Latest Ratios: P/E Ratio 17.7x · EV/EBITDA 12.5x · ROE 23.6%. (2016–2025 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 | $3.4B | $3.7B | $2.8B | $1.4B | $1.2B | $1.7B | $2.3B | $1.1B | — | — | — |
| Enterprise Value | $3.3B | $3.6B | $2.7B | $1.4B | $1.1B | $1.6B | $2.2B | $1.1B | — | — | — |
| P/E Ratio → | 17.74 | 18.79 | 23.57 | 17.73 | 22.36 | 36.80 | 370.17 | 103.04 | — | — | — |
| P/S Ratio | 3.85 | 4.23 | 5.00 | 3.74 | 3.56 | 6.83 | 13.50 | 9.73 | — | — | — |
| P/B Ratio | 3.71 | 3.93 | 3.80 | 2.98 | 3.03 | 4.29 | 6.25 | 5.04 | — | — | — |
| P/FCF | 8.39 | 9.21 | 10.61 | 12.85 | 7.12 | 20.39 | 45.96 | 28.43 | — | — | — |
| P/OCF | 8.24 | 9.05 | 10.60 | 12.11 | 6.87 | 19.26 | 42.47 | 26.44 | — | — | — |
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 | — | 4.11 | 4.85 | 3.74 | 3.46 | 6.64 | 13.30 | 9.44 | — | — | — |
| EV / EBITDA | 12.48 | 13.74 | 17.20 | 13.01 | 15.81 | 27.10 | 296.42 | 58.46 | — | — | — |
| EV / EBIT | 12.91 | 14.20 | 17.65 | 13.10 | 16.56 | 28.76 | 360.06 | 55.85 | — | — | — |
| EV / FCF | — | 8.97 | 10.30 | 12.86 | 6.92 | 19.82 | 45.29 | 27.58 | — | — | — |
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 | 73.9% | 73.9% | 48.6% | 52.0% | 42.1% | 44.8% | 23.9% | 62.2% | 52.7% | 36.7% | 42.3% |
| Operating Margin | 28.9% | 28.9% | 27.3% | 27.6% | 20.7% | 23.1% | 3.7% | 16.0% | 25.0% | 8.3% | 14.7% |
| Net Profit Margin | 22.5% | 22.5% | 21.2% | 21.1% | 15.9% | 18.5% | 3.7% | 9.4% | 25.0% | 6.4% | 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 | 23.6% | 23.6% | 19.6% | 18.5% | 13.4% | 12.1% | 2.1% | 6.9% | 21.5% | 5.0% | 9.0% |
| ROA | 8.8% | 8.8% | 5.9% | 5.3% | 4.7% | 5.5% | 1.1% | 3.4% | 8.7% | 2.3% | 4.6% |
| ROIC | 25.5% | 25.5% | 20.2% | 18.8% | 14.5% | 12.6% | 1.8% | 9.5% | 14.7% | 4.5% | 5.9% |
| ROCE | 11.3% | 11.3% | 7.6% | 6.9% | 17.3% | 10.6% | 1.2% | 6.0% | 9.5% | 3.2% | — |
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 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | — | 0.11 | 0.09 | 0.01 | — | — | 0.21 | 0.22 | 0.23 |
| Debt / EBITDA | 0.03 | 0.03 | — | 0.49 | 0.51 | 0.06 | — | — | 1.04 | 3.36 | 2.67 |
| Net Debt / Equity | — | -0.11 | -0.11 | 0.00 | -0.08 | -0.12 | -0.09 | -0.15 | 0.10 | 0.08 | 0.10 |
| Net Debt / EBITDA | -0.38 | -0.38 | -0.51 | 0.01 | -0.44 | -0.77 | -4.44 | -1.81 | 0.52 | 1.24 | 1.13 |
| Debt / FCF | — | -0.25 | -0.31 | 0.01 | -0.19 | -0.56 | -0.68 | -0.85 | 0.43 | 0.31 | 0.48 |
| Interest Coverage | 647.40 | 647.40 | 133.86 | 28.45 | 78.38 | 1429.45 | — | 17.93 | 8.91 | 3.82 | 4.84 |
Net cash position: cash ($107M) exceeds total debt ($7M)
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 | — | — | — | — | 1.25 | 1.49 | 13.62 | 270.73 | 6.61 | 12.33 | — |
| Quick Ratio | — | — | — | — | 1.25 | 1.49 | 13.62 | 342.28 | 7.88 | 15.65 | — |
| Cash Ratio | — | — | — | — | 0.63 | 0.91 | 10.04 | 223.06 | 5.28 | 9.74 | — |
| Asset Turnover | — | 0.39 | 0.24 | 0.22 | 0.25 | 0.27 | 0.23 | 0.29 | 0.32 | 0.32 | 0.29 |
| 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 | — | — | — | — | — | — | — | 0.5% | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | 48.2% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.6% | 5.3% | 4.2% | 5.6% | 4.5% | 2.7% | 0.3% | 1.0% | — | — | — |
| FCF Yield | 11.9% | 10.9% | 9.4% | 7.8% | 14.0% | 4.9% | 2.2% | 3.5% | — | — | — |
| Buyback Yield | 1.1% | 1.0% | 0.0% | 1.6% | 3.0% | 0.9% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 1.1% | 1.0% | 0.0% | 1.6% | 3.0% | 0.9% | 0.0% | 0.5% | — | — | — |
| Shares Outstanding | — | $27M | $26M | $25M | $26M | $26M | $26M | $22M | $23M | $23M | $23M |
Includes 30+ ratios · 10 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 PLMR stock.
