Latest Ratios: P/E Ratio 16.3x · EV/EBITDA 13.7x · ROE 7.4%. (2001–2025 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 | $3.3B | $2.6B | $2.6B | $2.2B | $2.2B | $2.3B | $1.7B | $2.0B | $1.7B | $1.9B | $1.9B |
| Enterprise Value | $3.4B | $2.7B | $1.5B | $1.6B | $1.4B | $-522554830 | $607M | $2.3B | $2.1B | $2.2B | $2.5B |
| P/E Ratio → | 16.32 | 15.10 | 15.84 | 14.45 | 11.86 | 10.64 | 11.68 | 14.49 | 12.74 | 21.81 | 28.18 |
| P/S Ratio | 4.58 | 3.53 | 3.70 | 3.20 | 3.26 | 3.38 | 2.57 | 3.57 | 3.21 | 4.28 | 5.06 |
| P/B Ratio | 1.14 | 1.05 | 1.19 | 1.08 | 1.19 | 1.20 | 0.95 | 1.21 | 1.11 | 1.68 | 1.74 |
| P/FCF | 15.71 | 12.10 | 31.60 | 18.96 | 6.16 | 4.70 | 20.69 | — | 5.75 | 15.03 | 11.32 |
| P/OCF | 12.72 | 9.80 | 18.52 | 13.77 | 5.39 | 4.42 | 13.28 | 194.73 | 5.38 | 13.60 | 10.21 |
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 | — | 3.69 | 2.19 | 2.28 | 2.04 | -0.77 | 0.92 | 4.15 | 3.98 | 4.90 | 6.63 |
| EV / EBITDA | 13.75 | 10.70 | 6.74 | 7.20 | 5.28 | -1.69 | 2.64 | 11.37 | 10.54 | 12.76 | 20.36 |
| EV / EBIT | 16.38 | 12.74 | 7.98 | 8.52 | 5.92 | -1.87 | 3.02 | 13.26 | 12.30 | 14.88 | 24.51 |
| EV / FCF | — | 12.66 | 18.74 | 13.54 | 3.86 | -1.07 | 7.40 | — | 7.13 | 17.21 | 14.81 |
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 | 69.6% | 69.6% | 67.6% | 71.8% | 91.2% | 96.6% | 80.2% | 82.3% | 85.4% | 90.0% | 90.0% |
| Operating Margin | 20.9% | 20.9% | 18.6% | 19.8% | 31.9% | 38.9% | 27.1% | 26.2% | 28.1% | 30.0% | 24.7% |
| Net Profit Margin | 16.8% | 16.8% | 15.8% | 16.3% | 25.4% | 29.9% | 19.6% | 20.6% | 21.8% | 17.8% | 16.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.4% | 7.4% | 7.7% | 7.8% | 9.9% | 11.6% | 8.5% | 8.7% | 10.0% | 7.9% | 7.1% |
| ROA | 0.9% | 0.9% | 0.9% | 0.9% | 1.2% | 1.4% | 1.1% | 1.2% | 1.4% | 1.1% | 0.9% |
| ROIC | 6.0% | 6.0% | 5.7% | 5.9% | 7.7% | 8.5% | 6.1% | 5.2% | 5.6% | 5.9% | 4.9% |
| ROCE | 4.7% | 4.7% | 6.7% | 6.9% | 9.1% | 9.8% | 7.2% | 6.6% | 7.2% | 7.5% | 6.2% |
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 | 0.15 | 0.15 | 0.14 | 0.24 | 0.17 | 0.25 | 0.43 | 0.47 | 0.71 | 0.70 | 0.66 |
| Debt / EBITDA | 1.48 | 1.48 | 1.32 | 2.23 | 1.20 | 1.56 | 3.35 | 3.76 | 5.45 | 4.64 | 5.93 |
| Net Debt / Equity | — | 0.05 | -0.48 | -0.31 | -0.44 | -1.47 | -0.61 | 0.20 | 0.26 | 0.24 | 0.54 |
| Net Debt / EBITDA | 0.47 | 0.47 | -4.62 | -2.88 | -3.14 | -9.12 | -4.74 | 1.60 | 2.03 | 1.61 | 4.80 |
| Debt / FCF | — | 0.56 | -12.86 | -5.43 | -2.30 | -5.77 | -13.29 | — | 1.37 | 2.18 | 3.49 |
| Interest Coverage | 0.74 | 0.74 | 0.57 | 0.75 | 4.19 | 6.81 | 2.52 | 1.61 | 2.13 | 3.36 | 2.82 |
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 | 0.10 | 0.10 | 0.10 | 0.23 | 0.22 | 0.37 | 0.28 | 0.20 | 0.21 | 0.21 | 0.16 |
| Quick Ratio | 0.10 | 0.10 | 0.10 | 0.23 | 0.22 | 0.37 | 0.28 | 0.20 | 0.21 | 0.21 | 0.16 |
| Cash Ratio | 0.02 | 0.02 | 0.09 | 0.08 | 0.09 | 0.24 | 0.16 | 0.05 | 0.08 | 0.08 | 0.02 |
| Asset Turnover | — | 0.05 | 0.06 | 0.06 | 0.05 | 0.04 | 0.05 | 0.06 | 0.05 | 0.06 | 0.05 |
| 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 | 2.9% | 3.1% | 2.9% | 3.2% | 2.8% | 2.4% | 3.1% | 2.5% | 2.6% | 1.8% | 1.6% |
| Payout Ratio | 46.8% | 46.8% | 46.4% | 46.4% | 33.2% | 25.7% | 35.9% | 35.6% | 33.5% | 39.3% | 45.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.1% | 6.6% | 6.3% | 6.9% | 8.4% | 9.4% | 8.6% | 6.9% | 7.8% | 4.6% | 3.5% |
| FCF Yield | 6.4% | 8.3% | 3.2% | 5.3% | 16.2% | 21.3% | 4.8% | — | 17.4% | 6.7% | 8.8% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.9% | 3.1% | 2.9% | 3.2% | 2.8% | 2.4% | 3.1% | 2.5% | 2.6% | 1.8% | 1.6% |
| Shares Outstanding | — | $77M | $75M | $75M | $73M | $73M | $72M | $72M | $71M | $62M | $57M |
Includes 30+ ratios · 25 years · Updated daily
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Quick answers to the most common questions about buying TOWN stock.
