What is the average stock price to earnings ratio? (2024)

What is the average stock price to earnings ratio?

Typically, the average P/E ratio is around 20 to 25. Anything below that would be considered a good price-to-earnings ratio, whereas anything above that would be a worse P/E ratio. But it doesn't stop there, as different industries can have different average P/E ratios.

Is 5 a good PE ratio?

Very low vs very high PE ratios

It is arguable that a PE of five or less is not a remarkable bargain. While it might look as if the company's prospects are being viewed too negatively, it is not a bad rule of thumb to filter out companies with a PE below this level.

What is a good EPS for a stock?

"The EPS Rating is invaluable for separating the true leaders from the poorly managed, deficient and lackluster companies in today's tougher worldwide competition," O'Neil wrote. Stocks with an 80 or higher rating have the best chance of success.

What is the common stock price earnings ratio?

The P/E for a stock is computed by dividing the price of a stock (the "P") by the company's annual earnings per share (the "E"). If a stock is trading at $20 per share and its earnings per share are $1, then the stock has a P/E of 20 ($20/$1).

What is the current stock market price to earnings ratio?

Basic Info. S&P 500 P/E Ratio Forward Estimate is at a current level of 22.29, down from 23.60 last quarter and down from 25.43 one year ago. This is a change of -5.55% from last quarter and -12.35% from one year ago.

What is the safest PE ratio?

As far as Nifty is concerned, it has traded in a PE range of 10 to 30 historically. Average PE of Nifty in the last 20 years was around 20. * So PEs below 20 may provide good investment opportunities; lower the PE below 20, more attractive the investment potential.

Is 10 a good PE ratio?

Typically, the average P/E ratio is around 20 to 25. Anything below that would be considered a good price-to-earnings ratio, whereas anything above that would be a worse P/E ratio.

What stock has the highest EPS?

BRK-ABerkshire Hathaway Inc52,642
ALLRAllarity Therapeutics Inc2,625
FWBIFirst Wave BioPharma Inc1,131
SPRCSciSparc Ltd920
7 more rows

Do you want a high or low EPS?

EPS indicates how much money a company makes for each share of its stock and is a widely used metric for estimating corporate value. A higher EPS indicates greater value because investors will pay more for a company's shares if they think the company has higher profits relative to its share price.

What is a good dividend yield?

The average dividend yield on S&P 500 index companies that pay a dividend historically fluctuates somewhere between 2% and 5%, depending on market conditions. 7 In general, it pays to do your homework on stocks yielding more than 8% to find out what is truly going on with the company.

Is 7 a good PE ratio?

The price-to-earnings ratio (P/E ratio) is a quick way to gauge whether a stock is undervalued or overvalued. All else equal, the lower the P/E ratio, the better the investment. For this reason, a P/E of less than 20x is “good” and anything higher than 30x is “bad.”

Why is Amazon PE ratio so high?

Why is Amazon PE Ratio so high? Amazon's P/E ratio is higher than most companies in the retail industry because investors are optimistic about its future growth potential. As mentioned, a high price multiple can indicate the market expects higher growth from a company.

Why is Tesla PE ratio so high?

Tesla's stock isn't a bargain and trades at a premium. However, its high valuation reflects expectations of substantial growth, driven by the company's innovative approach and diversified expansion opportunities. Tesla's multiples, including EV/EBITDA and P/E ratios, are notably higher than those of its peers.

What is the average PE of the S&P 500?

Basic Info

S&P 500 P/E Ratio is at a current level of 23.27, down from 24.59 last quarter and up from 19.17 one year ago. This is a change of -5.34% from last quarter and 21.43% from one year ago. The S&P 500 PE Ratio is the price to earnings ratio of the constituents of the S&P 500.

What is the average PE ratio for the Nasdaq?

The PE ratio for Nasdaq stock stands at 24.88 as of Feb 5, 2024. This is based on the current EPS of $2.25 and the stock price of $55.98 per share. An increase of 6% has been recorded in the PE ratio compared to the average of 23.5 of the last four quarters.

What is a low PE ratio?

A high P/E could mean that a stock's price is high relative to earnings and possibly overvalued. Conversely, a low P/E might indicate that the current stock price is low relative to earnings.

Is 30 a bad PE ratio?

P/E 30 Ratio Explained

A P/E of 30 is high by historical stock market standards. This type of valuation is usually placed on only the fastest-growing companies by investors in the company's early stages of growth. Once a company becomes more mature, it will grow more slowly and the P/E tends to decline.

Why is PE ratio bad?

For example, if they are newly launched and have not accumulated earnings. A high P/E typically means a stock's price is high relative to earnings. A low P/E indicates a stock's price is low compared to earnings and the company may be losing money. A consistently negative P/E ratio run the risk of bankruptcy.

Is a PE ratio of 200 bad?

It would usually mean the market does not understand how to value that particular company. P/e of over 200x indicates that past earnings are not indicative and that future earnings might grow exponentially.

What is the PE ratio for intelligent investor?

Moderate price to earnings ratio - No more than 15 times average earnings of the past 3 years. A moderate ratio of price to assets - Should not be more than 1.5 times the book value last reported. However, a low PE ratio below 15 can justify a higher price to book value. PE ratio x PB ratio should not be more than 22.5 ...

What is the PE ratio of Berkshire Hathaway?

P/E ratio as of February 2024 (TTM): 9.83

According to Berkshire Hathaway 's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 9.82614.

What is the PE ratio of Google?

P/E ratio as of February 2024 (TTM): 27.9

According to Alphabet (Google)'s latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 27.939. At the end of 2022 the company had a P/E ratio of 19.3.

Which is undervalued stock?

Underperforming stocks, often known as undervalued stocks, are simply equities that are trading below their true or intrinsic value.

Which stock has highest PE ratio now?

Top 100 Price Earning Ratios
SrCompanyLast Price
1JITF Infralogis597.05
2Guj Alkali789.90
3Sasta Sundar405.05
4BLACK BOX286.80
24 more rows

Should I buy a stock with negative EPS?

Even if a company has a negative EPS, which means it's losing money, the stock may still be worth buying. In the case of Amazon, for example, the company had a negative EPS for a long period of time, but its stock price still increased because of other indicators, including its massive market share.

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