Latest Ratios: P/E Ratio 42.1x · EV/EBITDA 29.9x · ROE 7.7%. (2019–2025 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 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.3B | $4.7B | $854M | $2.7B | $2.8B | $1.2B | — | — |
| Enterprise Value | $5.3B | $4.6B | $819M | $2.2B | $2.6B | $690M | — | — |
| P/E Ratio → | 42.11 | 36.32 | 96.50 | 83.51 | — | — | — | — |
| P/S Ratio | 3.67 | 3.20 | 0.72 | 2.62 | 3.41 | 2.02 | — | — |
| P/B Ratio | 7.24 | 6.24 | 1.63 | 5.38 | 7.70 | 4.31 | — | — |
| P/FCF | 27.51 | 23.98 | 5.49 | 22.39 | 258.10 | — | — | — |
| P/OCF | 24.43 | 21.30 | 4.82 | 18.31 | 51.10 | 27.61 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.16 | 0.69 | 2.14 | 3.09 | 1.20 | — | — |
| EV / EBITDA | 29.90 | 26.01 | 6.18 | 23.94 | 57.03 | — | — | — |
| EV / EBIT | 37.96 | 33.03 | 8.75 | 48.43 | 231.18 | — | — | — |
| EV / FCF | — | 23.64 | 5.26 | 18.29 | 234.20 | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 80.4% | 80.4% | 74.9% | 78.2% | 55.0% | 54.4% | 81.8% | 100.0% |
| Operating Margin | 9.6% | 9.6% | 7.9% | 4.4% | 1.3% | -9.5% | 3.0% | 2.7% |
| Net Profit Margin | 3.4% | 3.4% | 1.4% | 2.0% | 3.9% | -8.0% | 2.0% | 1.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | 7.7% | 7.7% | 3.3% | 4.7% | 10.1% | -23.9% | 8.7% | 3.8% |
| ROA | 2.6% | 2.6% | 1.1% | 1.4% | 2.8% | -5.7% | 1.7% | 0.9% |
| ROIC | 17.9% | 17.9% | 28.3% | 59.6% | 7.9% | — | — | 5.8% |
| ROCE | 7.4% | 7.4% | 5.8% | 3.1% | 1.0% | -6.7% | — | 7.3% |
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 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.31 | 0.31 | 0.38 | 0.48 | 0.76 | 0.47 | 0.59 | 0.47 |
| Debt / EBITDA | 1.32 | 1.32 | 1.49 | 2.63 | 6.17 | — | 2.59 | 2.64 |
| Net Debt / Equity | — | -0.09 | -0.07 | -0.99 | -0.71 | -1.76 | -1.96 | 0.28 |
| Net Debt / EBITDA | -0.38 | -0.38 | -0.26 | -5.37 | -5.82 | — | -8.63 | 1.54 |
| Debt / FCF | — | -0.34 | -0.22 | -4.10 | -23.90 | — | -4.97 | 0.75 |
| Interest Coverage | 16.01 | 16.01 | — | 10.97 | — | — | — | — |
Net cash position: cash ($299M) exceeds total debt ($233M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | — | — | — | — | — | — | — | 1.31 |
| Quick Ratio | — | — | — | — | — | — | — | 1.31 |
| Cash Ratio | — | — | — | — | — | — | — | 0.07 |
| Asset Turnover | — | 0.70 | 0.71 | 0.65 | 0.64 | 0.56 | 0.84 | 0.90 |
| 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 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.1% | 0.1% | — | — | — | 0.3% | — | — |
| Payout Ratio | — | — | — | — | — | — | 39.3% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.4% | 2.8% | 1.0% | 1.2% | — | — | — | — |
| FCF Yield | 3.6% | 4.2% | 18.2% | 4.5% | 0.4% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.7% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.1% | 0.1% | 0.7% | 0.0% | 0.0% | 0.3% | — | — |
| Shares Outstanding | — | $347M | $89M | $340M | $336M | $82M | $15M | $329M |
Includes 30+ ratios · 7 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying HGTY stock.
Hagerty, Inc.'s current P/E ratio is 42.1x. The historical average is 72.1x. This places it at the 33th percentile of its historical range.
Hagerty, Inc.'s current EV/EBITDA is 29.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 28.3x.
Hagerty, Inc.'s return on equity (ROE) is 7.7%. The historical average is 2.1%.
Based on historical data, Hagerty, Inc. is trading at a P/E of 42.1x. This is at the 33th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Hagerty, Inc.'s current dividend yield is 0.10%.
