Latest Ratios: P/E Ratio 9.2x · EV/EBITDA 7.8x · ROE 12.4%. (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 | $5.2B | $5.0B | $4.9B | $4.6B | $3.3B | $4.0B | $4.0B | $5.3B | $3.6B | $4.5B | $4.1B |
| Enterprise Value | $6.3B | $6.1B | $7.2B | $6.1B | $4.8B | $5.4B | $5.5B | $6.2B | $4.6B | $5.5B | $5.1B |
| P/E Ratio → | 9.16 | 8.69 | 8.09 | 7.57 | 4.38 | 6.69 | 10.13 | 7.86 | 5.91 | 37.47 | 13.12 |
| P/S Ratio | 4.15 | 3.98 | 3.79 | 3.69 | 2.73 | 3.02 | 2.77 | 3.47 | 2.81 | 3.72 | 3.33 |
| P/B Ratio | 1.09 | 1.04 | 1.06 | 1.04 | 0.83 | 0.94 | 0.93 | 1.31 | 1.02 | 1.51 | 1.44 |
| P/FCF | 15.36 | 14.76 | — | 8.91 | 8.78 | 7.38 | 6.21 | 7.94 | 5.49 | 13.69 | 11.91 |
| P/OCF | 15.17 | 14.57 | — | 8.64 | 8.38 | 7.22 | 6.05 | 7.62 | 5.28 | 12.60 | 10.80 |
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 | — | 4.87 | 5.58 | 4.95 | 4.00 | 4.09 | 3.80 | 4.07 | 3.61 | 4.49 | 4.15 |
| EV / EBITDA | 7.78 | 7.53 | 8.47 | 7.16 | 4.63 | 6.46 | 9.94 | 6.75 | 6.10 | 12.69 | 9.27 |
| EV / EBIT | 8.22 | 7.33 | 8.22 | 7.16 | 4.60 | 6.39 | 9.95 | 6.87 | 6.16 | 13.40 | 9.10 |
| EV / FCF | — | 18.04 | — | 11.96 | 12.86 | 9.97 | 8.54 | 9.33 | 7.05 | 16.54 | 14.85 |
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 | 92.3% | 92.3% | 95.1% | 98.3% | 119.5% | 88.4% | 58.2% | 82.6% | 82.1% | 78.4% | 72.5% |
| Operating Margin | 61.2% | 61.2% | 59.8% | 61.9% | 80.0% | 57.5% | 33.3% | 55.6% | 53.7% | 28.4% | 39.1% |
| Net Profit Margin | 46.7% | 46.7% | 46.8% | 48.6% | 62.4% | 45.2% | 27.3% | 44.0% | 47.6% | 9.9% | 24.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 12.4% | 12.4% | 13.4% | 14.5% | 18.2% | 14.1% | 9.4% | 17.8% | 18.7% | 4.1% | 11.5% |
| ROA | 6.9% | 6.9% | 7.4% | 8.2% | 10.0% | 7.6% | 5.3% | 10.2% | 9.9% | 2.1% | 5.4% |
| ROIC | 8.9% | 8.9% | 9.0% | 10.1% | 12.9% | 10.0% | 6.7% | 13.4% | 12.1% | 6.6% | 9.6% |
| ROCE | 10.2% | 10.2% | 10.3% | 12.1% | 13.8% | 10.2% | 6.9% | 13.7% | 11.8% | 6.1% | 8.5% |
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 | 0.24 | 0.24 | 0.51 | 0.36 | 0.40 | 0.37 | 0.37 | 0.25 | 0.32 | 0.34 | 0.37 |
| Debt / EBITDA | 1.40 | 1.40 | 2.76 | 1.85 | 1.52 | 1.86 | 2.87 | 1.11 | 1.48 | 2.37 | 1.93 |
| Net Debt / Equity | — | 0.23 | 0.50 | 0.36 | 0.39 | 0.33 | 0.35 | 0.23 | 0.29 | 0.32 | 0.35 |
| Net Debt / EBITDA | 1.37 | 1.37 | 2.71 | 1.83 | 1.47 | 1.68 | 2.71 | 1.01 | 1.35 | 2.19 | 1.83 |
| Debt / FCF | — | 3.29 | — | 3.05 | 4.08 | 2.59 | 2.33 | 1.39 | 1.56 | 2.85 | 2.94 |
| Interest Coverage | 12.64 | 12.64 | 8.43 | 9.56 | 12.28 | 10.06 | 7.74 | 16.08 | 12.13 | 6.52 | 6.96 |
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 | 4.28 | 4.28 | 42.96 | 5.78 | 8.63 | 19.79 | 17.45 | 15.16 | 16.19 | 15.33 | 23.95 |
| Quick Ratio | 4.28 | 4.28 | 42.96 | 5.78 | 8.63 | 19.79 | 17.45 | 15.16 | 16.19 | 15.33 | 23.95 |
| Cash Ratio | 3.40 | 3.40 | 35.64 | 4.94 | 7.43 | 17.66 | 15.79 | 13.60 | 14.46 | 13.71 | 22.04 |
| Asset Turnover | — | 0.15 | 0.15 | 0.16 | 0.17 | 0.17 | 0.18 | 0.22 | 0.20 | 0.21 | 0.21 |
| 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% | 2.9% | 3.1% | 3.2% | 4.2% | 2.6% | 2.4% | 0.0% | 0.1% | 0.0% | 0.1% |
| Payout Ratio | 25.0% | 25.0% | 25.1% | 24.2% | 18.2% | 17.2% | 24.8% | 0.3% | 0.4% | 1.8% | 0.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 10.9% | 11.5% | 12.4% | 13.2% | 22.8% | 15.0% | 9.9% | 12.7% | 16.9% | 2.7% | 7.6% |
| FCF Yield | 6.5% | 6.8% | — | 11.2% | 11.4% | 13.5% | 16.1% | 12.6% | 18.2% | 7.3% | 8.4% |
| Buyback Yield | 8.4% | 8.7% | 4.6% | 2.9% | 12.3% | 9.9% | 5.7% | 5.7% | 1.4% | 0.0% | 2.4% |