Palomar Holdings, Inc.'s current P/E ratio is 17.7x. The historical average is 37.0x. This places it at the 17th percentile of its historical range.
Palomar Holdings, Inc.'s current EV/EBITDA is 12.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 24.2x.
Palomar Holdings, Inc.'s return on equity (ROE) is 23.6%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 13.2%.
Based on historical data, Palomar Holdings, Inc. is trading at a P/E of 17.7x. This is at the 17th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Palomar Holdings, Inc. has 73.9% gross margin and 28.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Palomar Holdings, Inc.'s Debt/EBITDA ratio is 0.0x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Reinsurance cost inflation and casualty reserve risk
Metrics are mathematically derived from official filings.
Underwriting Discipline Holds Despite Mix Shift
Palomar's combined ratio averaged 74.5% over the last four quarters, with Q2 2026 at 77.8%, reflecting continued underwriting profitability, as reported in the latest quarterly filings.
The combined ratio has remained well below 100%, indicating strong underwriting profitability. The Q2 2026 loss ratio of 54.1% is elevated versus the prior-year quarter (48.7%), likely due to catastrophe activity or business mix, but the expense ratio of 23.7% is among the lowest in the period, benefiting from scale and fronting fee income. The trajectory suggests that while the mix shifts toward casualty and fronting, underwriting margins remain resilient, though the sustainability of sub-80% combined ratios warrants monitoring given the hardening reinsurance market.
ROE Decomposition Points to Underwriting Strength
Palomar's ROE averaged 5.4% in Q2 2026, with underwriting margins of 22.2% driving returns, while investment income remains a secondary contributor, based on reported financial data.
The quarterly ROE of 5.4% annualizes to over 20%, consistent with the company's high-return profile. The underwriting margin of 22.2% is the primary driver, far exceeding the typical contribution from investment income, which is not separately disclosed but likely modest given the short-duration portfolio. This decomposition suggests that Palomar's profitability is fundamentally underwriting-led, not investment-led, which differentiates it from many P&C peers and supports a premium valuation if underwriting discipline persists.
Expense Ratio Benefits from Fronting Scale
Palomar's expense ratio improved to 23.7% in Q2 2026 from 24.1% a year earlier, reflecting operating leverage from the rapidly scaling PLMR-Front business, as per the latest income statement.
The expense ratio has been volatile on a quarterly basis, spiking to 49.6% in Q1 2026 due to timing of ceding commissions, but the underlying trend is downward as revenue grows faster than fixed costs. The fronting business generates fee income with minimal incremental expense, which should continue to drive efficiency gains. However, the transition into casualty lines may require higher claims-handling expenses, so investors should monitor whether the expense ratio remains competitive against peers like Kinsale (which has a structurally low expense ratio).
Underwriting Leverage Remains Conservative
Palomar's premium-to-surplus ratio is not directly disclosed, but the low debt-to-equity of 0.30 and strong equity growth to $980.9M suggest ample capital to support expansion, as reported in the balance sheet.
The company's debt-to-equity ratio of 0.30 in Q2 2026 is modest, and the absence of significant debt indicates a conservative capital structure. The rapid growth in equity (up 15.8% quarter-over-quarter) provides a growing surplus base to support premium expansion, particularly in the capital-light fronting segment. While the exact premium-to-surplus ratio is unavailable, the balance sheet strength suggests Palomar is not over-leveraged relative to its risk profile, though the shift to casualty lines may require higher capital allocations over time.
Valuation Premium Justified by Growth and ROE
Palomar trades at 3.79x book value versus Kinsale's 4.52x and RLI's 3.38x, with a forward P/E of 12.95, reflecting a growth-adjusted discount, based on current market data.
Palomar's P/B of 3.79 is below Kinsale's 4.52 but above RLI's 3.38, while its forward P/E of 12.95 is lower than all peers, suggesting the market is pricing in higher earnings growth (PEG of 0.19). The ROE of over 20% (annualized) is comparable to Kinsale's 29.1% and RLI's 24.4%, but Palomar's faster premium growth (56.4% YoY) and fee-based income stream may justify a premium to its own historical average. The discount to Kinsale likely reflects Palomar's smaller scale and higher catastrophe exposure, but the growth trajectory and capital-light model support the current multiple.
Combined Ratio Masks Reserve and Mix Risks
The combined ratio, while strong, may understate risk from long-tail casualty reserves and catastrophe volatility, as Palomar's shift to casualty lines introduces uncertainty not captured in short-tail property metrics, per company disclosures.
The combined ratio is the most commonly misapplied metric for Palomar because it is heavily influenced by reserve releases and the timing of ceding commissions. In Q2 2026, the loss ratio of 54.1% may include favorable prior-year development, which flatters the current accident-year performance. Additionally, the rapid growth in casualty lines means that reserve adequacy will not be known for years, and the combined ratio does not reflect the potential for adverse development. Investors should adjust for reserve releases and analyze the accident-year loss ratio, as well as monitor the net retention ratio, to assess true underwriting profitability.