Latest Ratios: P/E Ratio 11.0x · EV/EBITDA 7.1x · ROE 24.8%. (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 | $6.0B | $5.2B | $3.7B | $2.1B | $1.9B | $2.9B | $2.9B | $2.7B | $2.9B | $3.0B | $3.3B |
| Enterprise Value | $5.2B | $4.5B | $3.5B | $2.1B | $2.0B | $3.0B | $3.0B | $2.8B | $2.9B | $3.0B | $3.4B |
| P/E Ratio → | 11.00 | 9.63 | 7.87 | 21.44 | — | 11.84 | 7.71 | 8.43 | — | 20.40 | 45.61 |
| P/S Ratio | 0.99 | 0.87 | 0.67 | 0.45 | 0.52 | 0.74 | 0.76 | 0.68 | 0.85 | 0.87 | 1.03 |
| P/B Ratio | 2.46 | 2.16 | 1.89 | 1.33 | 1.24 | 1.37 | 1.42 | 1.50 | 1.77 | 1.68 | 1.90 |
| P/FCF | 5.79 | 5.06 | 3.71 | 4.96 | 5.97 | 6.39 | 5.11 | 5.62 | 8.05 | 9.18 | 12.31 |
| P/OCF | 5.48 | 4.79 | 3.55 | 4.56 | 5.37 | 5.86 | 4.77 | 5.19 | 7.46 | 8.66 | 11.58 |
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 | — | 0.75 | 0.65 | 0.45 | 0.56 | 0.75 | 0.78 | 0.71 | 0.86 | 0.89 | 1.06 |
| EV / EBITDA | 7.08 | 6.08 | 5.47 | 12.25 | — | 7.96 | 5.61 | 6.38 | 103.59 | 13.65 | 27.66 |
| EV / EBIT | 7.88 | 6.48 | 5.86 | 17.01 | — | 9.51 | 6.22 | 7.15 | — | 16.66 | 45.92 |
| EV / FCF | — | 4.36 | 3.58 | 5.05 | 6.38 | 6.54 | 5.23 | 5.89 | 8.21 | 9.43 | 12.68 |
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 | 33.9% | 33.9% | 17.0% | 8.7% | -10.3% | 15.0% | 20.1% | 16.7% | 6.8% | 12.2% | 9.6% |
| Operating Margin | 11.1% | 11.1% | 10.5% | 2.1% | -18.4% | 7.5% | 12.1% | 9.5% | -0.9% | 4.9% | 2.2% |
| Net Profit Margin | 9.0% | 9.0% | 8.5% | 2.1% | -14.1% | 6.2% | 9.9% | 8.1% | -0.2% | 4.2% | 2.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 24.8% | 24.8% | 26.8% | 6.3% | -28.0% | 11.9% | 19.6% | 18.7% | -0.3% | 8.2% | 4.1% |
| ROA | 6.1% | 6.1% | 6.1% | 1.4% | -7.7% | 3.8% | 6.1% | 5.7% | -0.1% | 2.9% | 1.6% |
| ROIC | 28.4% | 28.4% | 25.4% | 4.6% | -26.0% | 10.4% | 17.1% | 15.8% | -1.3% | 6.8% | 2.9% |
| ROCE | 7.4% | 7.4% | 7.5% | 1.5% | -10.1% | 11.6% | 7.5% | 6.8% | -0.6% | 3.4% | 1.5% |
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 | 0.25 | 0.25 | 0.30 | 0.38 | 0.28 | 0.19 | 0.20 | 0.23 | 0.23 | 0.21 | 0.18 |
| Debt / EBITDA | 0.80 | 0.80 | 0.91 | 3.42 | — | 1.08 | 0.79 | 0.95 | 13.19 | 1.67 | 2.58 |
| Net Debt / Equity | — | -0.30 | -0.07 | 0.02 | 0.09 | 0.03 | 0.03 | 0.07 | 0.04 | 0.05 | 0.06 |
| Net Debt / EBITDA | -0.98 | -0.98 | -0.20 | 0.22 | — | 0.19 | 0.13 | 0.28 | 2.04 | 0.36 | 0.80 |
| Debt / FCF | — | -0.70 | -0.13 | 0.09 | 0.41 | 0.16 | 0.12 | 0.26 | 0.16 | 0.25 | 0.37 |
| Interest Coverage | 24.19 | 24.19 | 19.65 | 5.11 | -37.92 | 18.49 | 27.89 | 23.19 | -0.80 | 12.02 | 18.85 |
Net cash position: cash ($1.3B) exceeds total debt ($594M)
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 | 66.98 | 66.98 | 68.00 | — | — | 0.30 | — | 10.37 | 12.07 | 9.70 | 59.83 |
| Quick Ratio | 66.98 | 66.98 | 68.00 | — | — | 0.30 | — | 21.21 | 24.06 | 41.94 | 259.18 |
| Cash Ratio | 42.76 | 42.76 | 48.38 | — | — | 0.12 | — | 5.50 | 4.93 | 9.70 | 59.83 |
| Asset Turnover | — | 0.63 | 0.66 | 0.65 | 0.56 | 0.59 | 0.60 | 0.67 | 0.62 | 0.67 | 0.67 |
| 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 | 1.2% | 1.4% | 1.9% | 3.4% | 5.6% | 4.8% | 4.8% | 5.2% | 4.8% | 4.7% | 4.1% |
| Payout Ratio | 13.0% | 13.0% | 15.0% | 73.0% | — | 56.6% | 37.3% | 43.4% | — | 95.2% | 187.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.1% | 10.4% | 12.7% | 4.7% | — | 8.4% | 13.0% | 11.9% | — | 4.9% | 2.2% |
| FCF Yield | 17.3% | 19.7% | 26.9% | 20.1% | 16.7% | 15.7% | 19.6% | 17.8% | 12.4% | 10.9% | 8.1% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% |
| Total Shareholder Yield | 1.2% | 1.4% | 1.9% | 3.4% | 5.6% | 4.8% | 4.8% | 5.2% | 4.8% | 4.7% | 4.2% |
| Shares Outstanding | — | $55M | $55M | $55M | $55M | $55M | $55M | $55M | $55M | $55M | $55M |
California Regulatory Rate Lag
As reported in recent financial data, Mercury General trades at a P/B of 2.46, a multiple that appears to price in a recovery of underwriting margins following the volatility observed in 2025, suggesting investors are cautiously optimistic about the company's ability to navigate the California regulatory landscape.
