Latest Ratios: P/E Ratio 9.5x · EV/EBITDA 7.7x · ROE 12.1%. (2011–2025 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 | $6.0B | $6.5B | $5.8B | $5.6B | $4.2B | $5.1B | $4.6B | $5.1B | $3.3B | $4.1B | $3.0B |
| Enterprise Value | $6.4B | $6.9B | $6.2B | $5.9B | $4.5B | $5.4B | $4.8B | $5.3B | $3.5B | $4.3B | $3.1B |
| P/E Ratio → | 9.49 | 9.42 | 7.95 | 8.11 | 5.04 | 7.45 | 11.13 | 9.19 | 7.17 | 10.88 | 13.43 |
| P/S Ratio | 4.78 | 5.16 | 4.58 | 5.00 | 4.11 | 4.94 | 4.81 | 5.89 | 4.66 | 7.17 | 6.52 |
| P/B Ratio | 1.14 | 1.13 | 1.04 | 1.11 | 0.94 | 1.20 | 1.19 | 1.71 | 1.42 | 2.13 | 2.22 |
| P/FCF | 7.11 | 7.66 | 6.79 | 7.44 | 7.16 | 7.19 | 6.33 | 8.71 | 5.39 | 11.30 | 11.05 |
| P/OCF | 7.05 | 7.60 | 6.73 | 7.40 | 7.11 | 7.16 | 6.31 | 8.66 | 5.36 | 11.22 | 10.92 |
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 | — | 5.45 | 4.86 | 5.24 | 4.44 | 5.27 | 5.04 | 6.06 | 4.88 | 7.53 | 6.67 |
| EV / EBITDA | 7.74 | 8.31 | 7.16 | 7.17 | 4.57 | 6.56 | 9.76 | 7.94 | 6.38 | 10.78 | 9.68 |
| EV / EBIT | 7.79 | 8.04 | 6.92 | 6.95 | 4.51 | 6.52 | 9.64 | 7.86 | 6.30 | 10.75 | 9.79 |
| EV / FCF | — | 8.10 | 7.21 | 7.81 | 7.74 | 7.67 | 6.64 | 8.97 | 5.65 | 11.86 | 11.31 |
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 | 88.2% | 88.2% | 93.6% | 97.2% | 117.2% | 97.0% | 68.5% | 96.2% | 98.4% | 95.3% | 100.0% |
| Operating Margin | 65.2% | 65.2% | 67.5% | 72.8% | 97.0% | 80.0% | 51.3% | 76.0% | 76.0% | 69.1% | 68.1% |
| Net Profit Margin | 54.7% | 54.7% | 57.6% | 61.6% | 81.6% | 66.3% | 43.2% | 64.1% | 65.0% | 65.9% | 48.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 12.1% | 12.1% | 13.6% | 14.6% | 19.1% | 16.8% | 12.1% | 20.8% | 21.7% | 23.1% | 18.1% |
| ROA | 9.5% | 9.5% | 10.8% | 11.5% | 14.5% | 12.5% | 9.1% | 15.8% | 16.0% | 16.7% | 13.3% |
| ROIC | 10.2% | 10.2% | 11.3% | 12.1% | 15.8% | 14.2% | 10.2% | 17.5% | 17.6% | 16.8% | 18.6% |
| ROCE | 13.3% | 13.3% | 14.2% | 14.7% | 18.6% | 16.2% | 12.1% | 22.7% | 21.8% | 20.6% | 22.3% |
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 | 0.09 | 0.09 | 0.09 | 0.08 | 0.09 | 0.10 | 0.08 | 0.08 | 0.09 | 0.13 | 0.07 |
| Debt / EBITDA | 0.60 | 0.60 | 0.57 | 0.51 | 0.42 | 0.51 | 0.65 | 0.34 | 0.41 | 0.62 | 0.32 |
| Net Debt / Equity | — | 0.06 | 0.06 | 0.05 | 0.08 | 0.08 | 0.06 | 0.05 | 0.07 | 0.11 | 0.05 |
| Net Debt / EBITDA | 0.45 | 0.45 | 0.42 | 0.34 | 0.34 | 0.41 | 0.44 | 0.23 | 0.29 | 0.51 | 0.23 |
| Debt / FCF | — | 0.44 | 0.42 | 0.37 | 0.58 | 0.48 | 0.30 | 0.26 | 0.26 | 0.56 | 0.27 |
| Interest Coverage | 26.14 | 26.14 | 25.22 | 28.31 | 64.31 | 100.29 | 55.01 | 65.93 | 54.71 | 77.97 | 733.12 |
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 | 5.75 | 5.75 | 6.51 | 0.41 | 0.93 | 12.13 | 14.67 | 5.21 | 0.18 | 0.29 | 0.11 |
| Quick Ratio | 5.75 | 5.75 | 6.51 | 0.41 | 0.93 | 12.13 | 14.67 | 5.21 | 0.18 | 0.29 | 0.11 |
| Cash Ratio | 5.24 | 5.24 | 5.93 | 10.81 | 0.80 | 12.02 | 14.51 | 5.15 | 5.04 | 9.31 | 0.06 |
| Asset Turnover | — | 0.17 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.22 | 0.23 | 0.22 | 0.24 |
| 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 | 1.9% | 1.9% | 2.0% | 1.9% | 2.2% | 1.5% | 1.5% | 0.6% | — | — | — |
| Payout Ratio | 17.7% | 17.7% | 16.2% | 15.3% | 11.1% | 11.4% | 16.8% | 5.3% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 10.5% | 10.6% | 12.6% | 12.3% | 19.9% | 13.4% | 9.0% | 10.9% | 14.0% | 9.2% | 7.4% |
| FCF Yield | 14.1% | 13.1% | 14.7% | 13.4% | 14.0% | 13.9% | 15.8% | 11.5% | 18.6% | 8.8% | 9.1% |
| Buyback Yield | 9.7% | 9.0% | 1.9% | 1.3% | 2.3% | 3.2% | 0.1% | 0.2% | 0.9% | 0.2% | 0.1% |
| Total Shareholder Yield | 11.6% | 10.9% | 4.0% | 3.1% | 4.5% | 4.8% | 1.6% | 0.8% | 0.9% | 0.2% | 0.1% |
| Shares Outstanding | — | $100M | $107M | $107M | $108M | $112M | $106M | $98M | $98M | $95M | $92M |
Includes 30+ ratios · 15 years · Updated daily
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Quick answers to the most common questions about buying ESNT stock.
