Root, Inc. (ROOT) Financial Ratios
8 years of historical data (2018–2025) · Financial Services · Insurance - Property & Casualty
EV/EBITDA
↓
5.38
↓-67% vs avg
5yr avg: 16.21
30Y Low14.3·High18.1
P/FCF
↓
4.01
↓-39% vs avg
5yr avg: 6.56
30Y Low6.5·High6.7
P/B Ratio
↑
2.39
↑+34% vs avg
5yr avg: 1.78
30Y Low0.2·High3.9
ROE
↑
11.3%
↓+140% vs avg
5yr avg: -28.4%
30Y Low-207%·High11%
Debt/EBITDA
↓
3.83
↓-7% vs avg
5yr avg: 4.12
30Y Low3.8·High4.4
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
ROOT Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Root, Inc. trades at 24.6x earnings, 32% below its 5-year average of 36.0x, sitting at the 0th percentile of its historical range. Compared to the Financial Services sector median P/E of 13.4x, the stock trades at a premium of 84%. On a free-cash-flow basis, the stock trades at 4.0x P/FCF, 39% below the 5-year average of 6.6x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $772M | $1.2B | $1.2B | $151M | $63M | $773M | $3.9B | — | — |
| Enterprise Value | $283M | $754M | $829M | $-229488000 | $-401191000 | $80M | $3.0B | — | — |
| P/E Ratio → | 24.58 | 32.25 | 39.67 | — | — | — | — | — | — |
| P/S Ratio | 0.51 | 0.82 | 1.04 | 0.33 | 0.20 | 2.24 | 11.32 | — | — |
| P/B Ratio | 2.39 | 3.13 | 3.89 | 0.54 | 0.16 | 1.19 | 3.80 | — | — |
| P/FCF | 4.01 | 6.46 | 6.67 | — | — | — | — | — | — |
| P/OCF | 3.74 | 6.02 | 6.27 | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
ROOT EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Root, Inc.'s enterprise value stands at 5.4x EBITDA, 67% below its 5-year average of 16.2x. The Financial Services sector median is 11.4x, placing the stock at a 53% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.50 | 0.70 | -0.50 | -1.29 | 0.23 | 8.62 | — | — |
| EV / EBITDA | 5.38 | 14.33 | 18.10 | — | — | — | — | — | — |
| EV / EBIT | 6.94 | 12.20 | 11.34 | — | — | — | — | — | — |
| EV / FCF | — | 3.92 | 4.51 | — | — | — | — | — | — |
ROOT Profitability
Margins and return-on-capital ratios measuring operating efficiency
Root, Inc. earns an operating margin of 2.7%, below the Financial Services sector average of 21.2%. Operating margins have expanded from -32.4% to 2.7% over the past 3 years, signaling improving operational efficiency. ROE of 11.3% is modest.
Margins
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 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 25.5% | 25.5% | 28.7% | 16.7% | -10.4% | -15.0% | -4.1% | -28.8% | -24.0% |
| Operating Margin | 2.7% | 2.7% | 2.6% | -32.4% | -95.8% | -150.9% | -104.7% | -97.3% | -159.6% |
| Net Profit Margin | 2.7% | 2.7% | 2.6% | -32.4% | -95.8% | -150.9% | -104.7% | -97.3% | -159.6% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.3% | 11.3% | 10.4% | -44.2% | -57.4% | -62.0% | -59.6% | -206.7% | -79.5% |
| ROA | 2.8% | 2.8% | 2.5% | -13.0% | -27.6% | -40.3% | -32.8% | -64.7% | -36.9% |
| ROIC | — | — | — | — | — | -1500.3% | -943.7% | — | — |
| ROCE | 3.8% | 3.8% | 3.2% | -15.0% | -29.7% | -44.1% | -39.5% | -92.4% | -45.3% |
ROOT Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Root, Inc. carries a Debt/EBITDA ratio of 3.8x, which is moderately leveraged (7% below the sector average of 4.1x). The company holds a net cash position — cash of $690M exceeds total debt of $201M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of just 2.9x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.51 | 0.51 | 0.64 | 1.08 | 0.77 | 0.02 | 0.17 | 1.03 | 0.17 |
