Latest Ratios: P/E Ratio 28.0x · EV/EBITDA 14.6x · ROE 15.6%. (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 | $10.6B | $4.9B | $3.2B | $4.5B | $2.6B | $1.4B | $1.2B | $2.3B | $939M | $779M | $1.1B |
| Enterprise Value | $13.4B | $7.7B | $6.5B | $7.6B | $4.7B | $3.7B | $3.3B | $4.2B | $2.7B | $2.6B | $2.3B |
| P/E Ratio → | 27.98 | 12.84 | 6.36 | 6.80 | 5.47 | — | 2.98 | 16.49 | — | — | 9.48 |
| P/S Ratio | 5.39 | 2.47 | 1.54 | 2.48 | 1.82 | 1.88 | 1.01 | 2.41 | 1.27 | 1.21 | 1.48 |
| P/B Ratio | 4.22 | 1.93 | 1.35 | 1.96 | 1.15 | 0.85 | 0.76 | 1.53 | 0.81 | 0.66 | 0.74 |
| P/FCF | 15.80 | 7.25 | — | — | 49.09 | — | — | 27.38 | — | — | — |
| P/OCF | 15.51 | 7.12 | 4.29 | 5.21 | 7.00 | 22.35 | 2.04 | 8.23 | 20.34 | 6.20 | 3.90 |
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 | — | 3.91 | 3.17 | 4.23 | 3.30 | 4.89 | 2.67 | 4.38 | 3.64 | 3.95 | 3.07 |
| EV / EBITDA | 14.55 | 8.33 | 5.79 | 7.79 | 7.72 | 21.72 | 4.99 | 11.59 | 13.01 | — | 7.23 |
| EV / EBIT | 22.62 | 12.95 | 8.06 | 9.12 | 8.21 | 71.56 | 6.71 | 17.88 | 31.73 | — | 13.28 |
| EV / FCF | — | 11.46 | — | — | 89.13 | — | — | 49.84 | — | — | — |
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 | 32.8% | 32.8% | 34.4% | 43.1% | 33.9% | 3.6% | 43.9% | 29.1% | 12.1% | 13.9% | 35.0% |
| Operating Margin | 30.2% | 30.2% | 38.1% | 41.4% | 31.2% | 1.1% | 41.6% | 25.0% | 11.1% | -30.4% | 23.5% |
| Net Profit Margin | 19.3% | 19.3% | 24.2% | 36.4% | 33.2% | -2.0% | 33.8% | 14.6% | -1.2% | -41.0% | 15.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 15.6% | 15.6% | 21.5% | 28.9% | 24.3% | -0.9% | 26.5% | 10.5% | -0.8% | -19.7% | 7.9% |
| ROA | 6.3% | 6.3% | 8.2% | 12.3% | 10.7% | -0.4% | 10.8% | 4.1% | -0.3% | -8.7% | 4.0% |
| ROIC | 8.1% | 8.1% | 10.6% | 11.4% | 8.1% | 0.2% | 10.8% | 5.7% | 2.1% | -5.2% | 5.1% |
| ROCE | 10.9% | 10.9% | 14.1% | 15.1% | 10.9% | 0.2% | 15.7% | 8.4% | 2.9% | -6.9% | 6.5% |
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 | 1.22 | 1.22 | 1.60 | 1.52 | 1.05 | 1.43 | 1.37 | 1.37 | 1.57 | 1.58 | 0.94 |
| Debt / EBITDA | 3.33 | 3.33 | 3.34 | 3.54 | 3.89 | 14.05 | 3.37 | 5.71 | 8.81 | — | 4.38 |
| Net Debt / Equity | — | 1.12 | 1.42 | 1.38 | 0.93 | 1.37 | 1.26 | 1.25 | 1.52 | 1.49 | 0.80 |
| Net Debt / EBITDA | 3.06 | 3.06 | 2.97 | 3.22 | 3.47 | 13.38 | 3.11 | 5.22 | 8.49 | — | 3.75 |
| Debt / FCF | — | 4.20 | — | — | 40.05 | — | — | 22.46 | — | — | — |
| Interest Coverage | 2.54 | 2.54 | 2.66 | 4.68 | 5.82 | 0.83 | 6.72 | 2.49 | 0.91 | -2.78 | 3.08 |
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 | 1.43 | 1.43 | 1.39 | 1.78 | 2.25 | 1.14 | 1.34 | 0.53 | 1.44 | 1.45 | 2.10 |
| Quick Ratio | 1.43 | 1.43 | 1.39 | 1.18 | 2.04 | 0.73 | 1.02 | 0.37 | 0.84 | 1.00 | 1.64 |
| Cash Ratio | 0.51 | 0.51 | 0.70 | 0.77 | 1.25 | 0.39 | 0.63 | 0.21 | 0.31 | 0.56 | 1.15 |
| Asset Turnover | — | 0.34 | 0.33 | 0.31 | 0.30 | 0.18 | 0.31 | 0.26 | 0.24 | 0.21 | 0.25 |
| Inventory Turnover | — | — | — | 4.18 | 11.71 | 6.05 | 7.39 | 4.92 | 5.09 | 5.57 | 5.90 |
| Days Sales Outstanding | — | — | 27.05 | 29.15 | 60.52 | 40.89 | 25.38 | 39.82 | 44.13 | 44.12 | 35.61 |
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 | 2.0% | 4.3% | 13.7% | 14.3% | 1.3% | — | 25.4% | 0.9% | 0.0% | 6.6% | 14.7% |
| Payout Ratio | 54.6% | 54.6% | 87.6% | 97.3% | 7.0% | — | 75.7% | 14.1% | — | — | 140.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.6% | 7.8% | 15.7% | 14.7% | 18.3% | — | 33.6% | 6.1% | — | — | 10.5% |
| FCF Yield | 6.3% | 13.8% | — | — | 2.0% | — | — | 3.7% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.0% | 4.3% | 13.7% | 14.3% | 1.3% | 0.0% | 25.4% | 0.9% | 0.0% | 6.6% | 14.7% |
| Shares Outstanding | — | $223M | $223M | $223M | $214M | $199M | $198M | $179M | $170M | $170M | $157M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying FRO stock.
