Latest Ratios: P/E Ratio 11.8x · EV/EBITDA 8.8x · ROE 20.7%. (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 | $7.7B | $6.5B | $5.6B | $4.4B | $4.9B | $4.8B | $4.5B | $5.5B | $5.0B | $4.6B | $3.9B |
| Enterprise Value | $7.8B | $6.6B | $6.0B | $4.9B | $5.4B | $5.3B | $5.1B | $6.0B | $4.8B | $5.1B | $4.4B |
| P/E Ratio → | 11.80 | 9.87 | 13.22 | 123.90 | 42.10 | 11.41 | 12.41 | 13.07 | 12.85 | 24.96 | 25.35 |
| P/S Ratio | 1.17 | 0.99 | 0.91 | 0.74 | 0.90 | 0.92 | 0.92 | 1.13 | 1.12 | 1.09 | 0.99 |
| P/B Ratio | 2.18 | 1.83 | 1.98 | 1.78 | 2.09 | 1.52 | 1.39 | 1.90 | 1.70 | 1.55 | 1.38 |
| P/FCF | 6.57 | 5.57 | 7.07 | 12.53 | 6.92 | 5.85 | 6.43 | 9.41 | 9.33 | 6.77 | 5.45 |
| P/OCF | 6.53 | 5.54 | 6.98 | 12.12 | 6.75 | 5.79 | 6.30 | 9.20 | 9.11 | 6.60 | 5.29 |
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 | — | 1.00 | 0.96 | 0.81 | 0.99 | 1.03 | 1.06 | 1.22 | 1.07 | 1.19 | 1.12 |
| EV / EBITDA | 8.77 | 7.46 | 11.09 | 102.33 | 34.13 | 9.89 | 11.05 | 11.01 | 15.56 | 15.66 | 45.87 |
| EV / EBIT | 9.22 | 7.46 | 10.45 | 64.50 | 30.07 | 9.58 | 10.61 | 10.70 | 14.59 | 14.96 | 37.78 |
| EV / FCF | — | 5.66 | 7.51 | 13.87 | 7.60 | 6.52 | 7.38 | 10.15 | 8.88 | 7.37 | 6.14 |
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 | 43.5% | 43.5% | 19.9% | 10.9% | 13.2% | 20.2% | 21.2% | 22.5% | 19.0% | 19.9% | 15.5% |
| Operating Margin | 12.8% | 12.8% | 8.7% | 0.7% | 2.7% | 10.1% | 9.2% | 10.7% | 6.3% | 6.9% | 1.7% |
| Net Profit Margin | 10.0% | 10.0% | 6.9% | 0.6% | 2.1% | 8.2% | 7.4% | 8.7% | 8.8% | 4.4% | 3.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 20.7% | 20.7% | 16.1% | 1.5% | 4.2% | 13.3% | 11.7% | 14.5% | 13.1% | 6.4% | 5.4% |
| ROA | 4.1% | 4.1% | 2.9% | 0.2% | 0.8% | 3.1% | 2.8% | 3.4% | 2.8% | 1.3% | 1.1% |
| ROIC | 18.5% | 18.5% | 13.2% | 1.1% | 3.3% | 10.3% | 9.2% | 12.9% | 6.9% | 6.5% | 1.5% |
| ROCE | 8.4% | 8.4% | 4.7% | 0.4% | 1.0% | 3.8% | 3.4% | 4.2% | 2.1% | 2.0% | 0.5% |
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 | 0.34 | 0.34 | 0.28 | 0.32 | 0.34 | 0.25 | 0.24 | 0.22 | 0.26 | 0.26 | 0.28 |
| Debt / EBITDA | 1.37 | 1.37 | 1.45 | 16.52 | 4.99 | 1.45 | 1.69 | 1.20 | 2.53 | 2.44 | 8.13 |
| Net Debt / Equity | — | 0.03 | 0.12 | 0.19 | 0.20 | 0.18 | 0.21 | 0.15 | -0.08 | 0.14 | 0.18 |
| Net Debt / EBITDA | 0.11 | 0.11 | 0.65 | 9.85 | 3.04 | 1.02 | 1.43 | 0.81 | -0.79 | 1.27 | 5.21 |
| Debt / FCF | — | 0.08 | 0.44 | 1.34 | 0.68 | 0.68 | 0.95 | 0.74 | -0.45 | 0.60 | 0.70 |
| Interest Coverage | 20.53 | 20.53 | 16.77 | 2.21 | 5.22 | 16.33 | 12.99 | 14.92 | 7.26 | 7.48 | 2.28 |
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 | 0.62 | 0.62 | 7.18 | 1.99 | 15.59 | 206.56 | — | — | — | — | — |
| Quick Ratio | 0.62 | 0.62 | 7.18 | 1.99 | 15.59 | 206.56 | — | — | — | — | — |
| Cash Ratio | 0.27 | 0.27 | 2.47 | 1.36 | 10.64 | 144.37 | — | — | 192.55 | 17.77 | 10.46 |
| Asset Turnover | — | 0.39 | 0.41 | 0.41 | 0.39 | 0.36 | 0.36 | 0.39 | 0.36 | 0.28 | 0.28 |
| 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 | 1.7% | 2.0% | 2.2% | 2.7% | 2.2% | 2.1% | 2.2% | 7.0% | 1.9% | 1.9% | 2.0% |
| Payout Ratio | 19.7% | 19.7% | 29.1% | 332.0% | 93.9% | 24.2% | 27.7% | 90.8% | 24.1% | 46.6% | 51.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.5% | 10.1% | 7.6% | 0.8% | 2.4% | 8.8% | 8.1% | 7.7% | 7.8% | 4.0% | 3.9% |
| FCF Yield | 15.2% | 17.9% | 14.1% | 8.0% | 14.4% | 17.1% | 15.6% | 10.6% | 10.7% | 14.8% | 18.4% |
| Buyback Yield | 1.7% | 2.0% | 0.5% | 0.0% | 0.6% | 3.4% | 4.8% | 10.2% | 1.1% | 0.8% | 2.7% |
| Total Shareholder Yield | 3.4% | 4.0% | 2.7% | 2.7% | 2.9% | 5.6% | 7.0% | 17.1% | 3.0% | 2.7% | 4.7% |
