Root, Inc. (ROOT) P/E Ratio History
UndervaluedTrading at 23.2x vs 5Y avg 30.2x · 17th percentile · Below historical baseline · Data 2024–2026
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P/E Ratio Analysis
As of June 21, 2026, Root, Inc. (ROOT) trades at a price-to-earnings ratio of 23.2x, with a stock price of $51.99 and trailing twelve-month earnings per share of $3.36.
The current P/E is 23% below its 5-year average of 30.2x. Over the past five years, ROOT's P/E has ranged from a low of 13.2x to a high of 42.5x, placing the current valuation at the 17th percentile of its historical range.
Compared to the Financial Services sector median P/E of 13.6x, ROOT trades at a 71% premium to its sector peers. The sector includes 783 companies with P/E ratios ranging from 0.0x to 196.5x.
Relative to the broader market, ROOT trades roughly in line with the S&P 500 median P/E of 24.4x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our ROOT DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
ROOT Cross-Benchmark Valuation
How does the current P/E compare to sector peers and the broader market?
ROOT P/E vs Peers
Personal auto and homeowners insurers peers sorted by market cap
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $676M | 11.7 | - | +235%Best | |
| $120B | 14.2 | 0.86 | +119% | |
| $1B | 10.5 | - | +40% | |
| $1B | 10.9 | - | -53% | |
| $10B | 20.8 | 1.53 | -7% | |
| $32B | 7.8Lowest | 0.28Best | +4% | |
| $7B | 14.3 | 0.35 | +22% | |
| $2B | 278.0 | - | +112% |
Lower P/E can signal a discount or weaker growth expectations; PEG adds growth context.
ROOT Historical P/E Data (2024–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Period End | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q1 | - | $44.17 | $3.34 | 13.2x | -56% |
| FY2025 Q4 | Dec 31 2025 | $72.23 | $2.32 | 31.1x | +3% |
| FY2025 Q3 | - | $89.51 | $3.31 | 27.0x | -10% |
| FY2025 Q2 | Jun 30 2025 | $127.97 | $5.01 | 25.5x | -15% |
| FY2025 Q1 | Mar 31 2025 | $133.44 | $3.20 | 41.7x | +38% |
| FY2024 Q4 | - | $72.59 | $1.71 | 42.5x | +41% |
Average P/E for displayed period: 30.2x
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Historical Returns
2+ years return with dividends reinvested.
DCA Calculator
See how regular investing compounds over time.
Peer Comparison
Compare growth, multiples, and margins vs sector.
ROOT — Frequently Asked Questions
Quick answers to the most common questions about buying ROOT stock.
What is ROOT's P/E ratio?
Root, Inc. (ROOT) trailing twelve-month P/E ratio is 23.2x, based on TTM diluted EPS of $3.36. The 5-year average P/E is 30.2x and the historical range spans 13.2x to 42.5x.
Is ROOT stock overvalued or undervalued?
ROOT trades at 23.2x P/E, below its 5-year average of 30.2x. At the 17th percentile of its historical range (13.2x–42.5x), the stock is priced at a discount to its own history.
Is ROOT stock expensive?
No, ROOT is not expensive on a historical basis. The current P/E of 23.2x is below the 5-year average of 30.2x and sits at the 17th percentile of its valuation range.
What is ROOT's historical P/E range?
Over the past 5 years, ROOT's P/E ratio has ranged from 13.2x to 42.5x, with a median of 31.1x and an average of 30.2x. The current P/E of 23.2x places the stock at the 17th percentile of this range. Full historical data spans 2024–2026.
How does ROOT's P/E compare to the S&P 500?
ROOT trades at 23.2x P/E versus the S&P 500 median of 24.4x. The 5% discount to the market suggests lower growth expectations or perceived higher risk.
How does ROOT's valuation compare to Financial Services peers?
Root, Inc. P/E of 23.2x compares to the Financial Services sector median of 13.6x. The premium reflects expected growth above peers or stronger fundamentals. See the peer comparison table on this page for ticker-by-ticker P/E and PEG.
What is ROOT's PEG ratio?
ROOT PEG ratio is N/A, based on a P/E of 23.2x and EPS growth of 22.4%. PEG normalises P/E by growth and helps compare stocks with different earnings trajectories.
What is ROOT's earnings yield?
ROOT earnings yield is 4.31%, the inverse of its 23.2x P/E ratio. Earnings yield represents the percentage of each dollar invested that the company earns. It can be compared directly to bond yields to assess relative attractiveness of stocks versus fixed income.