Latest Ratios: P/E Ratio 10.6x · EV/EBITDA 7.5x · ROE 13.0%. (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 | $6.7B | $5.9B | $5.1B | $4.7B | $3.9B | $3.4B | — | — | — |
| Enterprise Value | $6.8B | $6.1B | $5.3B | $4.8B | $4.2B | $3.7B | — | — | — |
| P/E Ratio → | 10.56 | 8.77 | 7.41 | 7.03 | 5.60 | 6.15 | — | — | — |
| P/S Ratio | 5.42 | 4.81 | 4.24 | 4.05 | 3.60 | 3.01 | — | — | — |
| P/B Ratio | 1.33 | 1.11 | 1.02 | 1.01 | 0.96 | 0.82 | — | — | — |
| P/FCF | 9.20 | 8.17 | 7.43 | 7.40 | 6.94 | — | — | — | — |
| P/OCF | 9.20 | 8.17 | 7.43 | 7.40 | 7.03 | 5.88 | — | — | — |
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 | — | 4.94 | 4.38 | 4.19 | 3.83 | 3.32 | — | — | — |
| EV / EBITDA | 7.51 | 6.69 | 5.66 | 5.35 | 4.42 | 5.32 | — | — | — |
| EV / EBIT | 7.95 | 6.69 | 5.66 | 5.35 | 4.42 | 4.98 | — | — | — |
| EV / FCF | — | 8.39 | 7.67 | 7.64 | 7.40 | — | — | — | — |
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 | 91.1% | 91.1% | 78.2% | 78.3% | 86.7% | 66.8% | 44.3% | 73.4% | 100.0% |
| Operating Margin | 69.8% | 69.8% | 73.1% | 73.8% | 82.0% | 62.1% | 42.7% | 73.4% | 73.0% |
| Net Profit Margin | 54.8% | 54.8% | 57.2% | 57.7% | 64.3% | 48.8% | 33.5% | 69.2% | 57.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 13.0% | 13.0% | 14.3% | 15.2% | 17.2% | 13.7% | 9.6% | 19.1% | 14.8% |
| ROA | 10.0% | 10.0% | 10.8% | 11.1% | 12.1% | 9.4% | 7.2% | 15.7% | 11.8% |
| ROIC | 12.1% | 12.1% | 13.2% | 14.0% | 15.3% | 12.0% | 9.5% | 16.8% | 14.8% |
| ROCE | 13.0% | 13.0% | 14.1% | 14.7% | 16.0% | 12.6% | 9.9% | 18.3% | 16.7% |
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 | 0.14 | 0.14 | 0.15 | 0.17 | 0.19 | 0.19 | 0.20 | 0.01 | — |
| Debt / EBITDA | 0.82 | 0.82 | 0.82 | 0.85 | 0.81 | 1.11 | 1.58 | 0.07 | — |
| Net Debt / Equity | — | 0.03 | 0.03 | 0.03 | 0.06 | 0.09 | 0.08 | -0.14 | -0.05 |
| Net Debt / EBITDA | 0.18 | 0.18 | 0.17 | 0.17 | 0.27 | 0.50 | 0.66 | -0.75 | -0.26 |
| Debt / FCF | — | 0.22 | 0.23 | 0.24 | 0.45 | — | 0.46 | -1.66 | -0.31 |
| Interest Coverage | 18.19 | 18.19 | 18.16 | 17.42 | 18.37 | 14.63 | 26.89 | — | — |
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 | 6.86 | 6.86 | 5.50 | 4.31 | 2.69 | 1.90 | 1.39 | 1.63 | 0.47 |
| Quick Ratio | 6.86 | 6.86 | 5.50 | 4.31 | 2.69 | 1.90 | 1.39 | 1.63 | 0.47 |
| Cash Ratio | 6.36 | 6.36 | 5.06 | 4.02 | 2.49 | 1.73 | 1.26 | 1.53 | 0.38 |
| Asset Turnover | — | 0.18 | 0.18 | 0.19 | 0.19 | 0.19 | 0.19 | 0.21 | 0.21 |
| 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 | 1.7% | 2.0% | 2.2% | 4.6% | 6.4% | 5.9% | — | — | — |
| Payout Ratio | 17.9% | 17.9% | 16.2% | 32.0% | 35.6% | 36.6% | 118.1% | 36.9% | 10.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.5% | 11.4% | 13.5% | 14.2% | 17.9% | 16.3% | — | — | — |
| FCF Yield | 10.9% | 12.2% | 13.5% | 13.5% | 14.4% | — | — | — | — |
| Buyback Yield | 5.7% | 6.5% | 4.8% | 1.9% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 7.4% | 8.5% | 7.0% | 6.4% | 6.4% | 5.9% | — | — | — |
| Shares Outstanding | — | $149M | $158M | $162M | $163M | $163M | $163M | $163M | $163M |
Includes 30+ ratios · 8 years · Updated daily
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Quick answers to the most common questions about buying ACT stock.
