Latest Ratios: P/E Ratio 22.9x · EV/EBITDA 12.6x · ROE 106.0%. (2016–2025 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 | $5.5B | $4.3B | $4.3B | $2.8B | $1.7B | $3.1B | $4.3B | $4.0B | $2.3B | — | — |
| Enterprise Value | $6.1B | $4.9B | $5.1B | $3.1B | $2.0B | $3.5B | $4.7B | $4.6B | $2.9B | — | — |
| P/E Ratio → | 22.93 | 16.87 | 18.16 | 16.69 | 23.91 | 24.43 | 38.33 | 26.34 | 18.03 | — | — |
| P/S Ratio | 2.63 | 2.05 | 2.31 | 1.60 | 1.03 | 1.96 | 2.91 | 2.95 | 1.79 | — | — |
| P/B Ratio | 24.14 | 17.76 | 17.84 | 20.80 | 27.96 | 1044.52 | — | — | — | — | — |
| P/FCF | 14.14 | 11.05 | 18.46 | 16.76 | 16.72 | 20.35 | 24.53 | 22.62 | 13.91 | — | — |
| P/OCF | 13.25 | 10.36 | 15.79 | 14.11 | 12.01 | 16.94 | 20.74 | 20.13 | 11.93 | — | — |
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 | — | 2.36 | 2.75 | 1.76 | 1.23 | 2.19 | 3.18 | 3.37 | 2.34 | — | — |
| EV / EBITDA | 12.57 | 10.11 | 13.36 | 10.31 | 10.85 | 12.78 | 16.57 | 14.88 | 12.57 | — | — |
| EV / EBIT | 15.36 | 11.86 | 14.51 | 11.44 | 17.15 | 17.85 | 21.81 | 17.55 | 15.48 | — | — |
| EV / FCF | — | 12.71 | 21.91 | 18.44 | 20.01 | 22.83 | 26.79 | 25.83 | 18.16 | — | — |
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 | 55.3% | 55.3% | 53.8% | 47.6% | 40.7% | 46.8% | 48.6% | 49.7% | 43.9% | 49.1% | 48.4% |
| Operating Margin | 19.1% | 19.1% | 18.4% | 15.0% | 9.3% | 15.0% | 16.9% | 21.0% | 17.0% | 20.7% | 19.0% |
| Net Profit Margin | 12.2% | 12.2% | 12.8% | 9.6% | 4.3% | 8.0% | 7.6% | 11.2% | 9.9% | 13.8% | 12.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 106.0% | 106.0% | 125.0% | 172.7% | 221.9% | 4266.7% | — | — | 78.6% | 26.2% | 22.1% |
| ROA | 12.0% | 12.0% | 14.7% | 15.8% | 6.6% | 10.3% | 8.4% | 13.4% | 10.2% | 11.9% | 9.7% |
| ROIC | 31.2% | 31.2% | 35.0% | 49.0% | 29.6% | 50.0% | 51.3% | 58.1% | 43.8% | 45.2% | 35.8% |
| ROCE | 23.0% | 23.0% | 27.2% | 36.2% | 21.9% | 28.4% | 26.4% | 36.2% | 30.4% | 35.5% | 30.6% |
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 | 5.01 | 5.01 | 5.10 | 4.45 | 10.28 | 214.67 | — | — | — | 0.01 | 0.03 |
| Debt / EBITDA | 2.48 | 2.48 | 3.22 | 2.01 | 3.34 | 2.34 | 3.51 | 3.24 | 4.21 | 0.04 | 0.07 |
| Net Debt / Equity | — | 2.67 | 3.34 | 2.08 | 5.49 | 127.33 | — | — | — | -0.41 | -0.28 |
| Net Debt / EBITDA | 1.32 | 1.32 | 2.11 | 0.94 | 1.78 | 1.39 | 1.40 | 1.85 | 2.94 | -1.07 | -0.74 |
| Debt / FCF | — | 1.66 | 3.45 | 1.68 | 3.28 | 2.48 | 2.26 | 3.21 | 4.25 | -1.53 | -1.07 |
| Interest Coverage | 5.28 | 5.28 | 7.27 | 5.83 | 4.58 | 6.79 | 4.48 | 4.44 | 8.26 | 221.00 | — |
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 | 1.55 | 1.55 | 1.32 | 1.10 | 0.91 | 0.78 | 1.55 | 1.27 | 0.96 | 1.05 | 0.93 |
| Quick Ratio | 1.55 | 1.55 | 1.32 | 1.10 | 0.92 | 0.78 | 1.55 | 1.22 | 0.96 | 1.05 | 0.93 |
| Cash Ratio | 1.41 | 1.41 | 1.18 | 0.98 | 0.80 | 0.69 | 1.48 | 1.20 | 0.88 | 0.44 | 0.30 |
| Asset Turnover | — | 0.98 | 0.87 | 1.63 | 1.54 | 1.50 | 1.05 | 1.09 | 1.21 | 0.82 | 0.80 |
| Inventory Turnover | — | — | — | — | — | — | — | 42.94 | — | — | — |
| Days Sales Outstanding | — | 1.74 | 1.98 | 1.23 | 1.10 | 1.59 | 1.24 | 2.94 | 3.48 | 128.08 | 133.12 |
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 | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.4% | 5.9% | 5.5% | 6.0% | 4.2% | 4.1% | 2.6% | 3.8% | 5.5% | — | — |
| FCF Yield | 7.1% | 9.1% | 5.4% | 6.0% | 6.0% | 4.9% | 4.1% | 4.4% | 7.2% | — | — |
| Buyback Yield | 5.1% | 6.6% | 3.8% | 4.2% | 3.5% | 3.3% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 5.1% | 6.6% | 3.8% | 4.2% | 3.5% | 3.3% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $75M | $78M | $81M | $82M | $86M | $86M | $85M | $85M | $85M | $85M |
Seasonal Claims Cost Volatility
Based on current market data, Frontdoor trades at a forward P/E of 16.46, which suggests that investors are pricing the company as a cyclical housing play rather than a stable subscription-based service provider when compared to its historical valuation multiples and broader industry peers.