| Debt / EBITDA | 3.83 | 3.83 | 4.42 | — | — | — | — | — | — |
| Net Debt / Equity | — | -1.23 | -1.26 | -1.37 | -1.19 | -1.07 | -0.91 | -1.21 | -1.24 |
| Net Debt / EBITDA | -9.29 | -9.29 | -8.69 | — | — | — | — | — | — |
| Debt / FCF | — | -2.54 | -2.16 | — | — | — | — | — | — |
| Interest Coverage | 2.94 | 2.94 | 1.73 | -2.20 | -7.60 | -25.05 | -3.67 | -11.66 | -75.78 |
Net cash position: cash ($690M) exceeds total debt ($201M)
ROOT Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Root, Inc.'s current ratio of 2.62x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The current ratio has declined from 3.89x to 2.62x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.62 | 2.62 | 2.74 | 3.89 | 13.36 | 10.23 | 8.65 | 2.37 | 4.56 |
| Quick Ratio | 2.62 | 2.62 | 2.74 | 3.89 | 13.36 | 10.23 | 8.65 | 2.37 | 4.56 |
| Cash Ratio | 1.77 | 1.77 | 1.81 | 2.85 | 11.65 | 8.46 | 7.75 | 1.83 | 3.54 |
| Asset Turnover | — | 0.99 | 0.89 | 0.39 | 0.29 | 0.32 | 0.23 | 0.42 | 0.23 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — |
ROOT Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Root, Inc. does not currently pay a dividend and has no material buyback yield, reinvesting earnings back into the business. The earnings yield of 4.1% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.1% | 3.1% | 2.5% | — | — | — | — | — | — |
| FCF Yield | 24.9% | 15.5% | 15.0% | — | — | — | — | — | — |
| 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 | — | $17M | $17M | $14M | $14M | $14M | $14M | $14M | $2M |
Peer Comparison
Compare ROOT with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 ROOTYou | $772M | 24.6 | 5.4 | 4.0 | 25.5% | 2.7% | 11.3% | — | 3.8 |
 LMND | $4B | -23.0 | — | — | 40.3% | -21.8% | -29.4% | -36.8% | — |
 HIPO | $713M | 12.3 | 8.1 | 78.4 | 50.9% | 13.5% | 14.4% | 22.8% | 0.8 |
 OSCR | $5B | -11.7 | — | 4.9 | 14.4% | -3.4% | -44.4% | — | — |
 PGR | $115B | 13.7 | 11.1 | 7.8 | 27.7% | 14.2% | 37.0% | 27.0% | 0.6 |
 SAFT | $1B | 11.1 | 8.4 | 5.7 | 36.4% | 10.1% | 11.5% | 11.2% | 0.5 |
 KMPR | $2B | 14.3 | 11.9 | 3.5 | 29.7% | 3.3% | 5.3% | 3.1% | 4.3 |
 ERIE | $10B | 20.1 | 12.0 | 17.3 | 15.8% | 17.7% | 26.2% | 29.5% | — |
 ACGL | $34B | 8.1 | 6.9 | 5.5 | 37.2% | 25.0% | 19.5% | 15.4% | 0.5 |
 KNSL | $7B | 14.0 | 11.1 | 7.1 | 52.5% | 33.8% | 29.3% | 26.6% | 0.4 |
 VERX | $2B | 316.1 | 23.1 | 29.1 | 60.7% | -1.0% | 3.3% | -2.2% | 4.0 |
| Financial Services Median | — | 13.4 | 11.4 | 10.6 | 63.4% | 21.2% | 9.4% | 5.7% | 4.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 8 years · Updated daily
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Start ComparisonROOT — Frequently Asked Questions
Quick answers to the most common questions about buying ROOT stock.
What is Root, Inc.'s P/E ratio?
Root, Inc.'s current P/E ratio is 24.6x. The historical average is 36.0x.
What is Root, Inc.'s EV/EBITDA?
Root, Inc.'s current EV/EBITDA is 5.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.2x.
What is Root, Inc.'s ROE?
Root, Inc.'s return on equity (ROE) is 11.3%. The historical average is -61.0%.
Is ROOT stock overvalued?
Based on historical data, Root, Inc. is trading at a P/E of 24.6x. Compare with industry peers and growth rates for a complete picture.
What are Root, Inc.'s profit margins?
Root, Inc. has 25.5% gross margin and 2.7% operating margin.
How much debt does Root, Inc. have?
Root, Inc.'s Debt/EBITDA ratio is 3.8x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.