Frontline Ltd.'s current P/E ratio is 28.0x. The historical average is 7.2x. This places it at the 100th percentile of its historical range.
Frontline Ltd.'s current EV/EBITDA is 14.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.6x.
Frontline Ltd.'s return on equity (ROE) is 15.6%. The historical average is 5.1%.
Based on historical data, Frontline Ltd. is trading at a P/E of 28.0x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Frontline Ltd.'s current dividend yield is 1.96% with a payout ratio of 54.6%.
Frontline Ltd. has 32.8% gross margin and 30.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Frontline Ltd.'s Debt/EBITDA ratio is 3.3x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Extreme cyclicality and volatility
Valuation Reflects Cyclical Peak Earnings
Frontline's forward P/E of 5.20, based on current analyst estimates, appears to price in a significant earnings contraction from the cyclical peak, as the trailing P/E of 26.07 reflects the current high profitability.
The wide gap between the trailing and forward P/E multiples suggests the market is not pricing the current 69.9% net margin as sustainable. The forward EV/EBITDA of 4.39 is also well below the trailing 13.77, indicating expectations of a sharp decline in earnings power. This valuation pattern is typical for cyclical companies at peak earnings, where the market discounts current profits and focuses on normalized, lower future cash flows.
Margins at Cyclical Extremes
Gross margins have surged to 64.5% in 2026Q2, a dramatic expansion from the 24.3% trough in 2025Q3, indicating exceptional pricing power in the current tanker rate environment.
The rapid margin expansion, with operating margin reaching 63.2%, demonstrates powerful operating leverage as revenue scales against a largely fixed cost base. However, the net margin of 69.9% exceeding the operating margin suggests a significant non-operating income contribution in the quarter, which inflates the quality of reported earnings. This level of profitability is historically extreme and likely reflects a peak in the shipping cycle rather than a structural shift.
ROIC Surge Driven by Cyclical Windfall
Return on invested capital has jumped to 8.7% in 2026Q2 from a low of 1.2% in 2025Q1, driven by a massive expansion in net margins rather than a fundamental improvement in asset efficiency.
The ROIC improvement is almost entirely margin-driven, as asset turnover remains low at 0.16, indicating the capital-intensive fleet is not generating proportionally higher revenue per dollar of assets. The ROE of 22.0% is strong but is amplified by the company's leverage, which has been reduced but still contributes to returns. This pattern suggests the returns are cyclical and may not be sustainable if market rates normalize.
Deleveraging Accelerates on Cyclical Cash
The debt-to-equity ratio has improved to 0.77 in 2026Q2 from a peak of 1.72 in 2024Q1, as the company uses strong cash flows to reduce debt and strengthen its balance sheet.
The D/E ratio is now below the peer median of 0.95, indicating a more conservative capital structure. Interest coverage has surged to 16.92x, making debt service extremely comfortable in the current environment. However, this deleveraging is a direct result of the cyclical earnings peak; a reversal in market conditions could quickly erode this progress, as seen in the rapid increase in leverage during the 2025 downturn.
Premium Valuation vs. Peer Group
Frontline trades at a forward P/E of 5.20, a significant discount to the peer median of 15.03, but its trailing P/E of 26.07 is at a premium, reflecting its higher current profitability.
The company's current net margin of 69.9% is substantially higher than the peer median of 36.7%, which explains the premium on trailing earnings. However, its leverage (D/E 0.77) is now more conservative than the peer median of 0.95, suggesting a stronger balance sheet. The valuation discrepancy highlights the market's expectation that Frontline's earnings will revert more sharply to the mean than its peers.
The Peril of Trailing P/E in Cyclicals
The trailing P/E ratio of 26.07 is the most commonly misapplied metric for Frontline, as it uses peak cyclical earnings that are unlikely to be sustained, obscuring the true valuation.
For a cyclical company like Frontline, the trailing P/E is misleading because it capitalizes earnings at a cyclical peak. The forward P/E of 5.20 is a more relevant metric, but it relies on forecasts that may not materialize. Investors should instead focus on the price-to-book ratio (3.93) and compare it to the historical range of the fleet's asset values, as the company's value is fundamentally tied to the replacement cost and earning power of its physical assets, not its current, volatile earnings stream.