Latest Ratios: P/E Ratio 13.1x · EV/EBITDA 10.8x · ROE 10.8%. (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 | $12.6B | $10.1B | $9.4B | $8.8B | $8.0B | $5.0B | $3.8B | $4.9B | $4.5B | $5.2B | $5.0B |
| Enterprise Value | $14.4B | $12.0B | $10.7B | $11.0B | $14.8B | $6.0B | $5.4B | $8.3B | $6.9B | $7.5B | $8.8B |
| P/E Ratio → | 13.13 | 10.65 | 12.64 | 10.34 | 12.73 | 12.63 | 17.94 | 13.14 | 12.94 | 21.03 | 25.13 |
| P/S Ratio | 4.33 | 3.49 | 3.64 | 3.32 | 3.23 | 4.12 | 3.23 | 3.95 | 3.82 | 4.91 | 5.07 |
| P/B Ratio | 1.31 | 1.06 | 1.03 | 1.01 | 0.99 | 1.46 | 1.17 | 1.53 | 1.57 | 1.92 | 1.97 |
| P/FCF | 12.46 | 10.02 | 6.87 | 9.38 | 6.12 | 7.50 | 10.58 | 17.63 | 10.42 | 12.46 | 13.95 |
| P/OCF | 11.88 | 9.55 | 6.69 | 8.99 | 5.99 | 7.32 | 9.99 | 16.14 | 9.68 | 11.66 | 12.52 |
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 | — | 4.13 | 4.14 | 4.13 | 6.00 | 4.88 | 4.60 | 6.73 | 5.76 | 7.08 | 8.94 |
| EV / EBITDA | 10.83 | 8.98 | 9.82 | 9.43 | 16.87 | 10.37 | 16.76 | 15.71 | 14.26 | 19.12 | 25.84 |
| EV / EBIT | 11.46 | 9.50 | 10.51 | 10.10 | 18.60 | 11.18 | 19.34 | 17.15 | 15.51 | 21.13 | 28.95 |
| EV / FCF | — | 11.87 | 7.81 | 11.67 | 11.35 | 8.88 | 15.07 | 30.02 | 15.70 | 17.95 | 24.58 |
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 | 60.8% | 60.8% | 56.5% | 63.4% | 80.5% | 101.0% | 80.7% | 83.5% | 85.8% | 86.5% | 85.3% |
| Operating Margin | 28.5% | 28.5% | 24.4% | 27.5% | 29.3% | 42.2% | 21.7% | 33.8% | 33.0% | 30.2% | 27.9% |
| Net Profit Margin | 22.7% | 22.7% | 18.4% | 22.0% | 23.7% | 32.3% | 17.1% | 26.6% | 26.9% | 21.8% | 19.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.8% | 10.8% | 8.6% | 10.4% | 11.2% | 12.3% | 6.8% | 12.6% | 12.9% | 9.8% | 8.4% |
| ROA | 1.2% | 1.2% | 1.0% | 1.2% | 1.2% | 1.2% | 0.7% | 1.3% | 1.3% | 1.0% | 0.8% |
| ROIC | 7.2% | 7.2% | 6.1% | 5.7% | 5.8% | 8.1% | 3.5% | 5.9% | 6.2% | 4.5% | 3.5% |
| ROCE | 10.7% | 10.7% | 8.8% | 8.4% | 8.6% | 13.2% | 5.6% | 9.0% | 9.3% | 6.9% | 5.6% |
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 | 0.45 | 0.45 | 0.37 | 0.45 | 0.95 | 0.41 | 0.58 | 1.15 | 0.91 | 0.94 | 1.59 |
| Debt / EBITDA | 3.24 | 3.24 | 3.09 | 3.33 | 8.74 | 2.42 | 5.81 | 6.97 | 5.48 | 6.51 | 11.82 |
| Net Debt / Equity | — | 0.20 | 0.14 | 0.25 | 0.85 | 0.27 | 0.50 | 1.07 | 0.80 | 0.85 | 1.50 |
| Net Debt / EBITDA | 1.40 | 1.40 | 1.18 | 1.85 | 7.78 | 1.62 | 5.00 | 6.48 | 4.80 | 5.86 | 11.17 |
| Debt / FCF | — | 1.85 | 0.94 | 2.29 | 5.24 | 1.39 | 4.50 | 12.39 | 5.28 | 5.50 | 10.63 |
| Interest Coverage | 0.83 | 0.83 | 0.64 | 0.84 | 3.19 | 12.79 | 2.53 | 2.44 | 2.97 | 3.02 | 2.93 |
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 | 0.03 | 0.03 | 0.05 | 0.19 | 0.18 | 0.17 | 0.15 | 0.15 | 0.16 | 0.16 | 0.19 |
| Quick Ratio | 0.03 | 0.03 | 0.05 | 0.19 | 0.18 | 0.17 | 0.15 | 0.15 | 0.16 | 0.16 | 0.19 |
| Cash Ratio | 0.03 | 0.03 | 0.03 | 0.03 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Asset Turnover | — | 0.05 | 0.05 | 0.05 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.04 | 0.04 |
| 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 | 2.1% | 2.6% | 2.9% | 3.2% | 3.1% | 2.9% | 3.8% | 2.9% | 2.5% | 1.8% | 1.8% |
| Payout Ratio | 26.6% | 26.6% | 35.7% | 32.1% | 38.5% | 35.4% | 65.7% | 36.8% | 31.9% | 37.0% | 43.2% |
| 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% | 9.4% | 7.9% | 9.7% | 7.9% | 7.9% | 5.6% | 7.6% | 7.7% | 4.8% | 4.0% |
| FCF Yield | 8.0% | 10.0% | 14.6% | 10.7% | 16.3% | 13.3% | 9.5% | 5.7% | 9.6% | 8.0% | 7.2% |
| Buyback Yield | 4.9% | 6.1% | 0.7% | 1.2% | 4.3% | 0.1% | 2.0% | 0.3% | 0.3% | 2.6% | 0.2% |
| Total Shareholder Yield | 7.0% | 8.7% | 3.6% | 4.4% | 7.4% | 3.0% | 5.8% | 3.1% | 2.8% | 4.4% | 2.0% |
| Shares Outstanding | — | $161M | $170M | $173M | $169M | $90M | $90M | $92M | $92M | $92M | $92M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying WBS stock.
