Latest Ratios: P/E Ratio 11.2x · EV/EBITDA 8.9x · ROE 16.9%. (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 | $14.4B | $13.5B | $15.3B | $7.8B | $5.1B | $7.6B | $5.5B | $5.8B | $5.2B | $7.8B | $4.8B |
| Enterprise Value | $16.0B | $15.1B | $17.0B | $9.5B | $7.2B | $9.7B | $8.4B | $8.5B | $7.7B | $10.3B | $8.0B |
| P/E Ratio → | 11.24 | 10.00 | 9.76 | 5.72 | 3.95 | 9.08 | 12.44 | 9.87 | 6.94 | 14.52 | 12.59 |
| P/S Ratio | 1.31 | 1.23 | 1.41 | 0.79 | 0.49 | 0.86 | 0.78 | 0.81 | 0.73 | 1.34 | 0.93 |
| P/B Ratio | 1.83 | 1.63 | 1.99 | 1.15 | 0.84 | 1.42 | 1.13 | 1.14 | 1.09 | 1.72 | 1.14 |
| P/FCF | 13.99 | 13.12 | 16.37 | 6.58 | 5.55 | 6.12 | 6.18 | 16.61 | 9.04 | 8.38 | 40.12 |
| P/OCF | 12.91 | 12.10 | 15.18 | 6.20 | 5.15 | 5.81 | 5.50 | 13.31 | 8.62 | 8.13 | 32.46 |
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 | — | 1.38 | 1.57 | 0.95 | 0.70 | 1.11 | 1.18 | 1.17 | 1.08 | 1.77 | 1.54 |
| EV / EBITDA | 8.89 | 8.39 | 8.01 | 5.29 | 4.54 | 8.87 | 13.54 | 11.24 | 9.50 | 15.38 | 15.53 |
| EV / EBIT | 9.31 | 8.48 | 8.33 | 5.53 | 4.78 | 9.53 | 13.80 | 11.70 | 8.25 | 15.79 | 16.00 |
| EV / FCF | — | 14.74 | 18.14 | 7.99 | 7.87 | 7.87 | 9.33 | 24.13 | 13.42 | 11.08 | 66.23 |
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 | 26.0% | 26.0% | 27.9% | 26.4% | 24.2% | 22.1% | 20.0% | 19.6% | 20.6% | 21.5% | 19.8% |
| Operating Margin | 15.7% | 15.7% | 18.8% | 17.3% | 14.7% | 11.6% | 7.8% | 9.4% | 11.0% | 11.1% | 9.5% |
| Net Profit Margin | 12.3% | 12.3% | 14.5% | 13.7% | 12.5% | 9.5% | 6.3% | 8.2% | 10.5% | 9.2% | 7.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 16.9% | 16.9% | 21.7% | 21.4% | 22.6% | 16.2% | 8.9% | 11.9% | 16.1% | 12.2% | 9.0% |
| ROA | 9.7% | 9.7% | 12.1% | 11.1% | 10.8% | 7.4% | 4.1% | 5.6% | 7.6% | 5.6% | 4.0% |
| ROIC | 13.4% | 13.4% | 17.2% | 15.5% | 14.5% | 10.0% | 5.3% | 6.8% | 8.2% | 6.7% | 5.1% |
| ROCE | 15.5% | 15.5% | 19.6% | 17.5% | 15.9% | 11.0% | 6.0% | 7.6% | 9.5% | 8.0% | 6.0% |
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 | 0.35 | 0.35 | 0.39 | 0.44 | 0.58 | 0.71 | 0.85 | 0.77 | 0.78 | 0.71 | 0.89 |
| Debt / EBITDA | 1.62 | 1.62 | 1.40 | 1.66 | 2.19 | 3.46 | 6.80 | 5.21 | 4.56 | 4.80 | 7.36 |
| Net Debt / Equity | — | 0.20 | 0.22 | 0.25 | 0.35 | 0.40 | 0.58 | 0.51 | 0.53 | 0.55 | 0.74 |
| Net Debt / EBITDA | 0.92 | 0.92 | 0.78 | 0.94 | 1.34 | 1.97 | 4.58 | 3.50 | 3.10 | 3.74 | 6.12 |
| Debt / FCF | — | 1.61 | 1.77 | 1.41 | 2.32 | 1.74 | 3.16 | 7.51 | 4.38 | 2.69 | 26.11 |
| Interest Coverage | — | — | — | — | — | — | 249.03 | — | — | — | — |
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 | 4.17 | 4.17 | 4.61 | 4.28 | 4.12 | 4.40 | 5.22 | 6.07 | 5.78 | 5.56 | 5.50 |
| Quick Ratio | 0.59 | 0.59 | 0.74 | 0.68 | 0.73 | 0.93 | 1.05 | 1.17 | 1.08 | 0.83 | 0.87 |
| Cash Ratio | 0.41 | 0.41 | 0.52 | 0.52 | 0.52 | 0.72 | 0.75 | 0.80 | 0.73 | 0.46 | 0.40 |
| Asset Turnover | — | 0.76 | 0.81 | 0.80 | 0.84 | 0.76 | 0.64 | 0.67 | 0.70 | 0.62 | 0.53 |
| Inventory Turnover | 0.73 | 0.73 | 0.81 | 0.81 | 0.89 | 0.87 | 0.74 | 0.74 | 0.75 | 0.63 | 0.56 |
| Days Sales Outstanding | — | 5.26 | 5.07 | 4.97 | 3.64 | 3.50 | 9.75 | 11.91 | 11.41 | 15.89 | 17.75 |
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 | 0.6% | 0.7% | 0.6% | 1.2% | 1.7% | 1.0% | 1.0% | 1.1% | 1.2% | 0.5% | — |
| Payout Ratio | 7.2% | 7.2% | 5.9% | 6.6% | 6.9% | 9.2% | 12.7% | 10.8% | 8.2% | 7.2% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.9% | 10.0% | 10.2% | 17.5% | 25.3% | 11.0% | 8.0% | 10.1% | 14.4% | 6.9% | 7.9% |
| FCF Yield | 7.1% | 7.6% | 6.1% | 15.2% | 18.0% | 16.3% | 16.2% | 6.0% | 11.1% | 11.9% | 2.5% |
| Buyback Yield | 4.5% | 4.8% | 4.1% | 7.2% | 10.7% | 5.0% | 11.4% | 4.0% | 9.7% | 3.7% | 8.1% |
| Total Shareholder Yield | 5.2% | 5.6% | 4.7% | 8.3% | 12.4% | 6.0% | 12.4% | 5.1% | 10.9% | 4.2% | 8.1% |
| Shares Outstanding | — | $100M | $105M | $111M | $118M | $126M | $131M | $147M | $154M | $169M | $176M |
Cyclical land bank exposure
