Latest Ratios: P/E Ratio 0.5x · EV/EBITDA -2.2x · ROE 11.0%. (2018–2025 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 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $37M | $71M | $439M | $404M | $1.3B | $544M | — | — | — |
| Enterprise Value | $-121921185 | $-991043747 | $-303471960 | $204M | $-220634436 | $-215022378 | — | — | — |
| P/E Ratio → | 0.46 | 0.13 | 1.18 | 2.42 | 2.22 | — | — | — | — |
| P/S Ratio | 0.06 | 0.02 | 0.16 | 0.15 | 0.48 | 0.17 | — | — | — |
| P/B Ratio | 0.05 | 0.01 | 0.09 | 0.09 | 0.28 | 0.14 | — | — | — |
| P/FCF | 1.16 | 0.33 | 2.01 | 1.03 | 1.78 | — | — | — | — |
| P/OCF | 1.02 | 0.29 | 1.00 | 0.99 | 1.75 | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | -0.26 | -0.11 | 0.08 | -0.08 | -0.07 | — | — | — |
| EV / EBITDA | -2.17 | -2.65 | -1.58 | 30.02 | -0.44 | — | — | — | — |
| EV / EBIT | -2.25 | -2.75 | -1.70 | — | -0.46 | — | — | — | — |
| EV / FCF | — | -4.62 | -1.39 | 0.52 | -0.29 | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 51.1% | 51.1% | 52.6% | 39.7% | 52.3% | 57.9% | 75.5% | 80.7% | 80.7% |
| Operating Margin | 9.3% | 9.3% | 6.4% | -0.3% | 17.1% | -58.1% | -16.4% | -12.9% | -79.0% |
| Net Profit Margin | 14.3% | 14.3% | 13.3% | 6.4% | 21.7% | -49.1% | -21.9% | -21.3% | -87.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.0% | 11.0% | 7.7% | 3.5% | 13.9% | -44.0% | -28.4% | -36.1% | -75.2% |
| ROA | 8.2% | 8.2% | 5.8% | 2.8% | 10.9% | -31.6% | -18.3% | -19.7% | -29.6% |
| ROIC | 6.6% | 6.6% | 3.1% | -0.1% | 11.2% | -51.8% | -26.9% | -42.8% | -138.7% |
| ROCE | 7.1% | 7.1% | 3.7% | -0.1% | 10.9% | -50.1% | -19.4% | -19.6% | -62.2% |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | 0.05 | 0.04 | 0.00 | 0.01 | 0.02 | 0.03 | 0.07 |
| Debt / EBITDA | 0.19 | 0.19 | 1.27 | 29.03 | 0.03 | — | — | — | — |
| Net Debt / Equity | — | -0.21 | -0.15 | -0.04 | -0.33 | -0.19 | -0.31 | -0.61 | -0.63 |
| Net Debt / EBITDA | -2.83 | -2.83 | -3.87 | -29.23 | -3.11 | — | — | — | — |
| Debt / FCF | — | -4.95 | -3.39 | -0.51 | -2.07 | — | — | — | — |
| Interest Coverage | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($1.1B) exceeds total debt ($71M)
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 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.10 | 2.10 | 3.12 | 3.96 | 5.07 | 4.03 | 3.57 | 2.82 | 1.69 |
| Quick Ratio | 2.10 | 2.10 | 3.12 | 3.96 | 5.07 | 3.49 | 3.22 | 2.35 | 1.69 |
| Cash Ratio | 0.88 | 0.88 | 1.75 | 2.48 | 3.30 | 2.23 | 1.77 | 1.17 | 0.57 |
| Asset Turnover | — | 0.54 | 0.43 | 0.43 | 0.47 | 0.61 | 0.64 | 0.59 | 0.34 |
| 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 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 51.7% | 100.0% | 36.1% | — | — | — | — | — | — |
| Payout Ratio | 23.6% | 23.6% | 43.2% | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 100.0% | 773.7% | 84.7% | 41.3% | 45.0% | — | — | — | — |
| FCF Yield | 85.9% | 303.7% | 49.9% | 97.4% | 56.3% | — | — | — | — |
| Buyback Yield | 36.6% | 100.0% | 24.4% | 100.0% | 5.0% | 3.0% | — | — | — |
| Total Shareholder Yield | 88.3% | 100.0% | 60.5% | 100.0% | 5.0% | 3.0% | — | — | — |
| Shares Outstanding | — | $37M | $372M | $388M | $402M | $394M | $322M | $322M | $322M |
Includes 30+ ratios · 8 years · Updated daily
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Quick answers to the most common questions about buying WDH stock.
Waterdrop Inc.'s current P/E ratio is 0.5x. The historical average is 1.5x. This places it at the 25th percentile of its historical range.
Waterdrop Inc.'s current EV/EBITDA is -2.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 30.0x.
Waterdrop Inc.'s return on equity (ROE) is 11.0%. The historical average is -18.4%.
Based on historical data, Waterdrop Inc. is trading at a P/E of 0.5x. This is at the 25th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Waterdrop Inc.'s current dividend yield is 51.69% with a payout ratio of 23.6%.
Waterdrop Inc. has 51.1% gross margin and 9.3% operating margin.
Waterdrop Inc.'s Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Regulatory and Policy Lapse
Combined Ratio Reflects Operational Maturity
As reported in recent quarterly filings, Waterdrop's combined ratio improved to 88.4% in 2025Q2, marking a significant recovery from the 106.1% level observed in 2023Q2 and suggesting that the firm has successfully stabilized its underwriting profitability through more disciplined expense management and improved loss ratio control.
The consistent downward trajectory of the combined ratio indicates that the company is effectively scaling its brokerage operations while mitigating the volatility that previously plagued its underwriting performance. Investors should monitor whether this sub-90% efficiency is sustainable or if it remains sensitive to periodic spikes in loss severity within the partner network.
ROE Expansion Driven by Efficiency
Based on the provided financial data, Waterdrop's return on equity has steadily climbed from 0.5% in 2023Q2 to 2.8% in 2025Q2, reflecting a strengthening ability to convert its growing brokerage commission base into tangible shareholder returns despite the inherent volatility of the Chinese insurance market.
The improvement in ROE appears to be a direct result of the company's transition toward higher-value, long-term insurance products which offer better margin profiles than short-term policies. This trend suggests that the firm is successfully moving beyond its initial high-volume, low-margin phase, though the absolute level of ROE remains modest relative to global insurance peers.
P/B Multiples Mask Underlying Value
According to current market data, Waterdrop trades at a P/B ratio of 13.51 as of 2025Q2, a valuation level that appears to reflect high growth expectations rather than traditional book value metrics, warranting further investigation into the quality of the assets backing this premium valuation.
The elevated P/B multiple suggests that the market is pricing in the company's unique data-arbitrage moat rather than its current book value. Investors should be cautious, as this valuation may be vulnerable to any regulatory shifts that could decouple the crowdfunding platform from the brokerage business, potentially impairing the firm's primary lead generation engine.
Misapplication of P/E in Brokerage
As indicated by the provided financial statements, the P/E ratio is frequently misapplied to Waterdrop, as it fails to account for the upfront recognition of brokerage commissions which can significantly distort earnings volatility and obscure the underlying cash flow reality of the business model.
Relying on P/E ignores the potential for commission clawbacks and the timing mismatch between revenue recognition and actual cash receipt. Analysts should instead focus on the combined ratio and cash-adjusted earnings to better assess the true economic profitability of the brokerage operations.