The Hanover Insurance Group, Inc. (THG) Financial Ratios
30 years of historical data (1996–2025) · Financial Services · Insurance - Property & Casualty
EV/EBITDA
↓
7.96
↓-76% vs avg
5yr avg: 32.98
30Y Low0.6·High45.9
P/FCF
↓
5.95
↓-22% vs avg
5yr avg: 7.59
30Y Low4.1·High94.1
P/B Ratio
↑
1.98
+8% vs avg
5yr avg: 1.84
30Y Low0.2·High2.1
ROE
↑
20.7%
↓+85% vs avg
5yr avg: 11.1%
30Y Low-15%·High21%
Debt/EBITDA
↓
1.37
↓-73% vs avg
5yr avg: 5.16
30Y Low0.1·High18.9
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
THG Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
The Hanover Insurance Group, Inc. trades at 10.7x earnings, 73% below its 5-year average of 40.1x, sitting at the 19th percentile of its historical range. Compared to the Financial Services sector median P/E of 13.6x, the stock trades at a discount of 21%. On a free-cash-flow basis, the stock trades at 6.0x P/FCF, 22% below the 5-year average of 7.6x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $7.0B | $6.5B | $5.6B | $4.4B | $4.9B | $4.8B | $4.5B | $5.5B | $5.0B | $4.6B | $3.9B |
| Enterprise Value | $7.1B | $6.6B | $6.0B | $4.9B | $5.4B | $5.3B | $5.1B | $6.0B | $4.8B | $5.1B | $4.4B |
| P/E Ratio → | 10.69 | 9.87 | 13.22 | 123.90 | 42.10 | 11.41 | 12.41 | 13.07 | 12.85 | 24.96 | 25.35 |
| P/S Ratio | 1.06 | 0.99 | 0.91 | 0.74 | 0.90 | 0.92 | 0.92 | 1.13 | 1.12 | 1.09 | 0.99 |
| P/B Ratio | 1.98 | 1.83 | 1.98 | 1.78 | 2.09 | 1.52 | 1.39 | 1.90 | 1.70 | 1.55 | 1.38 |
| P/FCF | 5.95 | 5.57 | 7.07 | 12.53 | 6.92 | 5.85 | 6.43 | 9.41 | 9.33 | 6.77 | 5.45 |
| P/OCF | 5.91 | 5.54 | 6.98 | 12.12 | 6.75 | 5.79 | 6.30 | 9.20 | 9.11 | 6.60 | 5.29 |
P/E links to full P/E history page with 30-year chart
THG EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
The Hanover Insurance Group, Inc.'s enterprise value stands at 8.0x EBITDA, 76% below its 5-year average of 33.0x. The Financial Services sector median is 11.4x, placing the stock at a 30% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.00 | 0.96 | 0.81 | 0.99 | 1.03 | 1.06 | 1.22 | 1.07 | 1.19 | 1.12 |
| EV / EBITDA | 7.96 | 7.46 | 11.09 | 102.33 | 34.13 | 9.89 | 11.05 | 11.01 | 15.56 | 15.66 | 45.87 |
| EV / EBIT | 8.37 | 7.46 | 10.45 | 64.50 | 30.07 | 9.58 | 10.61 | 10.70 | 14.59 | 14.96 | 37.78 |
| EV / FCF | — | 5.66 | 7.51 | 13.87 | 7.60 | 6.52 | 7.38 | 10.15 | 8.88 | 7.37 | 6.14 |
THG Profitability
Margins and return-on-capital ratios measuring operating efficiency
The Hanover Insurance Group, Inc. earns an operating margin of 12.8%, below the Financial Services sector average of 20.3%. Operating margins have expanded from 0.7% to 12.8% over the past 3 years, signaling improving operational efficiency. ROE of 20.7% indicates solid capital efficiency, compared to the sector median of 9.0%. ROIC of 18.5% represents solid returns on invested capital versus a sector median of 5.5%.