Hagerty, Inc. has 80.4% gross margin and 9.6% operating margin.
Hagerty, Inc.'s Debt/EBITDA ratio is 1.3x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Claims severity inflation pressure
Metrics are mathematically derived from official filings.
Underwriting Discipline Wavers in Q1 2026
Hagerty's combined ratio averaged 94.4% over the last four quarters, but Q1 2026 spiked to 106.7%, driven by a 75.3% expense ratio, according to recent financial statements.
The Q1 2026 combined ratio of 106.7% marks a sharp deterioration from the 88.9% in Q4 2025, with the expense ratio jumping to 75.3% from 72.0%. This suggests cost pressures from the State Farm partnership ramp-up and continued investment in the enthusiast ecosystem. The loss ratio remained stable at 31.4%, indicating that the spike was expense-driven rather than claims-driven, but the underwriting margin swung to -6.7%, underscoring the fragility of profitability in a high-growth phase.
ROE Recovery Masked by Volatile Quarters
ROE swung from -0.6% in Q1 2026 to 3.5% in Q3 2025, with a 10-quarter average near 1.1%, reflecting underwriting gains offset by investment income limitations, as per SEC filings.
The ROE trajectory is choppy, with Q3 2025 reaching 3.5% but Q1 2026 dipping to -0.6%. This volatility stems from underwriting results, as investment income data is unavailable and appears minimal. The modest ROE relative to peers like Kinsale (29.1%) suggests Hagerty's capital-light agency model generates lower returns on equity, but the raised full-year guidance implies management expects improved underwriting performance to lift ROE going forward.
Expense Ratio Pressures from Scale Investments
Hagerty's expense ratio averaged 68.2% in Q2 2026, up from 63.6% in Q4 2024, indicating rising fixed costs from content and physical infrastructure, based on reported figures.
The expense ratio has trended upward, from 63.6% in Q4 2024 to 68.2% in Q2 2026, with a peak of 75.8% in Q3 2025. This suggests that the company's investments in the 'Garage + Social' facilities and media content are not yet yielding scale benefits. The high gross margin of 80.4% indicates a service-oriented model, but the operating margin of 9.56% shows that fixed costs are absorbing a significant portion of revenue. Investors should monitor whether the State Farm partnership can drive enough policy growth to absorb these costs.
Underwriting Leverage Elevated but Manageable
Hagerty's premium-to-surplus ratio appears high, with liabilities of $1.4B against equity of $300.5M, implying a D/E of 4.7, though cash flow covers claims, as per balance sheet data.
The balance sheet shows significant leverage, with total liabilities of $1.4B versus equity of $300.5M, translating to a debt-to-equity ratio of 4.7. This is partly due to the agency model's use of reinsurance and premium float. However, operating cash flow of $169.9M in Q2 2026 comfortably covers claims paid of $110.7M, indicating adequate liquidity. The P/B of 6.09 suggests the market is pricing in future growth, but the leverage warrants monitoring if underwriting results deteriorate.
Valuation Premium Reflects Platform Potential
Hagerty trades at a P/B of 6.09, a premium to Kinsale's 4.38 and Palomar's 3.83, implying expectations of superior growth, though ROE lags at 1.1% versus peers' 20%+, per market data.
Hagerty's P/B of 6.09 is significantly higher than specialty insurers like Kinsale (4.38) and Palomar (3.83), despite a much lower ROE (1.1% vs. 29.1% and 21.6%). This suggests the market is valuing Hagerty's membership ecosystem and data assets as a growth platform, not just an insurance book. The premium may be justified if the State Farm partnership accelerates policy growth, but it leaves little room for underperformance. The P/E of 35.46 also implies high earnings growth expectations that the current underwriting results do not yet support.
Combined Ratio Misleads on Reserve Releases
Hagerty's combined ratio of 99.4% in Q2 2026 appears profitable, but reserve releases likely masked higher current accident year losses, as loss ratios dipped to 16.9% in Q4 2025, per filings.
The combined ratio is the standard underwriting metric, but for Hagerty, it may be distorted by prior-year reserve releases. For instance, Q4 2025's loss ratio of 16.9% is unusually low, suggesting favorable development that may not recur. Analysts should adjust for reserve releases to assess current accident year profitability. Additionally, the expense ratio's volatility—ranging from 43.3% to 75.3%—makes the combined ratio less reliable as a standalone measure. A better approach is to examine the underlying loss ratio excluding reserve adjustments and to track the expense ratio trend separately.