TowneBank's current P/E ratio is 16.3x. The historical average is 20.8x. This places it at the 48th percentile of its historical range.
TowneBank's current EV/EBITDA is 13.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.3x.
TowneBank's return on equity (ROE) is 7.4%. The historical average is 8.2%.
Based on historical data, TowneBank is trading at a P/E of 16.3x. This is at the 48th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
TowneBank's current dividend yield is 2.86% with a payout ratio of 46.8%.
TowneBank has 69.6% gross margin and 20.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
TowneBank's Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Fee income volatility concentration
Premium Priced for Diversified Franchise
At 1.18x book and 16.96x trailing earnings, TOWN trades at a modest premium to peers like UBSI (1.22x) and FULT (1.24x), per reported figures, reflecting its diversified fee streams.
The forward P/E of 11.93 implies the market expects a significant earnings rebound from the depressed 2026Q1 levels, likely driven by the one-time gain in Q2. The P/B of 1.18 is in line with regional peers, suggesting the market does not fully credit the insurance and realty intangibles, which may be undervalued in tangible book. Investors should monitor whether the premium is justified by recurring fee income or if it relies on non-recurring items.
ROE Depressed by Fee Volatility
ROE averaged 2.0% over the last four quarters, well below peers like WSFS (11.8%) and NBTB (11.3%), according to reported data, indicating a structural profitability gap.
The DuPont decomposition shows ROA of 0.2-0.3% is the primary drag, as NIM of 0.8% is far below the typical regional bank, while leverage (equity/assets at 13%) is conservative. The 2026Q2 ROE spike to 6.5% is driven by a non-recurring gain in non-interest income, not core operations, as evidenced by the fee percentage jumping to 47.6% from 3.9% in Q1. This suggests the underlying earnings power is closer to a 1.5-2% ROE, which may not support the current valuation without a sustained improvement in NIM.
NIM Stagnant Despite Volume Growth
Net interest margin has remained flat at 0.8% for three consecutive quarters, per the latest financial statements, indicating that asset yield expansion is fully offset by rising funding costs.
The efficiency ratio improved to 33.7% in 2026Q2, but this is misleading as it reflects the one-time fee spike; excluding that, the ratio would be closer to 50%, consistent with prior quarters. The flat NIM suggests the bank is not benefiting from the higher rate environment, likely due to competitive deposit pricing in its expansion markets. This implies that loan growth is not translating into margin expansion, a key concern for profitability going forward.
Conservative Leverage Limits ROE
Equity-to-assets ratio of 13% is higher than peers like FULT (11%) and WSFS (11%), as reported, indicating a fortress balance sheet but also under-utilized leverage.
The low debt-to-equity of 0.15% suggests minimal reliance on wholesale funding, which is a strength in times of stress but also caps ROE potential. With capital ratios stable despite 23% asset growth, the bank appears well-positioned to support further expansion, but the conservative stance may be a deliberate choice to protect against the volatility of its fee businesses. Investors should monitor whether management will increase leverage to boost returns or maintain this buffer.
Credit Quality Benign but Coastal Risks Loom
Provision for loan losses was just $625K in 2026Q2, down from $15.3M in 2025Q3, per the latest income statement, indicating stable credit conditions in core markets.
The minimal provisions suggest that the loan book is performing well, but the bank's concentration in coastal real estate and vacation rental markets introduces idiosyncratic risks that may not be captured in current reserves. The allowance for credit losses may need to be scrutinized for adequacy given potential climate-related insurance costs and regulatory changes. While current charge-offs appear low, the cyclicality of the realty segment could lead to a sudden deterioration if the housing market weakens.
P/E Misleading Due to Fee Spikes
The trailing P/E of 16.96 is distorted by the one-time $236.7M non-interest income gain in 2026Q2, as reported, which inflates earnings and understates the true valuation.
A more appropriate metric for TOWN is P/B or P/TBV, which at 1.18x and 1.65x (based on tangible book of $22.67) provides a cleaner picture of value. The P/E is also misleading because the fee income is highly volatile, as seen in the swing from $10.1M in Q1 to $236.7M in Q2, making normalized earnings difficult to estimate. Investors should use a normalized P/E that excludes non-recurring items, or focus on P/TBV, to assess the bank's true valuation relative to peers.