Latest Ratios: P/E Ratio 19.8x · EV/EBITDA 14.0x · ROE 23.6%. (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 | $3.8B | $3.7B | $2.8B | $1.4B | $1.2B | $1.7B | $2.3B | $1.1B | — | — | — |
| Enterprise Value | $3.7B | $3.6B | $2.7B | $1.4B | $1.1B | $1.6B | $2.2B | $1.1B | — | — | — |
| P/E Ratio → | 19.82 | 18.79 | 23.57 | 17.73 | 22.36 | 36.80 | 370.17 | 103.04 | — | — | — |
| P/S Ratio | 4.30 | 4.23 | 5.00 | 3.74 | 3.56 | 6.83 | 13.50 | 9.73 | — | — | — |
| P/B Ratio | 4.14 | 3.93 | 3.80 | 2.98 | 3.03 | 4.29 | 6.25 | 5.04 | — | — | — |
| P/FCF | 9.37 | 9.21 | 10.61 | 12.85 | 7.12 | 20.39 | 45.96 | 28.43 | — | — | — |
| P/OCF | 9.21 | 9.05 | 10.60 | 12.11 | 6.87 | 19.26 | 42.47 | 26.44 | — | — | — |
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 | — | 4.11 | 4.85 | 3.74 | 3.46 | 6.64 | 13.30 | 9.44 | — | — | — |
| EV / EBITDA | 13.99 | 13.74 | 17.20 | 13.01 | 15.81 | 27.10 | 296.42 | 58.46 | — | — | — |
| EV / EBIT | 14.48 | 14.20 | 17.65 | 13.10 | 16.56 | 28.76 | 360.06 | 55.85 | — | — | — |
| EV / FCF | — | 8.97 | 10.30 | 12.86 | 6.92 | 19.82 | 45.29 | 27.58 | — | — | — |
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 | 73.9% | 73.9% | 48.6% | 52.0% | 42.1% | 44.8% | 23.9% | 62.2% | 52.7% | 36.7% | 42.3% |
| Operating Margin | 28.9% | 28.9% | 27.3% | 27.6% | 20.7% | 23.1% | 3.7% | 16.0% | 25.0% | 8.3% | 14.7% |
| Net Profit Margin | 22.5% | 22.5% | 21.2% | 21.1% | 15.9% | 18.5% | 3.7% | 9.4% | 25.0% | 6.4% | 15.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 23.6% | 23.6% | 19.6% | 18.5% | 13.4% | 12.1% | 2.1% | 6.9% | 21.5% | 5.0% | 9.0% |
| ROA | 8.8% | 8.8% | 5.9% | 5.3% | 4.7% | 5.5% | 1.1% | 3.4% | 8.7% | 2.3% | 4.6% |
| ROIC | 25.5% | 25.5% | 20.2% | 18.8% | 14.5% | 12.6% | 1.8% | 9.5% | 14.7% | 4.5% | 5.9% |
| ROCE | 11.3% | 11.3% | 7.6% | 6.9% | 17.3% | 10.6% | 1.2% | 6.0% | 9.5% | 3.2% | — |
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 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | — | 0.11 | 0.09 | 0.01 | — | — | 0.21 | 0.22 | 0.23 |
| Debt / EBITDA | 0.03 | 0.03 | — | 0.49 | 0.51 | 0.06 | — | — | 1.04 | 3.36 | 2.67 |
| Net Debt / Equity | — | -0.11 | -0.11 | 0.00 | -0.08 | -0.12 | -0.09 | -0.15 | 0.10 | 0.08 | 0.10 |
| Net Debt / EBITDA | -0.38 | -0.38 | -0.51 | 0.01 | -0.44 | -0.77 | -4.44 | -1.81 | 0.52 | 1.24 | 1.13 |
| Debt / FCF | — | -0.25 | -0.31 | 0.01 | -0.19 | -0.56 | -0.68 | -0.85 | 0.43 | 0.31 | 0.48 |
| Interest Coverage | 647.40 | 647.40 | 133.86 | 28.45 | 78.38 | 1429.45 | — | 17.93 | 8.91 | 3.82 | 4.84 |
Net cash position: cash ($107M) exceeds total debt ($7M)
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 | — | — | — | — | 1.25 | 1.49 | 13.62 | 270.73 | 6.61 | 12.33 | — |
| Quick Ratio | — | — | — | — | 1.25 | 1.49 | 13.62 | 342.28 | 7.88 | 15.65 | — |
| Cash Ratio | — | — | — | — | 0.63 | 0.91 | 10.04 | 223.06 | 5.28 | 9.74 | — |
| Asset Turnover | — | 0.39 | 0.24 | 0.22 | 0.25 | 0.27 | 0.23 | 0.29 | 0.32 | 0.32 | 0.29 |
| 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 | — | — | — | — | — | — | — | 0.5% | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | 48.2% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.0% | 5.3% | 4.2% | 5.6% | 4.5% | 2.7% | 0.3% | 1.0% | — | — | — |
| FCF Yield | 10.7% | 10.9% | 9.4% | 7.8% | 14.0% | 4.9% | 2.2% | 3.5% | — | — | — |
| Buyback Yield | 1.0% | 1.0% | 0.0% | 1.6% | 3.0% | 0.9% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 1.0% | 1.0% | 0.0% | 1.6% | 3.0% | 0.9% | 0.0% | 0.5% | — | — | — |
| Shares Outstanding | — | $27M | $26M | $25M | $26M | $26M | $26M | $22M | $23M | $23M | $23M |
Reinsurance market capacity dependency