According to recent market data, Toll Brothers trades at a P/E of 12.16, which, when compared to the broader sector, suggests that investors are pricing in a significant degree of cyclical risk despite the company's premium positioning within the luxury residential construction market segment.
The current forward P/E of 12.83 indicates that the market expects earnings to remain relatively flat or face slight pressure in the near term. This valuation appears to discount the company's brand equity, likely due to concerns regarding the sensitivity of move-up buyers to prevailing interest rate environments.
Based on reported financial figures, ROIC has trended downward from a peak of 5.1% in 2024Q2 to 2.6% in 2026Q2, signaling that the company is struggling to maintain its historical ability to compound returns on its substantial land-heavy capital base during this period of market normalization.
The decline in ROIC suggests that the capital intensity required to maintain the luxury land bank is currently outpacing the incremental returns generated by home deliveries. Investors should monitor whether this trend reflects a structural shift in project profitability or merely a temporary lag in the conversion of long-dated assets.
As reported in recent financial statements, the company's days inventory outstanding (DIO) reached 522 days in 2026Q2, a metric that highlights the inherent inefficiency of a land-heavy model when compared to the rapid asset turnover strategies employed by more volume-oriented peers in the residential construction industry.
The extended DIO reflects the long lead times required for luxury home development and the strategic decision to hold land parcels for extended periods. This lack of agility may leave the company vulnerable to sudden shifts in market demand, as capital remains locked in inventory for nearly eighteen months.
Financial data indicates that Toll Brothers' ROIC of 2.6% significantly lags behind peers like NVR, Inc., which reports an ROIC of 43.8%, illustrating the stark contrast between Toll's land-ownership strategy and the asset-light land option models that dominate the most efficient segments of the homebuilding sector.
While Toll Brothers maintains a healthy balance sheet, the gap in capital efficiency compared to peers suggests that the company's moat is built on product differentiation rather than operational speed. This structural difference warrants a cautious approach when comparing valuation multiples across the broader homebuilding peer group.
The Price-to-Book (P/B) ratio is frequently misapplied to Toll Brothers, as it fails to account for the significant market-to-cost discrepancy inherent in the company's long-dated land bank, which often carries historical cost values that do not reflect current market appreciation or potential impairment risks.
Investors should instead focus on metrics like Return on Invested Capital (ROIC) or adjusted book value, which better capture the economic reality of the company's land holdings. Relying on P/B may lead to an inaccurate assessment of the company's true asset value and its ability to generate future earnings.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying TOL stock.
Toll Brothers, Inc.'s current P/E ratio is 11.2x. The historical average is 16.6x. This places it at the 63th percentile of its historical range.
Toll Brothers, Inc.'s current EV/EBITDA is 8.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.3x.
Toll Brothers, Inc.'s return on equity (ROE) is 16.9%. The historical average is 13.6%.
Based on historical data, Toll Brothers, Inc. is trading at a P/E of 11.2x. This is at the 63th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Toll Brothers, Inc.'s current dividend yield is 0.64% with a payout ratio of 7.2%.
Toll Brothers, Inc. has 26.0% gross margin and 15.7% operating margin. Operating margin between 10-20% is typical for established companies.
Toll Brothers, Inc.'s Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.