Enact Holdings Inc.'s current P/E ratio is 10.6x. The historical average is 7.0x. This places it at the 100th percentile of its historical range.
Enact Holdings Inc.'s current EV/EBITDA is 7.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 5.5x.
Enact Holdings Inc.'s return on equity (ROE) is 13.0%. The historical average is 14.6%.
Based on historical data, Enact Holdings Inc. is trading at a P/E of 10.6x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Enact Holdings Inc.'s current dividend yield is 1.69% with a payout ratio of 17.9%.
Enact Holdings Inc. has 91.1% gross margin and 69.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Enact Holdings Inc.'s Debt/EBITDA ratio is 0.8x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Regulatory and TAM risk
Metrics are mathematically derived from official filings.
Premium Valuation Reflects Earnings Durability
ACT trades at a P/B of 1.37, a premium to peers like RDN (1.05) and ESNT (1.20), suggesting the market is pricing in the exceptional durability of its earnings stream from a high-persistency, low-loss environment.
The current P/B multiple, while at the high end of its 10-quarter range, appears justified by the company's superior ROE trajectory and the structural 'golden handcuff' effect extending its profitable book. However, this premium valuation is contingent on the continuation of favorable credit conditions and high interest rates, as a significant shift in the macro environment could compress the multiple toward the peer group average.
Combined Ratio Signals Structural Profitability
The combined ratio has improved to 30.7% in Q2 2026, indicating that for every dollar of premium earned, the company retains over 69 cents as underwriting profit, a level of profitability that appears structurally supported by a benign credit environment.
This exceptional underwriting margin is driven by a historically low loss ratio of 10.5%, which suggests the current book of business is experiencing minimal claim activity. The sustainability of this margin is key; while the expense ratio has normalized to around 20%, the loss ratio remains the primary variable, and any uptick in delinquencies or a reversal of favorable reserve releases could quickly erode this profitability.
ROE Driven by Underwriting, Not Leverage
ACT's quarterly ROE has stabilized around 3.1-3.3%, a return profile generated almost entirely from underwriting profits and investment income on float, given the company's minimal financial leverage of 0.14% D/E.
The decomposition of ROE reveals a business model reliant on operational excellence rather than balance sheet leverage. The consistent ROA of ~2.5% confirms that profitability is asset-driven, with the spread between ROE and ROA being minimal due to the near-zero debt. This structure makes the return profile less volatile to interest rate swings but highly sensitive to the underlying credit performance of the mortgage insurance portfolio.
Expense Ratio Normalization Masks Scale Benefits
The expense ratio has normalized to approximately 20% in recent quarters after a period of volatility, suggesting that the company's high fixed-cost base is being efficiently absorbed by its stable premium income stream.
The shift from a 4% expense ratio in early 2025 to over 20% in 2026 likely reflects a change in accounting or ceding commission treatment rather than a deterioration in operational efficiency. The current level appears sustainable for a specialized insurer of this scale, and further improvements may be limited without significant growth in the Insurance in Force base to leverage the existing compliance and data infrastructure.
Minimal Leverage Amplifies Capital Return Capacity
With a debt-to-equity ratio of just 0.14%, ACT maintains a capital structure that appears to significantly exceed PMIERs requirements, providing ample capacity for shareholder returns via dividends and buybacks.
The consistently low leverage ratio indicates that the company is operating with a substantial capital buffer above regulatory minimums. This fortress balance sheet is a key competitive advantage, allowing for consistent capital return without compromising financial strength. However, it also implies that the company is not utilizing financial leverage to enhance returns, which may be a strategic choice given the cyclical nature of its core business.
The Peril of a Static Loss Ratio View
The single most misapplied metric is the current-period loss ratio, which at 10.5% appears exceptionally low but may be artificially depressed by prior-period reserve releases, obscuring the true run-rate of claims activity.
Analysts focusing solely on the current loss ratio risk underestimating the company's true risk profile. The significant volatility in this metric, swinging from 28.5% to 5.7% in recent quarters, strongly suggests that reserve adjustments are a material driver of reported earnings. A more appropriate metric would be the 'accident year' loss ratio, which adjusts for reserve development, to assess the underlying profitability of the current book of business.