EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Tower's Enterprise Value is A$459.4 Mil.
Tower's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was A$83.8 Mil. Therefore, Tower's EV-to-FCF for today is 5.48.
The historical rank and industry rank for Tower's EV-to-FCF or its related term are showing as below:
ASX:TWR'
s EV-to-FCF Range Over the Past 10 Years
Min: -34.39 Med: -1.76 Max: 35.48
Current: 5.94
During the past 13 years, the highest EV-to-FCF of Tower was 35.48. The lowest was -34.39. And the median was -1.76.
ASX:TWR's EV-to-FCF is ranked better than 68.11% of 392
companies
in the Insurance industry
Industry Median: 9.645
vs ASX:TWR: 5.94
EV-to-FCF 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 (2026-07-08), Tower's stock price is A$1.51.
Tower's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was A$0.144. Therefore, Tower's PE Ratio (TTM) for today is 10.49.
Tower (ASX:TWR) EV-to-FCF Explanation
EV-to-FCF 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.
Tower's share price for today is A$1.51.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Tower's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was A$0.144.
* 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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Tower EV-to-FCF Related Terms
Tower EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Tower's EV-to-FCF 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, Tower's EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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.
Tower EV-to-FCF vs Insurance Industry
For the Insurance industry and Financial Services sector, Tower's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Tower's EV-to-FCF falls into.
Tower's current Enterprise Value is A$459.4 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Tower's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was A$83.8 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.
Tower (ASX:TWR) has a EV-to-FCF of 5.48 as of Jul. 08, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Tower and its competitors. According to the industry distribution chart, Tower ranks #125 out of 392 companies in the Insurance industry, placing it in the top 31.9%.
Is Tower's EV-to-FCF too high?
Tower's current EV-to-FCF is 5.48. The Insurance industry median EV-to-FCF is 9.65. Tower's value of 5.48 is 43.2% below this industry median. Based on the distribution chart, Tower ranks #125 out of 392 companies in the Insurance industry, which is above the industry midpoint. Overall, Tower has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tower's EV-to-FCF compare to CB and PGR?
According to the Insurance industry distribution chart, Tower ranks #125 out of 392 companies for EV-to-FCF. This puts Tower in the upper half of its industry. The industry median EV-to-FCF is 9.65. Tower's value of 5.48 is 43.2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-FCF for an Insurance company?
The median EV-to-FCF among Insurance companies is 9.65, based on 392 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tower's current EV-to-FCF of 5.48 is 43.2% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Tower and its competitors. For the Insurance industry, the median EV-to-FCF is 9.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tower's current EV-to-FCF is 5.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tower stock overvalued right now?
Based on GuruFocus' analysis, Tower (ASX:TWR) is currently considered Fairly Valued. The stock's GF Value™ is A$1.37, compared to a current price of A$1.51 — trading 10.2% above its estimated fair value. The current EV-to-FCF is 5.48 and 43.2% below the Insurance industry median of 9.65. Tower's overall GF Score™ is 85/100 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Tower (ASX:TWR), the current EV-to-FCF is 5.48 as of Jul. 08, 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 Tower (ASX:TWR) Overvalued in 2026?
Based on GuruFocus' analysis, Tower stock appears to be overvalued.
The current stock price of A$1.51 is trading 10.2% above its estimated GF Value™ of A$1.37.
GuruFocus considers Tower to be Fairly Valued.
Key valuation signals for ASX:TWR:
EV-to-FCF: 5.48
GF Value™: A$1.37 vs. price of A$1.51 (10.2% above fair value)
Industry Position: 43.2% below the Insurance median (#125 of 392)
No single metric tells the full story. See the ASX:TWR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tower Ltd is a general insurance company. The company provides insurance services namely car, house, contents, travel, business, boat insurance, and among others. The company has two geographical segments, New Zealand General Insurance, and Pacific Islands General Insurance. The company derives the majority of its revenue from the New Zealand segment.
85GF Score
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EV-to-FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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