Latest Ratios: P/E Ratio -33.7x · EV/EBITDA N/A · ROE -29.4%. (2017–2025 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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.0B | $5.1B | $2.6B | $1.1B | $888M | $2.6B | $6.8B | — | — | — |
| Enterprise Value | $5.8B | $4.9B | $2.3B | $902M | $641M | $2.3B | $6.2B | — | — | — |
| P/E Ratio → | -33.73 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 8.08 | 6.93 | 4.95 | 2.61 | 3.46 | 20.08 | 71.79 | — | — | — |
| P/B Ratio | 10.44 | 9.58 | 4.39 | 1.58 | 1.02 | 2.61 | 12.53 | — | — | — |
| P/FCF | — | — | — | — | — | — | — | — | — | — |
| P/OCF | — | — | — | — | — | — | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.65 | 4.44 | 2.10 | 2.50 | 18.15 | 65.74 | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 40.3% | 40.3% | 32.8% | 21.0% | 11.1% | 17.8% | 21.6% | 17.7% | 13.8% | 100.0% |
| Operating Margin | -21.8% | -21.8% | -38.7% | -53.5% | -114.8% | -181.9% | -128.0% | -160.3% | -233.8% | -1095.8% |
| Net Profit Margin | -22.4% | -22.4% | -38.4% | -55.1% | -116.0% | -187.9% | -129.6% | -161.2% | -235.1% | -1170.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -29.4% | -29.4% | -31.1% | -30.1% | -32.1% | -31.6% | -68.2% | — | — | -87.8% |
| ROA | -8.8% | -8.8% | -11.6% | -14.3% | -18.6% | -20.6% | -19.7% | -38.2% | -54.5% | -69.4% |
| ROIC | -36.8% | -36.8% | -37.7% | -31.1% | -32.5% | -49.3% | — | — | — | -130.6% |
| ROCE | -22.7% | -22.7% | -28.1% | -27.8% | -30.8% | -34.9% | -19.4% | -38.0% | -56.0% | -69.2% |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.34 | 0.34 | 0.18 | 0.06 | 0.04 | 0.02 | — | — | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.38 | -0.45 | -0.31 | -0.29 | -0.25 | -1.06 | — | — | -0.53 |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | — | -9.94 |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($385M) exceeds total debt ($182M)
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.52 | 1.52 | 1.53 | 1.74 | 2.00 | 2.93 | — | — | 39.24 | 14.36 |
| Quick Ratio | 1.52 | 1.52 | 1.53 | 1.74 | 2.00 | 2.93 | — | — | 74.89 | 14.36 |
| Cash Ratio | 0.92 | 0.92 | 0.88 | 1.06 | 1.31 | 2.14 | — | — | 29.32 | 12.00 |
| Asset Turnover | — | 0.38 | 0.28 | 0.26 | 0.15 | 0.09 | 0.11 | 0.16 | 0.15 | 0.06 |
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Shares Outstanding | — | $72M | $71M | $70M | $65M | $61M | $55M | $44M | $44M | $11M |
Underwriting volatility and capital
Based on current market data, Lemonade trades at a 7.92x price-to-book multiple, which appears significantly elevated compared to traditional P&C insurers, suggesting investors are pricing in a high-growth technology platform premium rather than a standard insurance carrier valuation based on tangible book value.
The 7.92x P/B multiple implies that the market expects substantial future earnings power that is not currently visible in the company's negative ROE. This valuation suggests a reliance on the 'data flywheel' thesis, where investors are willing to overlook current underwriting losses in anticipation of long-term margin expansion through AI-driven efficiency.
As reported in recent financial filings, the combined ratio of 114.8% in 2026Q1 highlights a persistent underwriting deficit, indicating that the company's loss and expense ratios have yet to reach the sub-100% threshold required for sustainable, self-funded insurance operations.
The trajectory of the combined ratio, which fluctuated from 140.6% in 2025Q1 to 114.8% in 2026Q1, suggests that while underwriting performance is improving, it remains highly sensitive to claims severity. The inability to consistently maintain a combined ratio below 100% implies that the company remains dependent on external capital to support its growth initiatives.
According to the provided quarterly balance sheet data, the company's D/E ratio of 0.35 in 2026Q1 reflects a capital structure that is increasingly pressured by the need to support rising premium volumes while simultaneously absorbing persistent operating losses and maintaining adequate regulatory capital buffers.
The premium-to-surplus ratio is a critical metric for monitoring underwriting leverage, and the current trend suggests that Lemonade must carefully balance its growth ambitions against its finite capital base. Investors should monitor whether the company's reliance on reinsurance continues to serve as a necessary capital-light substitute for retained earnings.
Based on institutional research standards, the price-to-earnings (P/E) ratio is frequently misapplied to Lemonade, as the company's current negative earnings and heavy reliance on reserve adjustments render traditional P/E multiples meaningless for assessing the underlying health of its insurance underwriting business.
Using P/E to value an insurer in a growth phase often obscures the fundamental importance of the combined ratio and reserve development. Analysts should instead prioritize the combined ratio and book value growth, as these metrics provide a more accurate reflection of the company's ability to eventually generate sustainable underwriting profit.
Includes 30+ ratios · 9 years · Updated daily
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying LMND stock.
Lemonade, Inc.'s current P/E ratio is -33.7x. This places it at the 50th percentile of its historical range.
Lemonade, Inc.'s return on equity (ROE) is -29.4%. The historical average is -44.3%.
Based on historical data, Lemonade, Inc. is trading at a P/E of -33.7x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Lemonade, Inc. has 40.3% gross margin and -21.8% operating margin.