Toll Brothers, Inc. (TOL) Financial Ratios
30 years of historical data (1996–2025) · Consumer Cyclical · Residential Construction
EV/EBITDA
↓
8.36
+19% vs avg
5yr avg: 7.02
30Y Low4.5·High82.4
P/FCF
↑
13.07
↑+37% vs avg
5yr avg: 9.55
30Y Low4.5·High131.0
P/B Ratio
↑
1.71
↑+21% vs avg
5yr avg: 1.41
30Y Low0.8·High2.2
ROE
↑
16.9%
-15% vs avg
5yr avg: 19.8%
30Y Low-26%·High34%
Debt/EBITDA
↓
1.62
↓-22% vs avg
5yr avg: 2.06
30Y Low1.4·High26.2
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
TOL Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Toll Brothers, Inc. trades at 10.5x earnings, 36% above its 5-year average of 7.7x, sitting at the 56th percentile of its historical range. Compared to the Consumer Cyclical sector median P/E of 19.6x, the stock trades at a discount of 47%. On a free-cash-flow basis, the stock trades at 13.1x P/FCF, 37% above the 5-year average of 9.5x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $13.4B | $13.5B | $15.3B | $7.8B | $5.1B | $7.6B | $5.5B | $5.8B | $5.2B | $7.8B | $4.8B |
| Enterprise Value | $15.1B | $15.1B | $17.0B | $9.5B | $7.2B | $9.7B | $8.4B | $8.5B | $7.7B | $10.3B | $8.0B |
| P/E Ratio → | 10.50 | 10.00 | 9.76 | 5.72 | 3.95 | 9.08 | 12.44 | 9.87 | 6.94 | 14.52 | 12.59 |
| P/S Ratio | 1.22 | 1.23 | 1.41 | 0.79 | 0.49 | 0.86 | 0.78 | 0.81 | 0.73 | 1.34 | 0.93 |
| P/B Ratio | 1.71 | 1.63 | 1.99 | 1.15 | 0.84 | 1.42 | 1.13 | 1.14 | 1.09 | 1.72 | 1.14 |
| P/FCF | 13.07 | 13.12 | 16.37 | 6.58 | 5.55 | 6.12 | 6.18 | 16.61 | 9.04 | 8.38 | 40.12 |
| P/OCF | 12.06 | 12.10 | 15.18 | 6.20 | 5.15 | 5.81 | 5.50 | 13.31 | 8.62 | 8.13 | 32.46 |
P/E links to full P/E history page with 30-year chart
TOL EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Toll Brothers, Inc.'s enterprise value stands at 8.4x EBITDA, 19% above its 5-year average of 7.0x. The Consumer Cyclical sector median is 11.4x, placing the stock at a 26% 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 | — | 1.38 | 1.57 | 0.95 | 0.70 | 1.11 | 1.18 | 1.17 | 1.08 | 1.77 | 1.54 |
| EV / EBITDA | 8.36 | 8.39 | 8.01 | 5.29 | 4.54 | 8.87 | 13.54 | 11.24 | 9.50 | 15.38 | 15.53 |
| EV / EBIT | 8.76 | 8.48 | 8.33 | 5.53 | 4.78 | 9.53 | 13.80 | 11.70 | 8.25 | 15.79 | 16.00 |
| EV / FCF | — | 14.74 | 18.14 | 7.99 | 7.87 | 7.87 | 9.33 | 24.13 | 13.42 | 11.08 | 66.23 |
TOL Profitability
Margins and return-on-capital ratios measuring operating efficiency
Toll Brothers, Inc. earns an operating margin of 15.7%, above the Consumer Cyclical sector average of 2.9%. Operating margins have compressed from 17.3% to 15.7% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 16.9% indicates solid capital efficiency, compared to the sector median of 5.8%. ROIC of 13.4% represents solid returns on invested capital versus a sector median of 5.8%.