Essent Group Ltd.'s current P/E ratio is 9.5x. The historical average is 12.4x. This places it at the 54th percentile of its historical range.
Essent Group Ltd.'s current EV/EBITDA is 7.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.5x.
Essent Group Ltd.'s return on equity (ROE) is 12.1%. The historical average is 12.4%.
Based on historical data, Essent Group Ltd. is trading at a P/E of 9.5x. This is at the 54th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Essent Group Ltd.'s current dividend yield is 1.86% with a payout ratio of 17.7%.
Essent Group Ltd. has 88.2% gross margin and 65.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Essent Group Ltd.'s Debt/EBITDA ratio is 0.6x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Flat revenue growth and regulatory overhang
Metrics are mathematically derived from official filings.
Underwriting Discipline Drives Margins
Essent's combined ratio improved to 36.5% in Q2 2026 from 42.5% in Q4 2024, as per recent SEC filings, reflecting exceptional underwriting profitability and strong credit performance.
The combined ratio has consistently remained below 50% over the past ten quarters, with the loss ratio dropping to 13.5% in Q2 2026 from 17.9% in Q4 2024. This suggests that the company's risk selection and pricing engine, EssentEDGE, are effectively identifying lower-risk borrowers, leading to fewer claims. The expense ratio has been stable around 23%, indicating that the improvement is driven by loss experience rather than cost-cutting, which may be sustainable if credit conditions remain favorable.
ROE Driven by Underwriting, Not Investments
ROE averaged 3.1% quarterly over the last year, as reported in financial statements, with underwriting margins above 60% and minimal investment income, indicating that profitability hinges on credit performance.
With only $123M in cash and negligible invested assets, investment income contributes little to earnings. The underwriting margin, which exceeded 60% in most quarters, is the primary driver of ROE. This concentration suggests that any deterioration in credit quality or an increase in claims could disproportionately impact profitability, as there is no investment cushion to offset underwriting losses.
Expense Ratio Stable Amid Flat Revenue
The expense ratio has held near 23% over the past year, as per company filings, despite flat revenue growth, indicating that Essent is achieving operating leverage through disciplined cost management.
While revenue growth has been flat at -0.5% YoY, the expense ratio has remained stable, suggesting that the company is not scaling costs with volume. This efficiency is likely due to the high fixed-cost nature of the business and the low variable costs of servicing existing policies. However, the recent expansion into title insurance may introduce higher expense ratios if not integrated efficiently, which investors should monitor.
Minimal Leverage Provides Fortress Buffer
Essent's debt-to-equity ratio stands at 0.09%, as per recent SEC filings, with equity of $5.7B against liabilities of $1.9B, indicating exceptional capital strength and ample buffer for adverse scenarios.
The premium-to-surplus ratio, while not directly provided, is likely low given the minimal debt and strong equity base. This conservative capital structure suggests that Essent can withstand significant credit stress without breaching regulatory requirements. The low leverage also provides flexibility for capital returns, as evidenced by the $223.4M in dividends and buybacks in Q2 2026, which exceeded operating cash flow.
Quality Premium Over Peers
Essent trades at a P/B of 1.21 versus peers like MTG at 1.37 and NMIH at 1.39, as per reported figures, yet its ROE of 13.9% (annualized) is comparable, suggesting the market may be discounting its superior capital position.
Despite a lower P/B than some peers, Essent's combined ratio of 36.5% is significantly better than the industry average, and its debt-to-equity is the lowest among peers. This suggests that the market may be undervaluing Essent's underwriting quality and balance sheet strength. The lower P/B could reflect concerns about flat revenue growth, but the company's ability to generate high returns on equity with minimal leverage warrants a premium, not a discount.
Combined Ratio Misleads Without Reserve Adjustments
The combined ratio of 36.5% in Q2 2026, as per financial statements, may be flattered by reserve releases, as evidenced by a negative loss ratio in Q2 2024, obscuring the true underwriting profitability.
Investors often focus on the combined ratio as the key profitability metric, but for Essent, reserve releases have been a significant earnings driver. The negative loss ratio in Q2 2024 indicates that prior-year reserves were released, boosting current earnings. To assess run-rate profitability, analysts should adjust for these releases and examine the loss triangle data. Without this adjustment, the combined ratio may overstate the sustainability of underwriting profits, especially if credit conditions deteriorate.