Latest Ratios: P/E Ratio -21.2x · EV/EBITDA N/A · ROE -29.4%. (2017–2025 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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.0B | $5.1B | $2.6B | $1.1B | $888M | $2.6B | $6.8B | — | — | — |
| Enterprise Value | $2.8B | $4.9B | $2.3B | $902M | $641M | $2.3B | $6.2B | — | — | — |
| P/E Ratio → | -21.21 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 2.83 | 6.93 | 4.95 | 2.61 | 3.46 | 20.08 | 71.79 | — | — | — |
| P/B Ratio | 5.32 | 9.58 | 4.39 | 1.58 | 1.02 | 2.61 | 12.53 | — | — | — |
| P/FCF | 410.58 | — | — | — | — | — | — | — | — | — |
| P/OCF | — | — | — | — | — | — | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.65 | 4.44 | 2.10 | 2.50 | 18.15 | 65.74 | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 40.3% | 40.3% | 32.8% | 21.0% | 11.1% | 17.8% | 21.6% | 17.7% | 13.8% | 100.0% |
| Operating Margin | -21.8% | -21.8% | -38.7% | -53.5% | -114.8% | -181.9% | -128.0% | -160.3% | -233.8% | -1095.8% |
| Net Profit Margin | -22.4% | -22.4% | -38.4% | -55.1% | -116.0% | -187.9% | -129.6% | -161.2% | -235.1% | -1170.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -29.4% | -29.4% | -31.1% | -30.1% | -32.1% | -31.6% | -68.2% | — | — | -87.8% |
| ROA | -8.8% | -8.8% | -11.6% | -14.3% | -18.6% | -20.6% | -19.7% | -38.2% | -54.5% | -69.4% |
| ROIC | -36.8% | -36.8% | -37.7% | -31.1% | -32.5% | -49.3% | — | — | — | -130.6% |
| ROCE | -22.7% | -22.7% | -28.1% | -27.8% | -30.8% | -34.9% | -19.4% | -38.0% | -56.0% | -69.2% |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.34 | 0.34 | 0.18 | 0.06 | 0.04 | 0.02 | — | — | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.38 | -0.45 | -0.31 | -0.29 | -0.25 | -1.06 | — | — | -0.53 |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | — | -9.94 |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($385M) exceeds total debt ($182M)
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.52 | 1.52 | 1.53 | 1.74 | 2.00 | 2.93 | — | — | 39.24 | 14.36 |
| Quick Ratio | 1.52 | 1.52 | 1.53 | 1.74 | 2.00 | 2.93 | — | — | 74.89 | 14.36 |
| Cash Ratio | 0.92 | 0.92 | 0.88 | 1.06 | 1.31 | 2.14 | — | — | 29.32 | 12.00 |
| Asset Turnover | — | 0.38 | 0.28 | 0.26 | 0.15 | 0.09 | 0.11 | 0.16 | 0.15 | 0.06 |
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | 0.2% | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Shares Outstanding | — | $72M | $71M | $70M | $65M | $61M | $55M | $44M | $44M | $11M |
Includes 30+ ratios · 9 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying LMND stock.
Lemonade, Inc.'s current P/E ratio is -21.2x. This places it at the 50th percentile of its historical range.
Lemonade, Inc.'s return on equity (ROE) is -29.4%. The historical average is -44.3%.
Based on historical data, Lemonade, Inc. is trading at a P/E of -21.2x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Lemonade, Inc. has 40.3% gross margin and -21.8% operating margin.
Key Metrics
Top Statement Risk
Persistent underwriting losses and cash burn
Metrics are mathematically derived from official filings.
Combined Ratio Improves but Still Bleeds
Lemonade's combined ratio improved to 115.3% in 2026Q2 from 145.2% a year earlier, as per financial statements, yet remains above 100%, indicating continued underwriting losses.
The improvement is driven by a sharp reduction in the loss ratio, which fell to 56.2% in 2026Q2 from 73.2% in 2024Q2, though the expense ratio remains elevated at 59.1%. The 2025Q4 loss ratio of 37.0% appears anomalous, likely benefiting from favorable reserve development, and may not be sustainable. Investors should monitor whether the underlying loss trend continues to improve without reliance on reserve releases.
ROE Deeply Negative, No Float Benefit Yet
ROE improved to -8.5% in 2026Q2 from -11.0% in 2025Q1, as reported in financial statements, but remains severely negative, reflecting ongoing shareholder value destruction.
The negative ROE is driven by underwriting losses, as investment income is negligible and float is not yet material. The improvement in ROE is modest and largely mirrors the combined ratio trend, but the company still burns cash at a significant rate. Without a sustained move to a sub-100% combined ratio, ROE will remain deeply negative.
Expense Ratio Stubbornly High, Scale Elusive
Expense ratio remains elevated at 59.1% in 2026Q2, down from 89.7% in 2024Q4, according to recent SEC filings, but still far above the 30% level of mature insurers.
The improvement in expense ratio suggests some operating leverage, but the absolute level remains high, indicating that fixed costs have not been sufficiently diluted by premium growth. The company's heavy investment in technology and customer acquisition continues to pressure margins. Achieving true scale will require sustained premium growth without proportional expense increases.
Underwriting Leverage Rising as Equity Erodes
Debt-to-equity rose to 0.41 in 2026Q2 from 0.08 in 2024Q1, as per financial statements, while equity fell 26% to $499.5M, indicating increasing leverage.
The rising D/E ratio reflects both increased debt and a shrinking equity base due to persistent losses. While the absolute leverage remains moderate, the trend is concerning as the company relies on debt and reinsurance to fund growth. Premium-to-surplus is not directly disclosed, but the equity erosion suggests underwriting leverage is increasing, which may strain capital adequacy.
Valuation Premium vs. InsurTech Peers
Lemonade trades at 7.18x book value, versus 2.49x for Root and 1.95x for Hippo, based on reported figures, implying a significant growth premium.
The P/B premium reflects the market's expectation of high growth and a platform-like business model, but it also implies a high ROE expectation that the company is far from achieving. Compared to legacy insurers like Progressive, the premium is even more pronounced, but LMND's growth rate of 40% justifies some premium. However, the negative ROE and persistent losses suggest the market is pricing in future profitability that has yet to materialize.
Combined Ratio Masks Reserve Volatility
The combined ratio is often misapplied to Lemonade without adjusting for reserve development, as per financial statements, which can obscure true underwriting performance.
The loss ratio swung from 73.7% in 2025Q1 to 37.0% in 2025Q4, suggesting reserve releases may have temporarily flattered results. Investors should adjust for reserve changes and focus on the underlying loss trend, especially in newer lines like auto. Additionally, the use of synthetic agents financing may understate customer acquisition costs, making the expense ratio appear lower than the true economic cost.