| Total Shareholder Yield | 11.1% | 11.6% | 7.7% | 6.1% | 16.5% | 12.5% | 8.1% | 5.7% | 1.5% | 0.0% | 2.5% |
| Shares Outstanding | — | $138M | $154M | $160M | $171M | $190M | $197M | $210M | $219M | $220M | $229M |
Housing market cyclicality
Based on current market data, Radian trades at a P/B of 1.08, which appears to discount the company relative to its peer group average, suggesting that investors remain cautious about the long-term sustainability of mortgage insurance premiums in a high-interest-rate environment that suppresses new insurance written.
The current P/B multiple of 1.08 indicates that the market is not fully pricing in the franchise value of Radian's existing insurance-in-force book. This valuation gap may imply that investors are prioritizing the immediate decline in new originations over the long-term, annuity-like cash flows generated by the legacy portfolio.
As reported in quarterly financial filings, Radian has maintained a combined ratio consistently below the 100% threshold, with a recent peak of 62.8% in 2026Q1, demonstrating a strong ability to generate underwriting profit despite the inherent volatility of loss provisions in the mortgage insurance sector.
The company's ability to keep the combined ratio well below the break-even point suggests disciplined risk selection and effective pricing strategies. However, the recent uptick in the loss ratio warrants further investigation to determine if this reflects a structural shift in credit quality or merely temporary noise from reserve adjustments.
According to the provided financial statements, Radian maintains a debt-to-equity ratio of 0.24%, which indicates a highly conservative capital structure that provides the company with significant financial flexibility to navigate housing market cycles while continuing to return capital to shareholders through buybacks and dividends.
This low leverage profile is a key differentiator for Radian, as it provides a substantial buffer against potential credit deterioration. Investors should monitor whether this capital-light approach remains sustainable if the company continues to face top-line contraction in its core mortgage segment.
Based on an analysis of insurance-specific KPIs, the P/E ratio is frequently misapplied to Radian, as it fails to account for the significant non-cash volatility inherent in loss provisions and reserve releases that can artificially inflate or deflate reported net income on a quarterly basis.
Relying on P/E ignores the underlying underwriting performance and the compounding nature of the insurance-in-force book. Analysts should instead focus on the combined ratio and the trajectory of book value per share to better assess the company's true economic value and long-term profitability potential.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying RDN stock.
Radian Group Inc.'s current P/E ratio is 9.2x. The historical average is 10.7x. This places it at the 46th percentile of its historical range.
Radian Group Inc.'s current EV/EBITDA is 7.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.5x.
Radian Group Inc.'s return on equity (ROE) is 12.4%. The historical average is 5.8%.
Based on historical data, Radian Group Inc. is trading at a P/E of 9.2x. This is at the 46th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Radian Group Inc.'s current dividend yield is 2.78% with a payout ratio of 25.0%.
Radian Group Inc. has 92.3% gross margin and 61.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Radian Group Inc.'s Debt/EBITDA ratio is 1.4x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.