As reported in recent financial filings, Palomar’s P/B ratio of 3.68 suggests that investors are pricing the company as a high-growth specialty platform rather than a traditional insurer, reflecting confidence in its capital-light model and the recurring fee-based income generated by the PLMR-Front platform.
The current valuation multiple appears to command a significant premium over traditional P&C peers, which is justified by the company's ability to generate underwriting profit without the heavy capital requirements typical of the industry. Investors should monitor whether this valuation remains sustainable if the company's shift toward longer-tail casualty lines introduces unexpected reserve volatility.
Based on the provided quarterly data, Palomar maintained a combined ratio of 80.8% in 2026Q1, demonstrating that the company continues to generate significant underwriting profit even as it aggressively expands its footprint in non-traditional insurance lines and fee-based service offerings.
The trajectory of the combined ratio suggests that management has successfully maintained underwriting discipline despite the rapid scaling of the business. This performance indicates that the company's granular, data-driven pricing strategy remains effective at capturing profitable risk while ceding the most volatile catastrophe exposures to the reinsurance market.
According to the latest financial statements, Palomar’s D/E ratio remains exceptionally low at 0.31, indicating that the company is funding its rapid growth through retained earnings and fee-based income rather than debt, which provides a significant buffer against potential market-wide catastrophe events.
The company's reliance on reinsurance as a primary tool for managing catastrophe exposure effectively functions as a form of capital management, allowing it to maintain lower underwriting leverage than traditional balance-sheet-heavy carriers. This structural approach appears to provide the company with greater agility to pivot into new market segments without requiring frequent capital raises.
As indicated by the company's financial disclosures, the P/E ratio is a frequently misapplied metric for Palomar, as it fails to account for the volatility of catastrophe-exposed earnings and the significant impact of reinsurance ceding commissions on net income recognition.
Investors should prioritize the combined ratio and return on equity over P/E, as the latter can be distorted by episodic loss events and the timing of reinsurance recoveries. Relying on P/E may obscure the underlying quality of the company's fee-based income, which is less sensitive to catastrophe events than traditional underwriting premiums.
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Quick answers to the most common questions about buying PLMR stock.
Palomar Holdings, Inc.'s current P/E ratio is 19.8x. The historical average is 37.0x. This places it at the 33th percentile of its historical range.
Palomar Holdings, Inc.'s current EV/EBITDA is 14.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 24.2x.
Palomar Holdings, Inc.'s return on equity (ROE) is 23.6%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 13.2%.
Based on historical data, Palomar Holdings, Inc. is trading at a P/E of 19.8x. This is at the 33th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Palomar Holdings, Inc. has 73.9% gross margin and 28.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Palomar Holdings, Inc.'s Debt/EBITDA ratio is 0.0x, indicating low leverage. A ratio below 2x is generally considered financially healthy.