Arch Capital Group Ltd. (ACGL) Financial Ratios
30 years of historical data (1996–2025) · Financial Services · Insurance - Diversified
EV/EBITDA
↓
6.62
↓-37% vs avg
5yr avg: 10.53
30Y Low5.1·High83.8
P/FCF
↑
5.30
-4% vs avg
5yr avg: 5.54
30Y Low1.6·High75.5
P/B Ratio
↑
1.42
-10% vs avg
5yr avg: 1.57
30Y Low0.4·High1.8
ROE
↑
19.5%
↓+1% vs avg
5yr avg: 19.4%
30Y Low-9%·High28%
Debt/EBITDA
↓
0.53
↓-50% vs avg
5yr avg: 1.06
30Y Low0.3·High3.4
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
ACGL Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Arch Capital Group Ltd. trades at 7.8x earnings, 18% below its 5-year average of 9.6x, sitting at the 18th percentile of its historical range. Compared to the Financial Services sector median P/E of 13.6x, the stock trades at a discount of 42%. On a free-cash-flow basis, the stock trades at 5.3x P/FCF, roughly in line with the 5-year average of 5.5x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $32.5B | $36.1B | $35.3B | $28.1B | $23.7B | $17.8B | $14.8B | $17.7B | $11.0B | $12.6B | $10.8B |
| Enterprise Value | $34.2B | $37.8B | $37.0B | $29.9B | $25.6B | $19.7B | $16.9B | $19.3B | $12.6B | $14.6B | $12.4B |
| P/E Ratio → | 7.85 | 8.25 | 8.25 | 6.39 | 16.52 | 8.50 | 10.86 | 11.08 | 14.52 | 22.25 | 16.16 |
| P/S Ratio | 1.63 | 1.81 | 2.02 | 2.12 | 2.45 | 1.99 | 1.78 | 2.60 | 2.02 | 2.35 | 2.42 |
| P/B Ratio | 1.42 | 1.49 | 1.69 | 1.53 | 1.83 | 1.31 | 1.06 | 1.43 | 1.06 | 1.23 | 1.16 |
| P/FCF | 5.30 | 5.89 | 5.32 | 4.94 | 6.30 | 5.26 | 5.20 | 8.78 | 7.21 | 11.60 | 7.79 |
| P/OCF | 5.26 | 5.85 | 5.28 | 4.89 | 6.21 | 5.19 | 5.13 | 8.62 | 7.08 | 11.36 | 7.70 |
P/E links to full P/E history page with 30-year chart
ACGL EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Arch Capital Group Ltd.'s enterprise value stands at 6.6x EBITDA, 37% below its 5-year average of 10.5x. The Financial Services sector median is 11.4x, placing the stock at a 42% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.90 | 2.12 | 2.25 | 2.65 | 2.20 | 2.04 | 2.84 | 2.30 | 2.72 | 2.79 |
| EV / EBITDA | 6.62 | 7.31 | 7.86 | 9.35 | 17.30 | 10.81 | 11.40 | 10.68 | 13.94 | 19.69 | 15.01 |
| EV / EBIT | 6.87 | 7.33 | 8.02 | 8.51 | 15.81 | 8.77 | 9.92 | 9.80 | 13.07 | 16.67 | 13.46 |
| EV / FCF | — | 6.17 | 5.59 | 5.26 | 6.80 | 5.81 | 5.94 | 9.59 | 8.22 | 13.38 | 8.98 |
ACGL Profitability
Margins and return-on-capital ratios measuring operating efficiency
Arch Capital Group Ltd. earns an operating margin of 25.0%, above the Financial Services sector average of 20.3%. Operating margins have expanded from 23.4% to 25.0% over the past 3 years, signaling improving operational efficiency. ROE of 19.5% indicates solid capital efficiency, compared to the sector median of 9.0%. ROIC of 15.4% represents solid returns on invested capital versus a sector median of 5.5%.
Margins
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 | 37.2% | 37.2% | 37.0% | 35.6% | 29.9% | 34.0% | 31.3% | 41.4% | 32.5% | 30.3% | 35.9% |
| Operating Margin | 25.0% | 25.0% | 25.7% | 23.4% | 14.2% | 19.5% | 17.1% | 25.4% | 14.5% | 11.5% | 18.1% |
| Net Profit Margin | 22.1% | 22.1% | 24.7% | 33.4% | 15.3% | 24.2% | 17.0% | 24.1% | 13.8% | 11.5% | 15.6% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 19.5% | 19.5% | 22.0% | 28.4% | 11.1% | 15.7% | 10.7% | 14.4% | 7.3% | 6.3% | 8.4% |
| ROA | 6.4% | 6.4% | 6.6% | 8.3% | 3.2% | 4.9% | 3.5% | 4.7% | 2.4% | 2.0% | 2.6% |
| ROIC | 15.4% | 15.4% | 15.7% | 13.3% | 6.8% | 8.3% | 7.1% | 10.0% | 4.9% | 4.0% | 6.4% |
| ROCE | 11.6% | 11.6% | 18.0% | 15.5% | 7.9% | 10.4% | 3.5% | 4.9% | 2.5% | 2.0% | 3.1% |
ACGL Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Arch Capital Group Ltd. carries a Debt/EBITDA ratio of 0.5x, which is very conservative (88% below the sector average of 4.3x). Net debt stands at $1.7B ($2.7B total debt minus $993M cash). Interest coverage of 34.9x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.11 | 0.11 | 0.13 | 0.15 | 0.21 | 0.20 | 0.22 | 0.19 | 0.21 | 0.25 | 0.27 |
| Debt / EBITDA | 0.53 | 0.53 | 0.58 | 0.85 | 1.84 | 1.50 | 2.03 | 1.30 | 2.43 | 3.44 | 3.01 |
| Net Debt / Equity | — | 0.07 | 0.08 | 0.10 | 0.14 | 0.14 | 0.15 | 0.13 | 0.15 | 0.19 | 0.18 |
