Latest Ratios: P/E Ratio 12.5x · EV/EBITDA 9.6x · 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 | $72.8B | $66.0B | $55.7B | $44.2B | $44.9B | $39.2B | $35.7B | $35.9B | $32.3B | $37.8B | $35.6B |
| Enterprise Value | $81.3B | $74.6B | $63.1B | $51.6B | $51.4B | $45.8B | $41.6B | $42.0B | $38.5B | $44.0B | $41.8B |
| P/E Ratio → | 12.48 | 10.57 | 11.22 | 14.89 | 15.93 | 10.80 | 13.34 | 13.81 | 12.81 | 18.50 | 11.91 |
| P/S Ratio | 1.49 | 1.35 | 1.20 | 1.07 | 1.22 | 1.13 | 1.12 | 1.14 | 1.07 | 1.31 | 1.29 |
| P/B Ratio | 2.37 | 2.01 | 2.00 | 1.77 | 2.08 | 1.36 | 1.22 | 1.38 | 1.41 | 1.59 | 1.53 |
| P/FCF | 6.86 | 6.22 | 6.14 | 5.74 | 6.95 | 5.39 | 5.48 | 6.90 | 7.38 | 9.11 | 7.97 |
| P/OCF | 6.86 | 6.22 | 6.14 | 5.74 | 6.95 | 5.39 | 5.48 | 6.90 | 7.38 | 9.11 | 7.97 |
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 | — | 1.53 | 1.36 | 1.25 | 1.39 | 1.31 | 1.30 | 1.33 | 1.27 | 1.52 | 1.51 |
| EV / EBITDA | 9.60 | 8.80 | 9.16 | 12.61 | 12.30 | 8.59 | 10.32 | 10.76 | 10.23 | 12.42 | 8.56 |
| EV / EBIT | 10.43 | 9.07 | 9.61 | 13.77 | 13.88 | 9.54 | 11.62 | 12.06 | 11.62 | 14.20 | 9.46 |
| EV / FCF | — | 7.03 | 6.96 | 6.69 | 7.96 | 6.29 | 6.38 | 8.07 | 8.79 | 10.61 | 9.34 |
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 | 44.3% | 44.3% | 26.7% | 21.6% | 23.1% | 27.2% | 25.3% | 24.8% | 25.1% | 25.2% | 31.0% |
| Operating Margin | 16.0% | 16.0% | 13.3% | 8.1% | 9.1% | 12.8% | 10.1% | 9.9% | 9.8% | 9.4% | 14.7% |
| Net Profit Margin | 12.9% | 12.9% | 10.8% | 7.2% | 7.7% | 10.5% | 8.4% | 8.3% | 8.3% | 7.1% | 10.9% |
| 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% | 18.9% | 12.9% | 11.3% | 12.6% | 9.8% | 10.7% | 10.8% | 8.8% | 12.9% |
| ROA | 4.5% | 4.5% | 3.9% | 2.5% | 2.4% | 3.1% | 2.4% | 2.4% | 2.4% | 2.0% | 3.0% |
| ROIC | 15.2% | 15.2% | 13.7% | 8.4% | 7.9% | 9.5% | 7.2% | 7.7% | 7.5% | 6.9% | 10.3% |
| ROCE | 16.5% | 16.5% | 14.3% | 8.6% | 8.7% | 5.8% | 3.0% | 2.9% | 3.0% | 2.8% | 4.3% |
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 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.28 | 0.28 | 0.29 | 0.32 | 0.34 | 0.25 | 0.22 | 0.25 | 0.29 | 0.28 | 0.28 |
| Debt / EBITDA | 1.09 | 1.09 | 1.17 | 1.96 | 1.74 | 1.37 | 1.63 | 1.68 | 1.74 | 1.85 | 1.32 |
| Net Debt / Equity | — | 0.26 | 0.27 | 0.30 | 0.30 | 0.23 | 0.20 | 0.23 | 0.27 | 0.26 | 0.26 |
| Net Debt / EBITDA | 1.01 | 1.01 | 1.08 | 1.80 | 1.55 | 1.23 | 1.45 | 1.55 | 1.64 | 1.76 | 1.26 |
| Debt / FCF | — | 0.81 | 0.82 | 0.96 | 1.00 | 0.90 | 0.89 | 1.17 | 1.41 | 1.50 | 1.37 |
| Interest Coverage | 19.34 | 19.34 | 16.77 | 9.97 | 10.56 | 14.11 | 10.55 | 10.12 | 9.41 | 8.40 | 12.17 |
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 | 0.55 | 0.55 | 1.26 | 1.41 | 1.22 | 1.35 | — | — | — | — | — |
| Quick Ratio | 0.55 | 0.55 | 1.26 | 1.41 | 1.22 | 1.35 | — | — | — | — | — |
| Cash Ratio | 0.28 | 0.28 | 0.99 | 1.08 | 0.94 | 1.07 | 17.38 | — | 11.95 | 12.03 | 12.09 |
| Asset Turnover | — | 0.34 | 0.35 | 0.33 | 0.32 | 0.29 | 0.27 | 0.29 | 0.29 | 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 | 1.3% | 1.5% | 1.7% | 2.1% | 1.9% | 2.2% | 2.4% | 2.3% | 2.5% | 2.1% | 2.1% |
| Payout Ratio | 15.6% | 15.6% | 19.0% | 30.4% | 30.8% | 23.7% | 31.9% | 32.2% | 32.3% | 38.2% | 25.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.0% | 9.5% | 8.9% | 6.7% | 6.3% | 9.3% | 7.5% | 7.2% | 7.8% | 5.4% | 8.4% |
| FCF Yield | 14.6% | 16.1% | 16.3% | 17.4% | 14.4% | 18.5% | 18.2% | 14.5% | 13.6% | 11.0% | 12.5% |
| Buyback Yield | 4.3% | 4.7% | 2.0% | 2.3% | 4.6% | 5.6% | 1.9% | 4.3% | 4.1% | 3.8% | 6.9% |
| Total Shareholder Yield | 5.6% | 6.2% | 3.7% | 4.4% | 6.5% | 7.8% | 4.3% | 6.7% | 6.6% | 5.9% | 9.1% |