The current P/B multiple indicates that the market is beginning to look past the 2025 underwriting losses, valuing the company's franchise based on its potential for normalized ROE. This valuation appears to be a premium relative to peers like Kemper, likely reflecting Mercury's more conservative capital structure and historical stability in its core California market.
According to quarterly financial statements, the combined ratio has improved significantly to 84.7% in 2026Q1 from the 110.2% peak in 2025Q1, indicating that recent rate adjustments are successfully aligning premium income with the elevated claims costs that previously pressured the company's core underwriting profitability.
The trajectory of the combined ratio suggests that the company has successfully moved past the period of extreme loss severity that characterized early 2025. Investors should monitor whether this sub-90% combined ratio is sustainable or if it remains vulnerable to future atmospheric events and inflationary pressures on vehicle repair costs.
Based on the provided quarterly figures, ROE has rebounded to 7.6% in 2026Q1, a recovery that appears primarily driven by the restoration of underwriting margins rather than investment income, highlighting the critical importance of the California Department of Insurance rate-filing cycle to the company's overall profitability.
The decomposition of ROE shows that underwriting profit is the primary engine of return, which makes the company highly sensitive to loss ratio fluctuations. While investment income on float provides a stable baseline, the volatility in ROE over the last ten quarters underscores the company's reliance on successful rate execution.
As evidenced by the company's D/E ratio of 0.23 in 2026Q1, Mercury General maintains a conservative capital structure that appears designed to withstand regional catastrophe risks, providing a necessary buffer against the volatility inherent in its concentrated California personal lines insurance portfolio.
The low leverage profile suggests that management prioritizes solvency and regulatory capital adequacy over aggressive financial engineering. This conservative stance appears appropriate given the company's geographic concentration, as it ensures the firm can absorb unexpected claims spikes without needing to access external capital markets under duress.
Investors frequently misapply the P/E ratio to Mercury General, failing to account for the fact that earnings are heavily distorted by volatile catastrophe losses and prior-year reserve development, which can mask the underlying health of the company's core underwriting operations and long-term franchise value.
The P/E ratio is a flawed metric for this insurer because it ignores the book value of assets backing reserves, which is the true anchor of value. Analysts should prioritize the P/B ratio and the combined ratio, as these metrics provide a more accurate view of the company's underwriting discipline and capital efficiency.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying MCY stock.
Mercury General Corporation's current P/E ratio is 11.0x. The historical average is 16.9x. This places it at the 22th percentile of its historical range.
Mercury General Corporation's current EV/EBITDA is 7.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.0x.
Mercury General Corporation's return on equity (ROE) is 24.8%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 11.0%.
Based on historical data, Mercury General Corporation is trading at a P/E of 11.0x. This is at the 22th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Mercury General Corporation's current dividend yield is 1.18% with a payout ratio of 13.0%.
Mercury General Corporation has 33.9% gross margin and 11.1% operating margin. Operating margin between 10-20% is typical for established companies.
Mercury General Corporation's Debt/EBITDA ratio is 0.8x, indicating low leverage. A ratio below 2x is generally considered financially healthy.