For example, MSCI Shenzhen A shares have a P/E ratio of 26.9 while MSCI Philippines shares have a P/E ratio of 19.8, the data provided by Nomura showed.
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Graphic for Asia's P/E ratio compared with world indexes: reut.
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The higher the P/E ratio, the richer the market valuation.
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This compares with a nearly 11 time P/E ratio for Apple.
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Tilray's 2020 P/E ratio, meanwhile, is currently 300; Canopy's is 125.
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Once investors lose faith in earnings, the P/E ratio is meaningless.
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First, does everyone reading this know what a P/E ratio is?
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Think a low price-to-earnings (P/E) ratio is a good thing?
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In NVR, P/E ratio has typically been 2409 to 291 times earnings.
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The Nasdaq Composite has a P-E ratio of 22 times forward earnings.
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The P/E ratio is one way to measure the cost of a stock.
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Apple has typically had a low P/E ratio compared with its megacap tech peers.
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The firm trades at a single-digit p/e ratio and offers a 6% dividend.
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You can't, because a company that has no earnings yet can't have a P/E ratio.
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During the last bull market, Apple traded at a P/E ratio in the high 30s.
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So while the P/E ratio should probably inform long-term decisions, it's no crystal ball.
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And the S&P 500 P-E ratio is below 17, which is the historical average.
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Ticker: MIDDIndustry: MachineryMarket cap: $6.6 billionDiscount to 5-year P/E ratio: 21%Source: Goldman Sachs
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Ticker: ZIONIndustry: BanksMarket cap: $8.4 billionDiscount to 5-year P/E ratio: 21%Source: Goldman Sachs
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Ticker: SBNYIndustry: BanksMarket cap: $6.7 billionDiscount to 5-year P/E ratio: 22%Source: Goldman Sachs
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Ticker: AALIndustry: AirlinesMarket cap: $12.6 billionDiscount to 5-year P/E ratio: 22%Source: Goldman Sachs
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Ticker: TCFIndustry: BanksMarket cap: $6.4 billionDiscount to 5-year P/E ratio: 22%Source: Goldman Sachs
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Ticker: LNCIndustry: InsuranceMarket cap: $11.4 billionDiscount to 5-year P/E ratio: 26%Source: Goldman Sachs
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Ticker: EWBCIndustry: BanksMarket cap: $6.5 billionDiscount to 5-year P/E ratio: 30%Source: Goldman Sachs
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Ticker: CBSIndustry: MediaMarket cap: $13.3 billionDiscount to 5-year P/E ratio: 39%Source: Goldman Sachs
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Compared with the other megacap tech stocks, Apple's P/E ratio still ranks among the lowest.
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Higher interest rates would make it harder for the P/E ratio to continue rising, he adds.
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The price-to-earnings ratio of IEO is 220; for XOP the P/E ratio is 22016.
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Ticker: EVRIndustry: Capital marketsMarket cap: $3 billionDiscount to 5-year P/E ratio: 35%Source: Goldman Sachs
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Ticker: COMMIndustry: Communications equipmentMarket cap: $2.8 billionDiscount to 5-year P/E ratio: 38%Source: Goldman Sachs
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Ticker: AYIIndustry: Electrical equipmentMarket cap: $5.1 billionDiscount to 5-year P/E ratio: 39%Source: Goldman Sachs
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Apple's trailing price-to-earnings, or P/E, ratio steadily climbed this year alongside its stock price.
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A low P/E ratio could mean several things, and you really need to understand what those are.
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A P/E ratio of 6900 equates to an earnings yield (E/P) on stocks of 2628 percent.
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The forward trajectory of the "E," or earnings in the P/E ratio, plays a role as well.
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Ticker: BMYSector: HealthcareMarket cap: $153.8 billionP/E at 2009 low: 10xWorst-case 2021 P/E ratio: 8xDiscount: 13%
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Ticker: GILDSector: HealthcareMarket cap: $84.7 billionP/E at 2009 low: 17xWorst-case 2021 P/E ratio: 15xDiscount: 13%
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Ticker: TROWSector: FinancialsMarket cap: $32.6 billionP/E at 2009 low: 18xWorst-case 2021 P/E ratio: 15xDiscount: 17%
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Ticker: ALGNSector: HealthcareMarket cap: $21.4 billionP/E at 2009 low: 66xWorst-case 2021 P/E ratio: 21xDiscount: 68%
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Ticker: ALXNSector: HealthcareMarket cap: $22.5 billionP/E at 2009 low: 34xWorst-case 2021 P/E ratio: 9xDiscount: 74%
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A P/E ratio is an important metric used by traders to gauge the value of a stock.
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The SOX ETF has a P-E ratio of 16 times forward earnings and the Nasdaq 23 times.