The current P/E ratio of 21.85 indicates that the market remains cautious regarding the sustainability of earnings growth in a high-interest-rate environment. This valuation appears to discount the potential for margin expansion through the company's digital transformation, warranting further investigation into whether the market is underestimating the long-term value of the renewal book.
According to recent financial statements, Frontdoor's ROIC has shown significant volatility, peaking at 24.7% in 2024Q2 before moderating to 5.8% in 2026Q1, which highlights the sensitivity of capital returns to seasonal claims frequency and the timing of strategic investments in the company's digital platform.
The fluctuation in ROIC suggests that while the core subscription model is highly efficient, the company's ability to compound returns is periodically interrupted by the capital-intensive nature of scaling new technology initiatives. Investors should monitor whether the recent decline in ROIC represents a structural shift or a temporary impact from front-loaded R&D spending on the Streem and ProConnect platforms.
As reported in quarterly filings, Frontdoor's asset turnover has remained relatively low, fluctuating between 0.20 and 0.46 over the last ten quarters, which implies that the company's revenue generation is heavily dependent on its service contract base rather than high-velocity asset utilization.
The variability in DSO and DPO metrics suggests that the company manages its working capital to offset the seasonal nature of claims fulfillment. This operational approach appears to prioritize liquidity management during peak summer months, though it may obscure the underlying efficiency of the contractor network's labor utilization.
Based on reported figures, Frontdoor's interest coverage ratio has experienced wide swings, ranging from 0.56 in 2024Q4 to 14.40 in 2024Q3, indicating that the company's ability to service its debt is highly sensitive to the seasonal timing of revenue recognition and operational cash flow.
While the debt-to-equity ratio of 5.01 suggests a reliance on leverage, the company's substantial cash position provides a necessary buffer against potential refinancing risks. The volatility in interest coverage warrants close monitoring, as it may indicate that the company's debt service capacity is more vulnerable to unexpected claims spikes than a traditional, less cyclical business.
The most commonly misapplied ratio for Frontdoor is the P/S multiple, which obscures the company's true earning power by failing to account for the high-margin, recurring nature of the renewal base that differentiates it from cyclical home-related service providers.
Analysts often treat Frontdoor as a direct proxy for U.S. existing home sales, which ignores the resilience of the subscription-based renewal book that drives the majority of long-term profitability. A more appropriate metric would be an adjusted EV/Subscriber or a focus on the lifetime value of the renewal base, which better captures the company's potential as a data-driven service platform.
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Quick answers to the most common questions about buying FTDR stock.
Frontdoor, Inc.'s current P/E ratio is 22.9x. The historical average is 22.8x. This places it at the 50th percentile of its historical range.
Frontdoor, Inc.'s current EV/EBITDA is 12.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.7x.
Frontdoor, Inc.'s return on equity (ROE) is 106.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 107.5%.
Based on historical data, Frontdoor, Inc. is trading at a P/E of 22.9x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Frontdoor, Inc. has 55.3% gross margin and 19.1% operating margin. Operating margin between 10-20% is typical for established companies.
Frontdoor, Inc.'s Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.