Webster Financial Corporation's current P/E ratio is 13.1x. The historical average is 15.9x. This places it at the 43th percentile of its historical range.
Webster Financial Corporation's current EV/EBITDA is 10.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.4x.
Webster Financial Corporation's return on equity (ROE) is 10.8%. The historical average is 8.9%.
Based on historical data, Webster Financial Corporation is trading at a P/E of 13.1x. This is at the 43th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Webster Financial Corporation's current dividend yield is 2.14% with a payout ratio of 26.6%.
Webster Financial Corporation has 60.8% gross margin and 28.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Webster Financial Corporation's Debt/EBITDA ratio is 3.2x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Fee income volatility and NIM compression
Metrics are mathematically derived from official filings.
Premium Priced, Modest Returns
Trading at 1.33x book and 13.3x trailing earnings, WBS's valuation implies expectations of improved returns, yet reported ROE of 2.7% lags peers, per recent financial data.
The P/B of 1.33 is above the peer median of 1.45, suggesting the market assigns a slight premium, but the implied ROTCE is modest given the low ROE. With a forward P/E of 12.1, the market appears to price in earnings growth, but the sustainability of fee income is questionable. Investors should monitor whether the bank can translate its stable NIM into higher returns to justify the multiple.
ROE Stuck at Low Levels
ROE has hovered near 2.7% for the past year, with ROA at 0.3%, reflecting a low-margin, high-leverage model, as per reported figures.
DuPont decomposition shows that the bank's ROE is driven primarily by leverage (equity/assets of 11%), but the NIM of 0.7% and fee income contribution of 9.6% are insufficient to generate higher returns. The efficiency ratio of 34.4% indicates strong cost control, but the low asset yields and modest fee income cap profitability. Without improvement in NIM or fee generation, ROE is likely to remain subpar.
NIM Stabilizes, Efficiency Improves
NIM held at 0.7% in 2026Q2, while the efficiency ratio improved to 34.4% from 43.6% in the prior quarter, according to financial statements.
The stable NIM suggests that the bank has managed its funding costs, but the low absolute level indicates pressure on asset yields. The sharp improvement in efficiency ratio is notable, but it may be partly due to the volatile fee income, which swung from $0 to $107.2M. Investors should assess whether the efficiency gains are sustainable or a one-time effect.
Capital Ratios Modest but Stable
Equity-to-assets ratio held at 11% in 2026Q2, unchanged from the prior year, indicating a stable but not fortress-like capital position, as per reported data.
The equity ratio is below the peer average, suggesting limited capacity for aggressive capital return. However, the bank has maintained consistent dividends and modest buybacks, indicating a balanced approach. Given the low ROE, retained earnings growth is slow, which may constrain future capital buildup. Regulatory ratios are not disclosed, but the equity ratio suggests adequate, not excessive, capital.
Credit Quality Improving, Provisions Down
Provision for loan losses declined to $31.5M in 2026Q2 from $77.5M in 2025Q1, a 59% reduction, based on reported figures, signaling improving credit conditions.
The declining provisions suggest that the credit cycle is turning favorable, but the low absolute level of provisions may indicate that the bank is not building reserves aggressively. The NPL ratio is not disclosed, but the trend in provisions is positive. However, the volatility in fee income could mask underlying asset quality issues, so investors should monitor charge-offs and NPL formation.
P/E Misleading Due to Fee Swings
The P/E ratio of 13.3 is distorted by volatile non-interest income, which swung from $0 in 2026Q1 to $107.2M in 2026Q2, per financial statements, obscuring true earnings power.
For banks, P/E can be misleading when earnings are subject to one-time items or volatile fee income. In WBS's case, the sharp swing in non-interest income suggests that reported earnings may not be recurring. A more appropriate metric is P/TBV, which is not directly available but can be derived from tangible book value per share of $39.21. Investors should adjust earnings for non-recurring items to assess the sustainable P/E.