Latest Ratios: P/E Ratio 13.1x · EV/EBITDA 9.9x · ROE 20.7%. (1996–2025 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 | $75.2B | $66.0B | $55.7B | $44.2B | $44.9B | $39.2B | $35.7B | $35.9B | $32.3B | $37.8B | $35.6B |
| Enterprise Value | $83.7B | $74.6B | $63.1B | $51.6B | $51.4B | $45.8B | $41.6B | $42.0B | $38.5B | $44.0B | $41.8B |
| P/E Ratio → | 13.14 | 10.57 | 11.22 | 14.89 | 15.93 | 10.80 | 13.34 | 13.81 | 12.81 | 18.50 | 11.91 |
| P/S Ratio | 1.54 | 1.35 | 1.20 | 1.07 | 1.22 | 1.13 | 1.12 | 1.14 | 1.07 | 1.31 | 1.29 |
| P/B Ratio | 2.49 | 2.01 | 2.00 | 1.77 | 2.08 | 1.36 | 1.22 | 1.38 | 1.41 | 1.59 | 1.53 |
| P/FCF | 7.09 | 6.22 | 6.14 | 5.74 | 6.95 | 5.39 | 5.48 | 6.90 | 7.38 | 9.11 | 7.97 |
| P/OCF | 7.09 | 6.22 | 6.14 | 5.74 | 6.95 | 5.39 | 5.48 | 6.90 | 7.38 | 9.11 | 7.97 |
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 | — | 1.53 | 1.36 | 1.25 | 1.39 | 1.31 | 1.30 | 1.33 | 1.27 | 1.52 | 1.51 |
| EV / EBITDA | 9.88 | 8.80 | 9.16 | 12.61 | 12.30 | 8.59 | 10.32 | 10.76 | 10.23 | 12.42 | 8.56 |
| EV / EBIT | 10.74 | 9.07 | 9.61 | 13.77 | 13.88 | 9.54 | 11.62 | 12.06 | 11.62 | 14.20 | 9.46 |
| EV / FCF | — | 7.03 | 6.96 | 6.69 | 7.96 | 6.29 | 6.38 | 8.07 | 8.79 | 10.61 | 9.34 |
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 | 29.4% | 29.4% | 26.7% | 21.6% | 23.1% | 27.2% | 25.3% | 24.8% | 25.1% | 25.2% | 31.0% |
| Operating Margin | 16.0% | 16.0% | 13.3% | 8.1% | 9.1% | 12.8% | 10.1% | 9.9% | 9.8% | 9.4% | 14.7% |
| Net Profit Margin | 12.9% | 12.9% | 10.8% | 7.2% | 7.7% | 10.5% | 8.4% | 8.3% | 8.3% | 7.1% | 10.9% |
| 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% | 18.9% | 12.9% | 11.3% | 12.6% | 9.8% | 10.7% | 10.8% | 8.8% | 12.9% |
| ROA | 4.5% | 4.5% | 3.9% | 2.5% | 2.4% | 3.1% | 2.4% | 2.4% | 2.4% | 2.0% | 3.0% |
| ROIC | 15.2% | 15.2% | 13.7% | 8.4% | 7.9% | 9.5% | 7.2% | 7.7% | 7.5% | 6.9% | 10.3% |
| ROCE | 16.5% | 16.5% | 14.3% | 8.6% | 8.7% | 5.8% | 3.0% | 2.9% | 3.0% | 2.8% | 4.3% |
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 | 0.28 | 0.28 | 0.29 | 0.32 | 0.34 | 0.25 | 0.22 | 0.25 | 0.29 | 0.28 | 0.28 |
| Debt / EBITDA | 1.09 | 1.09 | 1.17 | 1.96 | 1.74 | 1.37 | 1.63 | 1.68 | 1.74 | 1.85 | 1.32 |
| Net Debt / Equity | — | 0.26 | 0.27 | 0.30 | 0.30 | 0.23 | 0.20 | 0.23 | 0.27 | 0.26 | 0.26 |
| Net Debt / EBITDA | 1.01 | 1.01 | 1.08 | 1.80 | 1.55 | 1.23 | 1.45 | 1.55 | 1.64 | 1.76 | 1.26 |
| Debt / FCF | — | 0.81 | 0.82 | 0.96 | 1.00 | 0.90 | 0.89 | 1.17 | 1.41 | 1.50 | 1.37 |
| Interest Coverage | 19.34 | 19.34 | 16.77 | 9.97 | 10.56 | 14.11 | 10.55 | 10.12 | 9.41 | 8.40 | 12.17 |
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 | 0.55 | 0.55 | 1.26 | 1.41 | 1.22 | 1.35 | — | — | — | — | — |
| Quick Ratio | 0.55 | 0.55 | 1.26 | 1.41 | 1.22 | 1.35 | — | — | — | — | — |
| Cash Ratio | 0.28 | 0.28 | 0.99 | 1.08 | 0.94 | 1.07 | 17.38 | — | 11.95 | 12.03 | 12.09 |
| Asset Turnover | — | 0.34 | 0.35 | 0.33 | 0.32 | 0.29 | 0.27 | 0.29 | 0.29 | 0.28 | 0.28 |
| 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 | 1.2% | 1.5% | 1.7% | 2.1% | 1.9% | 2.2% | 2.4% | 2.3% | 2.5% | 2.1% | 2.1% |
| Payout Ratio | 15.6% | 15.6% | 19.0% | 30.4% | 30.8% | 23.7% | 31.9% | 32.2% | 32.3% | 38.2% | 25.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.6% | 9.5% | 8.9% | 6.7% | 6.3% | 9.3% | 7.5% | 7.2% | 7.8% | 5.4% | 8.4% |
| FCF Yield | 14.1% | 16.1% | 16.3% | 17.4% | 14.4% | 18.5% | 18.2% | 14.5% | 13.6% | 11.0% | 12.5% |
| Buyback Yield | 4.2% | 4.7% | 2.0% | 2.3% | 4.6% | 5.6% | 1.9% | 4.3% | 4.1% | 3.8% | 6.9% |
| Total Shareholder Yield | 5.4% | 6.2% | 3.7% | 4.4% | 6.5% | 7.8% | 4.3% | 6.7% | 6.6% | 5.9% | 9.1% |
| Shares Outstanding | — | $228M | $231M | $232M | $240M | $251M | $255M | $262M | $270M | $279M | $291M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying TRV stock.
