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RootROOT +0.63%73 EV-to-OCF is 2.76 as of Jul. 25, 2026, which is 66% above its 10-year median of 1.66. GuruFocus rates ROOT with a GF Score™ of 73/100 and a GF Value™ of $87.74 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 504 Insurance companies, Root ranks better than 69.05% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Root's Enterprise Value is $522 Mil.
Root's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was $189 Mil. Therefore, Root's EV-to-OCF for today is 2.76.
The historical rank and industry rank for Root's EV-to-OCF or its related term are showing as below:
ROOT'
s EV-to-OCF Range Over the Past 10 Years
Min: -39.86 Med: 1.66 Max: 13.45
Current: 2.76
During the past 8 years, the highest EV-to-OCF of Root was 13.45. The lowest was -39.86. And the median was 1.66.
ROOT's EV-to-OCF is ranked better than 69.05% of 504
companies
in the Insurance industry
Industry Median: 6.815
vs ROOT: 2.76
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
As of today (2026-07-25), Root's stock price is $58.07.
Root's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was $3.340. Therefore, Root's PE Ratio (TTM) for today is 17.39.
Root (NAS:ROOT) EV-to-OCF Explanation
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Root's share price for today is $58.07.
Root's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $3.340.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Root EV-to-OCF Related Terms
Root EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Root's EV-to-OCF can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Insurance - Property & Casualty subindustry, Root's EV-to-OCF, along with its competitors' market caps and EV-to-OCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Root EV-to-OCF vs Insurance Industry
For the Insurance industry and Financial Services sector, Root's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Root's EV-to-OCF falls into.
Root's current Enterprise Value is $522 Mil.
Root's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $189 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Root (ROOT) has a EV-to-OCF of 2.76 as of Jul. 25, 2026. This is 66% above median its historical median of 1.66. According to the industry distribution chart, Root ranks #156 out of 504 companies in the Insurance industry, placing it in the top 31%.
Is Root's EV-to-OCF too high?
Root's current EV-to-OCF of 2.76 is 66% above median its 10-year median of 1.66. The Insurance industry median EV-to-OCF is 6.82. Root's value of 2.76 is 59.5% below this industry median. Based on the distribution chart, Root ranks #156 out of 504 companies in the Insurance industry, which is above the industry midpoint. Overall, Root has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Root's EV-to-OCF compare to BOW and HRTG?
According to the Insurance industry distribution chart, Root ranks #156 out of 504 companies for EV-to-OCF. This puts Root in the upper half of its industry. The industry median EV-to-OCF is 6.82. Root's value of 2.76 is 59.5% below this benchmark. While the company's 10-year median is 1.66 vs. the industry median of 6.82, Root has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-OCF for an Insurance company?
The median EV-to-OCF among Insurance companies is 6.82, based on 504 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Root's current EV-to-OCF of 2.76 is 59.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Insurance industry, the median EV-to-OCF is 6.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Root's current EV-to-OCF is 2.76, which is 66% above median its own 10-year median of 1.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Root stock overvalued right now?
Based on GuruFocus' analysis, Root (ROOT) is currently considered Significantly Undervalued. The stock's GF Value™ is $87.74, compared to a current price of $58.07 — trading 33.8% below its estimated fair value. The current EV-to-OCF is 2.76, which is 66% above median its 10-year median of 1.66 and 59.5% below the Insurance industry median of 6.82. Root's overall GF Score™ is 73/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Root (ROOT), the current EV-to-OCF is 2.76 as of Jul. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Root (ROOT) Overvalued in 2026?
Based on GuruFocus' analysis, Root stock appears to be undervalued.
The current stock price of $58.07 is trading 33.8% below its estimated GF Value™ of $87.74.
GuruFocus considers Root to be Significantly Undervalued.
Key valuation signals for ROOT:
EV-to-OCF: 2.76 (66% above median its 10-year median of 1.66)
GF Value™: $87.74 vs. price of $58.07 (33.8% below fair value)
Industry Position: 59.5% below the Insurance median (#156 of 504)
No single metric tells the full story. See the ROOT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Root Inc develops and launches a direct-to-consumer personal automobile insurance and mobile technology company. It generates revenue from the sales of auto insurance policies within the United States.
73GF Score
Get the complete analysis for ROOT
EV-to-OCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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