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 | 26.0% | 26.0% | 27.9% | 26.4% | 24.2% | 22.1% | 20.0% | 19.6% | 20.6% | 21.5% | 19.8% |
| Operating Margin | 15.7% | 15.7% | 18.8% | 17.3% | 14.7% | 11.6% | 7.8% | 9.4% | 11.0% | 11.1% | 9.5% |
| Net Profit Margin | 12.3% | 12.3% | 14.5% | 13.7% | 12.5% | 9.5% | 6.3% | 8.2% | 10.5% | 9.2% | 7.4% |
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 | 16.9% | 16.9% | 21.7% | 21.4% | 22.6% | 16.2% | 8.9% | 11.9% | 16.1% | 12.2% | 9.0% |
| ROA | 9.7% | 9.7% | 12.1% | 11.1% | 10.8% | 7.4% | 4.1% | 5.6% | 7.6% | 5.6% | 4.0% |
| ROIC | 13.4% | 13.4% | 17.2% | 15.5% | 14.5% | 10.0% | 5.3% | 6.8% | 8.2% | 6.7% | 5.1% |
| ROCE | 15.5% | 15.5% | 19.6% | 17.5% | 15.9% | 11.0% | 6.0% | 7.6% | 9.5% | 8.0% | 6.0% |
TOL Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Toll Brothers, Inc. carries a Debt/EBITDA ratio of 1.6x, which is manageable (62% below the sector average of 4.3x). Net debt stands at $1.7B ($2.9B total debt minus $1.3B cash).
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.35 | 0.35 | 0.39 | 0.44 | 0.58 | 0.71 | 0.85 | 0.77 | 0.78 | 0.71 | 0.89 |
| Debt / EBITDA | 1.62 | 1.62 | 1.40 | 1.66 | 2.19 | 3.46 | 6.80 | 5.21 | 4.56 | 4.80 | 7.36 |
| Net Debt / Equity | — | 0.20 | 0.22 | 0.25 | 0.35 | 0.40 | 0.58 | 0.51 | 0.53 | 0.55 | 0.74 |
| Net Debt / EBITDA | 0.92 | 0.92 | 0.78 | 0.94 | 1.34 | 1.97 | 4.58 | 3.50 | 3.10 | 3.74 | 6.12 |
| Debt / FCF | — | 1.61 | 1.77 | 1.41 | 2.32 | 1.74 | 3.16 | 7.51 | 4.38 | 2.69 | 26.11 |
| Interest Coverage | — | — | — | — | — | — | 225.52 | — | — | — | — |
TOL Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Toll Brothers, Inc.'s current ratio of 4.17x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 0.59x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 4.28x to 4.17x 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 | 4.17 | 4.17 | 4.61 | 4.28 | 4.12 | 4.40 | 5.22 | 6.07 | 5.78 | 5.56 | 5.50 |
| Quick Ratio | 0.59 | 0.59 | 0.74 | 0.68 | 0.73 | 0.93 | 1.05 | 1.17 | 1.08 | 0.83 | 0.87 |
| Cash Ratio | 0.41 | 0.41 | 0.52 | 0.52 | 0.52 | 0.72 | 0.75 | 0.80 | 0.73 | 0.46 | 0.40 |
| Asset Turnover | — | 0.76 | 0.81 | 0.80 | 0.84 | 0.76 | 0.64 | 0.67 | 0.70 | 0.62 | 0.53 |
| Inventory Turnover | 0.73 | 0.73 | 0.81 | 0.81 | 0.89 | 0.87 | 0.74 | 0.74 | 0.75 | 0.63 | 0.56 |
| Days Sales Outstanding | — | 5.26 | 5.07 | 4.97 | 3.64 | 3.50 | 9.75 | 11.91 | 11.41 | 15.89 | 17.75 |
TOL Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Toll Brothers, Inc. returns 5.5% to shareholders annually — split between a 0.7% dividend yield and 4.9% buyback yield. The payout ratio of 7.2% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 9.5% (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 | 0.7% | 0.7% | 0.6% | 1.2% | 1.7% | 1.0% | 1.0% | 1.1% | 1.2% | 0.5% | — |
