The Hanover Insurance Group
Financial ratios & Valuation

Forward Multiples (2025 – 2025)

2025
Price/Earnings ratio
13.11
Price/Sales ratio
0.94
Earnings per Share (EPS)
$13.16

Historical Multiples (2014 – 2023)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM Median
Valuation Ratios
Price/Earnings ratio
11.1010.5525.1124.6612.6312.8612.2811.1241.47122.7915.1812.63
Price/Sales ratio
0.610.690.780.881.091.110.910.900.870.720.891.11
Price/Book Value ratio
1.101.221.361.531.671.871.371.492.061.751.931.67
Price/Cash Flow ratio
5.547.975.286.518.959.066.225.716.6611.988.109.06
Price/Free Cash Flow ratio
5.658.345.396.699.179.276.365.766.8212.398.229.27
Price/Earnings Growth ratio
0.930.52-0.471.190.110.85-1.160.49-0.57-1.760.380.11
Dividend Yield
2.13%2.12%2.06%1.88%1.90%7.06%2.25%2.17%2.26%2.70%2.23%1.90%
Profitability Indicator Ratios
Gross Profit Margin
100%100%100%100%100%100%100%100%100%100.30%92.00%100%
Operating Profit Margin
8.73%9.93%4.97%6.42%10.67%10.59%9.14%9.94%3.24%0.80%5.11%10.59%
Pretax Profit Margin
7.45%8.72%3.88%5.81%6.28%10.67%9.21%9.97%2.63%0.68%7.70%6.28%
Net Profit Margin
5.56%6.58%3.13%3.59%8.69%8.69%7.43%8.08%2.12%0.58%5.91%8.69%
Effective Tax Rate
25.31%24.71%18.82%32.67%15.39%17.83%18.61%19.43%18.88%18.49%23.33%15.39%
Return on Assets
2.04%2.40%1.09%1.20%3.15%3.40%2.66%2.96%0.82%0.24%2.38%3.40%
Return On Equity
9.91%11.65%5.42%6.21%13.23%14.57%11.20%13.44%4.98%1.43%14.05%13.23%
Return on Capital Employed
3.39%3.82%1.82%2.25%3.87%4.16%3.29%3.66%1.33%0.56%2.16%4.16%
Liquidity Ratios
Current Ratio
0.860.820.830.810.951.38N/AN/AN/AN/A2.970.95
Quick Ratio
2.492.388.9110.10169.0396.59107.11102.572.600.332.9796.59
Cash ratio
0.530.460.380.5227.364.032.494.190.410.050.554.03
Days of Sales Outstanding
98.02100.90106.13110.36229.45229.44242.98N/A106.88103.86111.06229.44
Days of Inventory outstanding
N/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Operating Cycle
N/AN/AN/AN/AN/AN/AN/AN/AN/A103.86111.06N/A
Days of Payables Outstanding
N/AN/AN/AN/AN/AN/AN/AN/AN/A-1.30K37.60N/A
Cash Conversion Cycle
N/AN/AN/AN/AN/AN/AN/AN/AN/A1.40K73.46N/A
Debt Ratios
Debt Ratio
0.060.050.050.050.060.050.050.050.050.050.050.05
Debt Equity Ratio
0.310.280.270.260.260.220.240.240.330.310.270.26
Long-term Debt to Capitalization
0.240.220.210.200.200.180.190.190.250.240.210.20
Total Debt to Capitalization
0.240.220.210.200.200.180.190.190.250.240.210.20
Interest Coverage Ratio
N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A9.27N/A
Cash Flow to Debt Ratio
0.620.540.930.890.700.920.901.050.920.460.870.70
Company Equity Multiplier
4.834.844.975.164.194.284.194.536.015.925.344.19
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
0.110.080.140.130.120.120.140.150.130.060.110.12
Free Cash Flow / Operating Cash Flow Ratio
0.980.950.970.970.970.970.970.990.970.960.980.97
Cash Flow Coverage Ratio
0.620.540.930.890.700.920.901.050.920.460.870.70
Short Term Coverage Ratio
N/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Dividend Payout Ratio
23.75%22.38%51.83%46.61%24.11%90.84%27.73%24.17%93.87%332.01%33.33%24.11%