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 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 43.5% | 43.5% | 19.9% | 10.9% | 13.2% | 20.2% | 21.2% | 22.5% | 19.0% | 19.9% | 15.5% |
| Operating Margin | 12.8% | 12.8% | 8.7% | 0.7% | 2.7% | 10.1% | 9.2% | 10.7% | 6.3% | 6.9% | 1.7% |
| Net Profit Margin | 10.0% | 10.0% | 6.9% | 0.6% | 2.1% | 8.2% | 7.4% | 8.7% | 8.8% | 4.4% | 3.9% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 20.7% | 20.7% | 16.1% | 1.5% | 4.2% | 13.3% | 11.7% | 14.5% | 13.1% | 6.4% | 5.4% |
| ROA | 4.1% | 4.1% | 2.9% | 0.2% | 0.8% | 3.1% | 2.8% | 3.4% | 2.8% | 1.3% | 1.1% |
| ROIC | 18.5% | 18.5% | 13.2% | 1.1% | 3.3% | 10.3% | 9.2% | 12.9% | 6.9% | 6.5% | 1.5% |
| ROCE | 8.4% | 8.4% | 4.7% | 0.4% | 1.0% | 3.8% | 3.4% | 4.2% | 2.1% | 2.0% | 0.5% |
THG Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
The Hanover Insurance Group, Inc. carries a Debt/EBITDA ratio of 1.4x, which is manageable (68% below the sector average of 4.3x). Net debt stands at $96M ($1.2B total debt minus $1.1B cash). Interest coverage of 20.5x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.34 | 0.34 | 0.28 | 0.32 | 0.34 | 0.25 | 0.24 | 0.22 | 0.26 | 0.26 | 0.28 |
| Debt / EBITDA | 1.37 | 1.37 | 1.45 | 16.52 | 4.99 | 1.45 | 1.69 | 1.20 | 2.53 | 2.44 | 8.13 |
| Net Debt / Equity | — | 0.03 | 0.12 | 0.19 | 0.20 | 0.18 | 0.21 | 0.15 | -0.08 | 0.14 | 0.18 |
| Net Debt / EBITDA | 0.11 | 0.11 | 0.65 | 9.85 | 3.04 | 1.02 | 1.43 | 0.81 | -0.79 | 1.27 | 5.21 |
| Debt / FCF | — | 0.08 | 0.44 | 1.34 | 0.68 | 0.68 | 0.95 | 0.74 | -0.45 | 0.60 | 0.70 |
| Interest Coverage | 20.53 | 20.53 | 16.77 | 2.21 | 5.22 | 16.33 | 12.99 | 14.92 | 7.26 | 7.48 | 2.28 |
THG Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.62x is below 1.0, meaning current liabilities exceed current assets — though the company's $1.1B cash position helps mitigate short-term liquidity concerns. The current ratio has declined from 1.99x to 0.62x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.62 | 0.62 | 7.18 | 1.99 | 15.59 | 206.56 | — | — | — | — | — |
| Quick Ratio | 0.62 | 0.62 | 7.18 | 1.99 | 15.59 | 206.56 | — | — | — | — | — |
| Cash Ratio | 0.27 | 0.27 | 2.47 | 1.36 | 10.64 | 144.37 | — | — | 192.55 | 17.77 | 10.46 |
| Asset Turnover | — | 0.39 | 0.41 | 0.41 | 0.39 | 0.36 | 0.36 | 0.39 | 0.36 | 0.28 | 0.28 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
THG Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
The Hanover Insurance Group, Inc. returns 3.7% to shareholders annually — split between a 1.8% dividend yield and 1.9% buyback yield. The payout ratio of 19.7% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 9.4% (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 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.8% | 2.0% | 2.2% | 2.7% | 2.2% | 2.1% | 2.2% | 7.0% | 1.9% | 1.9% | 2.0% |
