What is a good PE for a stock? (2024)

What is a good PE for a stock?

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 is a good PE ratio for a stock?

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 a PE ratio of 5 good?

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.

Is an 8 PE ratio good?

Although eight is a lower P/E, and thus technically a more attractive valuation, it's also likely that this company is facing financial difficulties leading to the lower EPS and the low $2 stock price. Conversely, a high P/E ratio could mean a company's stock price is overvalued.

What is Best Buy PE ratio?

P/E ratio as of April 2024 (TTM): 13.0

According to Best Buy's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 12.97. At the end of 2022 the company had a P/E ratio of 11.9.

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.

Is 0.5 a good PE ratio?

The ratio is calculated by dividing the price-earnings ratio by the sum of the earnings growth rate and the dividend yield. With this modified technique, ratios above one are considered poor, while ratios below 0.5 are considered attractive.

Why is Amazon's PE so high?

34 One of the reasons Amazon's P/E is so much higher than Apple's is that its efforts to expand aggressively on a wide scale have helped keep earnings somewhat suppressed and the P/E ratio high. The P/E ratio should be used with a variety of other analysis tools to analyze a stock.

What is the safest 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. But it doesn't stop there, as different industries can have different average P/E ratios.

Is 10 a good PE ratio?

The market average P/E ratio currently ranges from 20-25, so a higher PE above that could be considered bad, while a lower PE ratio could be considered better. However, the long answer is more nuanced than that.

Is a PE ratio of 10 low?

The P/E ratio is most useful as a relative tool; when one compares the P/E ratio of one company with other, similar companies. Nonetheless, it can also be evaluated on an absolute basis. In this context, analysts generally consider P/E ratios of 10 or lower to be "cheap" and P/E ratios of 20 or higher to be expensive.

What is the PE ratio of Apple?

As at Apr 17, 2024, the AAPL stock has a PE ratio of 26.01. This is based on the current EPS of $6.46 and the stock price of $168 per share. A decrease of 12% has been seen in the P/E ratio compared to the average of 29.5 of the last 4 quarters.

What is the PE ratio of Tesla?

Therefore, Tesla's PE Ratio for today is 36.45. During the past 13 years, the highest PE Ratio of Tesla was 1396.86. The lowest was 31.23.

Is a 200 PE ratio good?

A P/E ratio of 200 is high. But it is basically saying that people expect the company to grow earnings to be 15 to 20 times as large as they are now (so the P/E ratio would be 10 to 15). If you don't think that the company has that kind of potential, don't invest.

Which stock has highest PE ratio now?

Is 80 PE ratio good?

For instance, if the relative P/E ratio of a counter is 80%, when compared to the benchmark P/E levels, it means that the company's absolute ratio is lower than the industry. Likewise, Relative P/E ratio higher than 100% implies that a business has outperformed the benchmark or the industry in the given time frame.

Is 100 PE ratio good?

If the relative P/E measure is 100% or more, this tells investors that the current P/E has reached or surpassed the past value.

What is the current PE ratio of the S&P 500?

S&P 500 P/E Ratio is at a current level of 24.79, up from 23.27 last quarter and up from 22.23 one year ago. This is a change of 6.51% from last quarter and 11.53% from one year ago. The S&P 500 PE Ratio is the price to earnings ratio of the constituents of the S&P 500.

Is 110 PE ratio good?

Let's say we have a company with a P/E ratio of 110 that is expected to double its profits in the next 12 months. Its PEG ratio is 110 divided by 100%, equal to 1.1 – a perfectly normal figure.

Is 3.5 a good PE ratio?

There's no "good" P/E, but 10-20 is usually considered fairly valued. <10 is usually considered undervalued and >20 is usually considered overvalued, though it really depends on the industry. Compare the company to its industry peers to determine if its P/E is fair. 2 comments.

What is a 2.5 PE ratio?

P/E ratio example

Now, if another company in the same industry also has a share price of $50 but an EPS of $20, its P/E ratio would be 2.5, meaning it would cost $2.50 to purchase $1 of that company's earnings. The second company is the better value, in theory, if all other variables are equal.

What does a PE ratio of 4.5 mean?

A Sensex PB ratio of more than 4.5 means the market is overvalued. A Sensex PB ratio between 2.75 to 3.25 means the market is fairly priced. A Sensex PB ratio below 3 means the market is undervalued.

What is Walmart's PE ratio?

As of today (2024-04-11), Walmart's share price is $60.44. Walmart's EPS without NRI for the trailing twelve months (TTM) ended in Jan. 2024 was $4.18. Therefore, Walmart's PE Ratio without NRI for today is 14.47.

Is Tesla PE ratio too high?

Tesla's P/E has fallen from that outlandish 188.43, to 45.17 (as of February 23rd) – still too high. Compare that to GM's 5.44, Ford's 11.29, Honda's 9.40, and Toyota's 10.60 – all well below what is considered “typical” for P/E Ratios.

Is high PE overvalued?

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