Latest Ratios: P/E Ratio 28.4x · EV/EBITDA 7.7x · ROE 11.3%. (2018–2025 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 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $891M | $1.2B | $1.2B | $151M | $63M | $773M | $3.9B | — | — |
| Enterprise Value | $403M | $754M | $829M | $-229488000 | $-401191000 | $80M | $3.0B | — | — |
| P/E Ratio → | 28.39 | 32.25 | 39.67 | — | — | — | — | — | — |
| P/S Ratio | 0.59 | 0.82 | 1.04 | 0.33 | 0.20 | 2.24 | 11.32 | — | — |
| P/B Ratio | 2.76 | 3.13 | 3.89 | 0.54 | 0.16 | 1.19 | 3.80 | — | — |
| P/FCF | 4.63 | 6.46 | 6.67 | — | — | — | — | — | — |
| P/OCF | 4.32 | 6.02 | 6.27 | — | — | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.50 | 0.70 | -0.50 | -1.29 | 0.23 | 8.62 | — | — |
| EV / EBITDA | 7.66 | 14.33 | 18.10 | — | — | — | — | — | — |
| EV / EBIT | 9.87 | 12.20 | 11.34 | — | — | — | — | — | — |
| EV / FCF | — | 3.92 | 4.51 | — | — | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 25.5% | 25.5% | 28.7% | 16.7% | -10.4% | -15.0% | -4.1% | -28.8% | -24.0% |
| Operating Margin | 2.7% | 2.7% | 2.6% | -32.4% | -95.8% | -150.9% | -104.7% | -97.3% | -159.6% |
| Net Profit Margin | 2.7% | 2.7% | 2.6% | -32.4% | -95.8% | -150.9% | -104.7% | -97.3% | -159.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.3% | 11.3% | 10.4% | -44.2% | -57.4% | -62.0% | -59.6% | -206.7% | -79.5% |
| ROA | 2.8% | 2.8% | 2.5% | -13.0% | -27.6% | -40.3% | -32.8% | -64.7% | -36.9% |
| ROIC | — | — | — | — | — | -1500.3% | -943.7% | — | — |
| ROCE | 3.8% | 3.8% | 3.2% | -15.0% | -29.7% | -44.1% | -39.5% | -92.4% | -45.3% |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.51 | 0.51 | 0.64 | 1.08 | 0.77 | 0.02 | 0.17 | 1.03 | 0.17 |
| Debt / EBITDA | 3.83 | 3.83 | 4.42 | — | — | — | — | — | — |
| Net Debt / Equity | — | -1.23 | -1.26 | -1.37 | -1.19 | -1.07 | -0.91 | -1.21 | -1.24 |
| Net Debt / EBITDA | -9.29 | -9.29 | -8.69 | — | — | — | — | — | — |
| Debt / FCF | — | -2.54 | -2.16 | — | — | — | — | — | — |
| Interest Coverage | 2.94 | 2.94 | 1.73 | -2.20 | -7.60 | -25.05 | -3.67 | -11.66 | -75.78 |
Net cash position: cash ($690M) exceeds total debt ($201M)
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 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.62 | 2.62 | 2.74 | 3.89 | 13.36 | 10.23 | 8.65 | 2.37 | 4.56 |
| Quick Ratio | 2.62 | 2.62 | 2.74 | 3.89 | 13.36 | 10.23 | 8.65 | 2.37 | 4.56 |
| Cash Ratio | 1.77 | 1.77 | 1.81 | 2.85 | 11.65 | 8.46 | 7.75 | 1.83 | 3.54 |
| Asset Turnover | — | 0.99 | 0.89 | 0.39 | 0.29 | 0.32 | 0.23 | 0.42 | 0.23 |
| 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 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.5% | 3.1% | 2.5% | — | — | — | — | — | — |
| FCF Yield | 21.6% | 15.5% | 15.0% | — | — | — | — | — | — |
| 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 | — | $17M | $17M | $14M | $14M | $14M | $14M | $14M | $2M |
Embedded channel partner concentration
As reported in recent financial filings, Root achieved a combined ratio of 90.8% in 2026Q1, signaling a successful transition toward sustainable underwriting profitability after consistently exceeding the 100% threshold throughout the 2024 and 2025 fiscal periods, according to the company's quarterly performance data.
The improvement in the combined ratio appears driven by a significant reduction in the loss ratio, which fell to 57.5% in 2026Q1 from a peak of 79.0% in 2025Q3. This suggests that the company's telematics-based risk selection is effectively filtering out high-severity claims, though investors should monitor whether this trend remains resilient against broader inflationary pressures in the automotive repair sector.
Based on current market data, Root trades at a P/B ratio of 2.42, which reflects a significant premium over its historical valuation range and suggests that investors are increasingly pricing the firm as a maturing insurance carrier rather than a speculative technology startup, per recent trading figures.
The current P/B multiple warrants further investigation as it implies high expectations for future ROE expansion. If the company can maintain its recent shift toward positive underwriting margins, this valuation may be justified, but any reversion to historical loss-heavy performance could lead to a rapid contraction in the multiple.
According to quarterly financial statements, Root's ROE has improved to 9.9% in 2026Q1, marking a sharp recovery from the negative returns observed in 2024, which suggests that the company's pivot toward disciplined underwriting is finally beginning to outweigh the costs of its initial growth phase.
The return to positive ROE appears to be primarily fueled by the underwriting margin of 9.2% achieved in the most recent quarter. This indicates that the business is successfully generating profit from its core insurance operations rather than relying solely on investment income, which may provide a more stable foundation for long-term shareholder value creation.
While the market frequently utilizes P/E ratios to evaluate Root, this metric is often misapplied to insurance carriers because it fails to account for the volatility of loss reserves and the cyclical nature of underwriting results, as evidenced by the company's recent transition from losses to profitability.
Investors should prioritize the combined ratio and book value growth over P/E multiples, as the latter can be distorted by one-time reserve releases or accounting adjustments. Relying on P/E in an insurance context obscures the underlying quality of the risk pool and the sustainability of the underwriting engine, which are the true drivers of long-term solvency and performance.
Includes 30+ ratios · 8 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying ROOT stock.
Root, Inc.'s current P/E ratio is 28.4x. The historical average is 36.0x.
Root, Inc.'s current EV/EBITDA is 7.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.2x.
Root, Inc.'s return on equity (ROE) is 11.3%. The historical average is -61.0%.
Based on historical data, Root, Inc. is trading at a P/E of 28.4x. Compare with industry peers and growth rates for a complete picture.
Root, Inc. has 25.5% gross margin and 2.7% operating margin.
Root, Inc.'s Debt/EBITDA ratio is 3.8x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.