| Shares Outstanding | — | $36M | $36M | $36M | $36M | $36M | $38M | $41M | $43M | $43M | $43M |
Catastrophe-driven underwriting volatility
As reported in recent financial statements, The Hanover trades at a P/B of 2.13, which suggests that investors are pricing the firm at a premium to its book value, though this multiple remains notably lower than the 5.51x P/B commanded by high-performing peers like Erie Indemnity.
The current valuation appears to reflect a market perception of The Hanover as a solid mid-market player rather than a top-tier specialty insurer. This discount relative to peers like W. R. Berkley may indicate that investors are waiting for more consistent ROE performance before assigning a higher multiple to the franchise.
Based on the provided quarterly data, the combined ratio improved to 86.1% in 2026Q1, marking a significant recovery from the 96.7% peak observed in 2024Q2 and signaling that the company's underwriting discipline is effectively translating into superior margin expansion during the current hard market cycle.
The trajectory of the combined ratio suggests that management's focus on pruning underperforming lines and pushing rate increases is yielding tangible results. Investors should monitor whether this sub-90% level is sustainable or if it remains vulnerable to the secondary peril catastrophes that have historically pressured the loss ratio.
According to the balance sheet data, the company maintains a D/E ratio of 0.34, which, as noted in recent filings, suggests a very conservative capital structure that prioritizes solvency over the aggressive financial leverage often employed by more capital-intensive P&C competitors to boost their return on equity.
While this low leverage provides a fortress-like cushion against unexpected catastrophe losses, it may also be suppressing the company's ROE relative to peers who operate with higher debt loads. This suggests that management is prioritizing long-term stability and agency partner confidence over short-term capital efficiency.
As indicated by the historical volatility in quarterly earnings, the P/E ratio is frequently misapplied to The Hanover, as it obscures the impact of prior-year reserve development and catastrophe-driven loss spikes that can cause temporary, non-operational fluctuations in the company's reported net income figures.
Investors should instead focus on the combined ratio and the underlying attritional loss ratio to gauge true underwriting health. Relying on P/E multiples risks misinterpreting a one-time reserve release or a quiet weather quarter as a permanent improvement in the company's core profitability.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying THG stock.
The Hanover Insurance Group, Inc.'s current P/E ratio is 11.8x. The historical average is 24.3x. This places it at the 33th percentile of its historical range.
The Hanover Insurance Group, Inc.'s current EV/EBITDA is 8.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.4x.
The Hanover Insurance Group, Inc.'s return on equity (ROE) is 20.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 6.8%.
Based on historical data, The Hanover Insurance Group, Inc. is trading at a P/E of 11.8x. This is at the 33th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The Hanover Insurance Group, Inc.'s current dividend yield is 1.67% with a payout ratio of 19.7%.
The Hanover Insurance Group, Inc. has 43.5% gross margin and 12.8% operating margin. Operating margin between 10-20% is typical for established companies.
The Hanover Insurance Group, Inc.'s Debt/EBITDA ratio is 1.4x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.