| Shares Outstanding | — | $228M | $231M | $232M | $240M | $251M | $255M | $262M | $270M | $279M | $291M |
Severe convective storm frequency
According to recent market data, TRV trades at a P/B of 2.27, which suggests investors assign a premium valuation to the company's consistent ability to generate mid-teens ROE despite the inherent volatility of the property and casualty insurance underwriting cycle.
The current P/B multiple appears to reflect the market's confidence in TRV's proprietary data analytics and its entrenched position within the independent agency channel. While this valuation sits above several peers, it may be justified by the company's historical success in maintaining underwriting discipline during periods of industry-wide catastrophe stress.
Based on quarterly filings, the combined ratio has fluctuated between 75.0% and 96.0% over the last ten quarters, indicating that while TRV maintains a strong underwriting core, its profitability remains highly sensitive to the increasing frequency of severe convective storms and seasonal weather events.
The trajectory of the combined ratio suggests that management's pricing actions are largely effective at offsetting loss cost inflation, though the 2025Q1 spike to 96.0% serves as a reminder of the company's exposure to non-hurricane catastrophe losses. Investors should monitor whether the underlying loss ratio can stabilize as the company continues to refine its risk selection models.
As reported in financial statements, TRV's ROE has shown significant quarterly variance, ranging from 1.4% to 7.7%, which highlights the company's reliance on both underwriting margins and investment income to sustain its long-term return targets in a shifting interest rate environment.
The decomposition of ROE suggests that while underwriting profit remains the primary engine, the contribution from net investment income has become increasingly vital as a stabilizer. The company's ability to maintain a mid-teens ROE across cycles appears contingent on its capacity to reinvest float into higher-yielding fixed-income assets while keeping loss ratios within target bands.
As noted in industry research, the P/E ratio is frequently misapplied to TRV, as it fails to account for the significant impact of non-cash reserve development and catastrophe-related earnings volatility that can distort short-term profitability metrics for P&C insurers.
Investors should prioritize the combined ratio and P/B as more reliable indicators of long-term value, as the P/E ratio often obscures the underlying health of the insurance float. Relying on P/E may lead to an incomplete assessment of the company's true earnings power, particularly when reserve releases or unexpected catastrophe losses create temporary noise in the income statement.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying TRV stock.
The Travelers Companies, Inc.'s current P/E ratio is 12.5x. The historical average is 16.5x. This places it at the 59th percentile of its historical range.
The Travelers Companies, Inc.'s current EV/EBITDA is 9.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.9x.
The Travelers Companies, 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 11.3%.
Based on historical data, The Travelers Companies, Inc. is trading at a P/E of 12.5x. This is at the 59th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The Travelers Companies, Inc.'s current dividend yield is 1.26% with a payout ratio of 15.6%.
The Travelers Companies, Inc. has 44.3% gross margin and 16.0% operating margin. Operating margin between 10-20% is typical for established companies.
The Travelers Companies, Inc.'s Debt/EBITDA ratio is 1.1x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.