| Net Debt / EBITDA | 0.34 | 0.34 | 0.37 | 0.56 | 1.27 | 1.03 | 1.42 | 0.90 | 1.71 | 2.62 | 1.99 |
| Debt / FCF | — | 0.28 | 0.26 | 0.32 | 0.50 | 0.55 | 0.74 | 0.81 | 1.01 | 1.78 | 1.19 |
| Interest Coverage | 34.86 | 34.86 | 32.73 | 26.45 | 12.35 | 16.13 | 11.88 | 16.28 | 7.99 | 7.45 | 13.91 |
ACGL Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.21x means Arch Capital Group Ltd. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 0.67x to 1.21x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.21 | 1.21 | 0.63 | 0.67 | 0.66 | 0.70 | — | — | — | — | — |
| Quick Ratio | 1.21 | 1.21 | 0.63 | 0.67 | 0.66 | 0.70 | — | — | — | — | — |
| Cash Ratio | 1.55 | 1.55 | 0.21 | 0.22 | 0.21 | 0.26 | — | — | — | — | — |
| Asset Turnover | — | 0.30 | 0.25 | 0.23 | 0.20 | 0.20 | 0.19 | 0.18 | 0.17 | 0.17 | 0.15 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
ACGL Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Arch Capital Group Ltd. returns 5.8% to shareholders annually — split between a 0.0% dividend yield and 5.8% buyback yield. The payout ratio of 0.2% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 12.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 0.0% | 0.0% | 5.3% | 0.1% | 0.2% | 0.3% | 0.3% | 0.2% | 0.4% | 0.4% | 0.3% |
| Payout Ratio | 0.2% | 0.2% | 43.3% | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 12.7% | 12.1% | 12.1% | 15.6% | 6.1% | 11.8% | 9.2% | 9.0% | 6.9% | 4.5% | 6.2% |
| FCF Yield | 18.9% | 17.0% | 18.8% | 20.2% | 15.9% | 19.0% | 19.2% | 11.4% | 13.9% | 8.6% | 12.8% |
| Buyback Yield | 5.8% | 5.2% | 0.1% | 0.0% | 2.5% | 6.9% | 0.6% | 0.0% | 3.5% | 2.0% | 0.7% |
| Total Shareholder Yield | 5.8% | 5.3% | 5.4% | 0.1% | 2.6% | 7.2% | 0.8% | 0.3% | 3.8% | 2.4% | 1.0% |
| Shares Outstanding | — | $376M | $382M | $379M | $378M | $400M | $410M | $412M | $413M | $418M | $374M |
Peer Comparison
Compare ACGL with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 ACGLYou | $32B | 7.8 | 6.6 | 5.3 | 37.2% | 25.0% | 19.5% | 15.4% | 0.5 |
 RNR | $13B | 5.3 | 3.4 | 3.5 | 40.7% | 31.5% | 14.6% | 16.0% | 0.6 |
 GLRE | $533M | 7.4 | 5.1 | 2.5 | 40.9% | 11.2% | 11.1% | 9.5% | 0.1 |
 PRE | $349M | -7.6 | — | — | 52.8% | -41.3% | -21.8% | -21.2% | — |
 AXS | $7B | 8.2 | 6.3 | — | 49.9% | 18.7% | 16.2% | 14.8% | 1.2 |
 MKL | $23B | 10.9 | 8.0 | 9.0 | 69.4% | 16.5% | 11.5% | 10.7% | 1.5 |
 ERIE | $10B | 20.8 | 12.4 | 17.9 | 15.8% | 17.7% | 26.2% | 29.5% | — |
 AIG | $40B | 13.6 | 6.5 | 12.0 | 34.5% | 14.5% | 7.4% | 5.9% | 1.3 |
 HIG | $35B | 9.6 | 7.7 | 6.1 | 46.1% | 16.8% | 21.7% | 16.3% | 0.8 |
 CNA | $12B | 9.5 | 8.6 | 5.0 | 30.7% | 11.0% | 11.5% | 8.9% | 1.8 |
 WRB | $25B | 15.1 | 11.1 | 7.3 | 19.8% | 15.9% | 19.6% | 18.2% | 1.2 |
| Financial Services Median | — | 13.6 | 11.4 | 11.1 | 64.1% | 20.3% | 9.0% | 5.5% | 4.3 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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ACGL — Frequently Asked Questions
Quick answers to the most common questions about buying ACGL stock.
What is Arch Capital Group Ltd.'s P/E ratio?
Arch Capital Group Ltd.'s current P/E ratio is 7.8x. The historical average is 25.3x. This places it at the 18th percentile of its historical range.
What is Arch Capital Group Ltd.'s EV/EBITDA?
Arch Capital Group Ltd.'s current EV/EBITDA is 6.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.6x.
What is Arch Capital Group Ltd.'s ROE?
Arch Capital Group Ltd.'s return on equity (ROE) is 19.5%. The historical average is 11.3%.
Is ACGL stock overvalued?
Based on historical data, Arch Capital Group Ltd. is trading at a P/E of 7.8x. This is at the 18th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Arch Capital Group Ltd.'s dividend yield?
Arch Capital Group Ltd.'s current dividend yield is 0.02% with a payout ratio of 0.2%.
What are Arch Capital Group Ltd.'s profit margins?
Arch Capital Group Ltd. has 37.2% gross margin and 25.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Arch Capital Group Ltd. have?
Arch Capital Group Ltd.'s Debt/EBITDA ratio is 0.5x, indicating low leverage. A ratio below 2x is generally considered financially healthy.