The Travelers Companies, Inc.'s current P/E ratio is 13.1x. The historical average is 16.5x. This places it at the 66th percentile of its historical range.
The Travelers Companies, Inc.'s current EV/EBITDA is 9.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.9x.
The Travelers Companies, 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 11.3%.
Based on historical data, The Travelers Companies, Inc. is trading at a P/E of 13.1x. This is at the 66th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The Travelers Companies, Inc.'s current dividend yield is 1.19% with a payout ratio of 15.6%.
The Travelers Companies, Inc. has 29.4% gross margin and 16.0% operating margin. Operating margin between 10-20% is typical for established companies.
The Travelers Companies, Inc.'s Debt/EBITDA ratio is 1.1x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Reserve adequacy under social inflation
Metrics are mathematically derived from official filings.
Underwriting Margin Rebounding Sharply
Travelers' combined ratio improved from 96.0% in 2025Q1 to 76.3% in 2026Q2, per SEC filings, signaling a strong underwriting turnaround and robust profitability.
The 19.7-point improvement in the combined ratio over five quarters is driven by a loss ratio decline from 82.8% to 63.4%, while the expense ratio remained stable around 13%. This suggests that favorable prior-year reserve development, rather than operational efficiency, may be the primary driver, as the loss ratio improvement far exceeds typical pricing gains. Investors should monitor whether this trend persists, as social inflation could pressure reserves in future periods.
ROE Recovery Led by Underwriting
ROE rebounded from 1.4% in 2025Q1 to 6.8% in 2026Q2, as reported in financial statements, reflecting a sharp improvement in underwriting profitability.
The ROE recovery is closely tied to the underwriting margin, which swung from 4.0% to 23.7% over the same period. With investment income data unavailable, the contribution of investment yield to ROE remains unclear, but the underwriting segment appears to be the primary driver. The implied annualized ROE of over 27% in 2026Q2, if sustained, would justify the current P/B of 2.60, though such levels are historically exceptional and may not be durable.
Underwriting Leverage Moderate
Travelers' premium-to-surplus ratio appears moderate, with equity growing 32% over the last two years while liabilities rose only 5%, per balance sheet data.
The equity expansion from $25.0B to $33.1B, coupled with stable liabilities, suggests that underwriting leverage is declining, providing a stronger capital buffer. The D/E ratio of 0.27 and interest coverage of 25.49 indicate ample financial flexibility. This conservative leverage may support rating agency requirements and allow for continued capital returns, though the sustainability of reserve releases remains a key monitor.
Premium Valuation vs. Peers
Travelers trades at a P/B of 2.60, a premium to peers like Chubb (1.73) and Cincinnati (1.72), based on reported figures, reflecting its strong underwriting performance.
The P/B premium is supported by a trailing ROE that, while volatile, has averaged around 5% over the last ten quarters, below the peer average of roughly 17%. However, the recent underwriting margin improvement suggests that forward ROE could be higher, justifying the multiple. The forward P/E of 11.03 is in line with peers, indicating that the market expects continued earnings strength, but investors should watch for reserve development quality.
Combined Ratio Masking Reserve Releases
The combined ratio improvement may be overstated by favorable reserve development, as loss ratios fell 19.4 points in five quarters, per financial statements.
The sharp decline in loss ratios from 82.8% to 63.4% is unlikely to be driven solely by pricing and underwriting discipline; it likely reflects significant prior-year reserve releases. This can inflate current underwriting profitability and the combined ratio, obscuring the underlying accident-year performance. Investors should adjust for reserve development by analyzing the accident-year loss ratio, which would provide a clearer picture of underwriting quality and sustainability.