1% | 14.7% | 13.4% | 14.0% | 13.9% | 15.8% | 11.5% | 18.6% | 8.8% | 9.1% |
| Buyback Yield | 9.9% | 9.0% | 1.9% | 1.3% | 2.3% | 3.2% | 0.1% | 0.2% | 0.9% | 0.2% | 0.1% |
| Total Shareholder Yield | 11.8% | 10.9% | 4.0% | 3.1% | 4.5% | 4.8% | 1.6% | 0.8% | 0.9% | 0.2% | 0.1% |
| Shares Outstanding | — | $100M | $107M | $107M | $108M | $112M | $106M | $98M | $98M | $95M | $92M |
U.S. housing credit concentration
Based on a P/B ratio of 1.11, Essent trades at a valuation that appears to reflect its superior capital position relative to peers, as reported in recent market data, suggesting investors are pricing in the firm's low leverage and consistent underwriting profitability over pure growth metrics.
The current P/B multiple suggests that the market rewards Essent's clean balance sheet and disciplined risk-pricing framework. While peers like NMI Holdings trade at similar multiples, Essent's ability to maintain a 0.09% debt-to-equity ratio warrants this premium, as it implies a lower risk of capital impairment during housing market volatility.
As reported in quarterly financial filings, the combined ratio has remained well below the 100% threshold, fluctuating between 24.9% and 42.5% over the last ten quarters, which indicates that the company continues to generate significant underwriting profits despite cyclical shifts in loss ratio performance.
The trajectory of the combined ratio suggests that Essent's proprietary EssentEDGE engine effectively manages adverse selection. The recent uptick in the loss ratio to 17.9% in 2025Q4 warrants monitoring, though it appears to be a manageable deviation rather than a structural breakdown in underwriting quality.
According to historical balance sheet figures, the company maintains a debt-to-equity ratio of 0.09%, which is significantly lower than the broader industry average, suggesting that Essent possesses a fortress-like capital base that provides substantial protection against potential credit losses in its insured mortgage portfolio.
This low underwriting leverage indicates that the company is not overly reliant on debt to support its insurance-in-force base. Such a conservative capital structure appears to provide the firm with the necessary flexibility to return capital to shareholders while maintaining regulatory compliance under PMIERs.
As noted in institutional research, the P/E ratio is frequently misapplied to Essent, as it obscures the impact of reserve releases and investment income volatility, which can artificially inflate or deflate earnings in any given quarter, making it a poor proxy for long-term underwriting health.
Investors should instead focus on the combined ratio and book value growth to assess the true economic value of the franchise. Relying on P/E ignores the recurring nature of the premium float and the non-cash accounting adjustments that often distort the headline earnings figure.
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Quick answers to the most common questions about buying ESNT stock.
Essent Group Ltd.'s current P/E ratio is 9.4x. The historical average is 12.4x. This places it at the 46th percentile of its historical range.
Essent Group Ltd.'s current EV/EBITDA is 7.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.5x.
Essent Group Ltd.'s return on equity (ROE) is 12.1%. The historical average is 12.4%.
Based on historical data, Essent Group Ltd. is trading at a P/E of 9.4x. This is at the 46th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Essent Group Ltd.'s current dividend yield is 1.89% with a payout ratio of 17.7%.
Essent Group Ltd. has 88.2% gross margin and 65.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Essent Group Ltd.'s Debt/EBITDA ratio is 0.6x, indicating low leverage. A ratio below 2x is generally considered financially healthy.