| Payout Ratio | 7.2% | 7.2% | 5.9% | 6.6% | 6.9% | 9.2% | 12.7% | 10.8% | 8.2% | 7.2% | — |
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 | 9.5% | 10.0% | 10.2% | 17.5% | 25.3% | 11.0% | 8.0% | 10.1% | 14.4% | 6.9% | 7.9% |
| FCF Yield | 7.6% | 7.6% | 6.1% | 15.2% | 18.0% | 16.3% | 16.2% | 6.0% | 11.1% | 11.9% | 2.5% |
| Buyback Yield | 4.9% | 4.8% | 4.1% | 7.2% | 10.7% | 5.0% | 11.4% | 4.0% | 9.7% | 3.7% | 8.1% |
| Total Shareholder Yield | 5.5% | 5.6% | 4.7% | 8.3% | 12.4% | 6.0% | 12.4% | 5.1% | 10.9% | 4.2% | 8.1% |
| Shares Outstanding | — | $100M | $105M | $111M | $118M | $126M | $131M | $147M | $154M | $169M | $176M |
Peer Comparison
Compare TOL 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 |
|---|---|---|---|---|---|---|---|---|---|
 TOLYou | $13B | 10.5 | 8.4 | 13.1 | 26.0% | 15.7% | 16.9% | 13.4% | 1.6 |
 DHI | $43B | 12.9 | 10.2 | 13.2 | 23.7% | 12.9% | 14.2% | 12.1% | 1.3 |
 LEN | $20B | 11.3 | 7.6 | 693.2 | 17.7% | 8.0% | 8.2% | 7.9% | 2.2 |
 PHM | $23B | 10.8 | 7.5 | 13.2 | 26.4% | 17.3% | 17.7% | 17.2% | 0.8 |
 NVR | $17B | 14.0 | 9.0 | 15.4 | 23.0% | 16.2% | 33.2% | 43.8% | 0.7 |
 MHO | $3B | 8.9 | 7.2 | 28.1 | 23.0% | 11.5% | 13.2% | 11.3% | 2.1 |
 SKY | $4B | 22.2 | 13.2 | 22.1 | 26.2% | 9.5% | 13.4% | 16.9% | 0.5 |
 KBH | $3B | 8.1 | 8.2 | 10.8 | 18.9% | 8.4% | 10.8% | 7.4% | 3.1 |
 TPH | $4B | 17.3 | 11.7 | 31.1 | 22.0% | 9.7% | 7.2% | 7.2% | 3.5 |
 TMHC | $6B | 7.8 | 6.3 | 7.0 | 23.0% | 14.0% | 12.8% | 11.0% | 2.1 |
 CCS | $2B | 11.2 | 7.1 | 12.7 | 21.4% | 9.2% | 5.7% | 7.2% | 3.6 |
| Consumer Cyclical Median | — | 19.6 | 11.4 | 14.9 | 37.9% | 2.9% | 5.8% | 5.8% | 4.3 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Full TOL Stock Analysis
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Start ComparisonTOL — Frequently Asked Questions
Quick answers to the most common questions about buying TOL stock.
What is Toll Brothers, Inc.'s P/E ratio?
Toll Brothers, Inc.'s current P/E ratio is 10.5x. The historical average is 16.6x. This places it at the 56th percentile of its historical range.
What is Toll Brothers, Inc.'s EV/EBITDA?
Toll Brothers, Inc.'s current EV/EBITDA is 8.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.3x.
What is Toll Brothers, Inc.'s ROE?
Toll Brothers, Inc.'s return on equity (ROE) is 16.9%. The historical average is 13.6%.
Is TOL stock overvalued?
Based on historical data, Toll Brothers, Inc. is trading at a P/E of 10.5x. This is at the 56th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Toll Brothers, Inc.'s dividend yield?
Toll Brothers, Inc.'s current dividend yield is 0.69% with a payout ratio of 7.2%.
What are Toll Brothers, Inc.'s profit margins?
Toll Brothers, Inc. has 26.0% gross margin and 15.7% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Toll Brothers, Inc. have?
Toll Brothers, Inc.'s Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.