| Payout Ratio | 19.7% | 19.7% | 29.1% | 332.0% | 93.9% | 24.2% | 27.7% | 90.8% | 24.1% | 46.6% | 51.8% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.4% | 10.1% | 7.6% | 0.8% | 2.4% | 8.8% | 8.1% | 7.7% | 7.8% | 4.0% | 3.9% |
| FCF Yield | 16.8% | 17.9% | 14.1% | 8.0% | 14.4% | 17.1% | 15.6% | 10.6% | 10.7% | 14.8% | 18.4% |
| Buyback Yield | 1.9% | 2.0% | 0.5% | 0.0% | 0.6% | 3.4% | 4.8% | 10.2% | 1.1% | 0.8% | 2.7% |
| Total Shareholder Yield | 3.7% | 4.0% | 2.7% | 2.7% | 2.9% | 5.6% | 7.0% | 17.1% | 3.0% | 2.7% | 4.7% |
| Shares Outstanding | — | $36M | $36M | $36M | $36M | $36M | $38M | $41M | $43M | $43M | $43M |
Peer Comparison
Compare THG 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 |
|---|---|---|---|---|---|---|---|---|---|
 THGYou | $7B | 10.7 | 8.0 | 6.0 | 43.5% | 12.8% | 20.7% | 18.5% | 1.4 |
 CNA | $12B | 9.5 | 8.6 | 5.0 | 30.7% | 11.0% | 11.5% | 8.9% | 1.8 |
 HIG | $35B | 9.6 | 7.7 | 6.1 | 46.1% | 16.8% | 21.7% | 16.3% | 0.8 |
 WRB | $25B | 15.1 | 11.1 | 7.3 | 19.8% | 15.9% | 19.6% | 18.2% | 1.2 |
 CINF | $26B | 11.2 | 8.2 | 8.6 | 50.1% | 23.6% | 16.0% | 15.3% | 0.3 |
 ERIE | $10B | 20.8 | 12.4 | 17.9 | 15.8% | 17.7% | 26.2% | 29.5% | — |
 KMPR | $1B | 10.9 | 10.0 | 2.7 | 29.7% | 3.3% | 5.3% | 3.1% | 4.3 |
 TRV | $67B | 11.2 | 8.8 | — | 44.3% | 16.0% | 20.7% | 15.3% | 1.1 |
 CB | $126B | 12.6 | 10.9 | 8.7 | 29.4% | 21.8% | 13.9% | 10.8% | 1.7 |
 ALL | $57B | 5.8 | 4.7 | 5.8 | 33.2% | 19.8% | 39.6% | 29.8% | 0.5 |
 PGR | $120B | 14.2 | 11.5 | 8.1 | 27.7% | 14.2% | 37.0% | 27.0% | 0.6 |
| Financial Services Median | — | 13.6 | 11.4 | 11.1 | 64.1% | 20.3% | 9.0% | 5.5% | 4.3 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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THG — Frequently Asked Questions
Quick answers to the most common questions about buying THG stock.
What is The Hanover Insurance Group, Inc.'s P/E ratio?
The Hanover Insurance Group, Inc.'s current P/E ratio is 10.7x. The historical average is 24.3x. This places it at the 19th percentile of its historical range.
What is The Hanover Insurance Group, Inc.'s EV/EBITDA?
The Hanover Insurance Group, Inc.'s current EV/EBITDA is 8.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.4x.
What is The Hanover Insurance Group, Inc.'s ROE?
The Hanover Insurance Group, Inc.'s return on equity (ROE) is 20.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 6.8%.
Is THG stock overvalued?
Based on historical data, The Hanover Insurance Group, Inc. is trading at a P/E of 10.7x. This is at the 19th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is The Hanover Insurance Group, Inc.'s dividend yield?
The Hanover Insurance Group, Inc.'s current dividend yield is 1.85% with a payout ratio of 19.7%.
What are The Hanover Insurance Group, Inc.'s profit margins?
The Hanover Insurance Group, Inc. has 43.5% gross margin and 12.8% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does The Hanover Insurance Group, Inc. have?
The Hanover Insurance Group, Inc.'s Debt/EBITDA ratio is 1.4x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.