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A P-E ratio is simply the current share price of a stock divided by its earnings per share.
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Xerox — which has risen less than 60 percent since October 2009 — has a P/E ratio of just 11.
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It trades at 48 times trailing earnings, below Microsoft's 50 times P-E ratio and Amazon's 140 times valuation.
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That means that the numerator in the "P/E" ratio has fallen, even as the denominator remains relatively static.
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To put that in historical context, the index historically has sold at an average P/E ratio of 2900.
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One of the most commonly cited metrics is the price-to-earnings (P/E) ratio of the market indices.
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Ticker: LOWSector: Consumer discretionaryMarket cap: $94.5 billionP/E at 2009 low: 12xWorst-case 2021 P/E ratio: 12xDiscount: 1%
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Ticker: SWKSSector: Information technologyMarket cap: $19.9 billionP/E at 2009 low: 14xWorst-case 2021 P/E ratio: 12xDiscount: 9%
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Ticker: CRMSector: Information technologyMarket cap: $171.3 billionP/E at 2009 low: 51xWorst-case 2021 P/E ratio: 44xDiscount: 13%
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Ticker: MXIMSector: Information technologyMarket cap: $16.9 billionP/E at 2009 low: 28xWorst-case 2021 P/E ratio: 20xDiscount: 27%
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Ticker: QCOMSector: Information technologyMarket cap: $101.5 billionP/E at 2009 low: 18xWorst-case 2021 P/E ratio: 13xDiscount: 28%
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Ticker: TTWOSector: Communication servicesMarket cap: $12.8 billionP/E at 2009 low: 36xWorst-case 2021 P/E ratio: 24xDiscount: 33%
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Ticker: TXNSector: Information technologyMarket cap: $122.5 billionP/E at 2009 low: 34xWorst-case 2021 P/E ratio: 23xDiscount: 33%
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Ticker: ADISector: Information technologyMarket cap: $45.6 billionP/E at 2009 low: 3oxWorst-case 2021 P/E ratio: 20xDiscount: 35%
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Ticker: INTCSector: Information technologyMarket cap: $284.4 billionP/E at 2009 low: 24xWorst-case 2021 P/E ratio: 12xDiscount: 51%
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A low P/E ratio signals that Wall Street expects profits to stagnate or even decline in the future.
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For comparison, Disney has a P/E ratio of about 14 and an EV-to-EBITDA ratio of about 11.
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That compares to a dividend yield of 2.81 percent and a forward P/E ratio of 19.8 six months ago.
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"AAPL has a lower P/E ratio than nine of the 11 S&P 500 sectors," the Bespoke report added.
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Were it to trade in line with the S&P 500 p/e ratio, it would be worth $900 billion.
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The usefulness of this is to help you better gauge what is a meaningfully low or high P/E ratio.
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You probably use metrics like dividend yield, P/E ratio, book value and a few other standard measures to evaluate stocks.
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"Back in 1999, the tech sector of the S&P 500 had a P-E ratio of 90, " Siegel pointed out.
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According to popular metrics such as the P/E ratio, stocks today seem far more overvalued than at the 220006 peak.
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A P/E ratio measures a stock or an index's price relative to its per-share earnings on an annual basis.
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The valuation measure cited by the Fed, the forward P/E ratio, now stands at 16.47, according to Thomson Reuters DataStream.
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For instance, a forward P/E ratio of 26.5 was seen in March 2000, just before the dead top of the market.
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This measure is the market's earnings yield (inverse of the P/E ratio) minus the current yield on the 10-year Treasury.
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The melt-up lifted the S&P 500's P/E ratio to 18.3 at the end of November, according to Refinitiv.
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Under the traditional price-to-earnings (P/E) ratio method of valuing equities, stocks recently rose to their most expensive level since September.
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The valuation (in terms of P/E ratio) of Maruti Suzuki now stands second in the world in the auto industry after Tesla.
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While comparable with other high-flying tech stocks, the p/e ratio is 10 times those of auto suppliers such as Delphi Automotive.
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The current P/E ratio is historically high, given that the average P/E on the Dow has been about 6900 since 2628.
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A P/E ratio of 21 on the Dow looks a lot more attractive given the low rates of return on Treasury securities.
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The trailing P/E ratio is the price per share of a stock divided by earnings per share over the last 24 months.
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The average P/E ratio in that index is now 26, up from 20 at the start of the year, according to FactSet.
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Earnings are improving, and the P/E ratio of the index is just 12.5 times this year's projected earnings, according to Yardeni Research.
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If the P/E ratio is high, that means Wall Street is paying a premium in hopes that profits will rise over time.
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The problem is that the reason why the P/E ratio looks so low right now is because earnings estimates are still too high.
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Now, earnings are expected to grow but the P/E ratio will likely start to contract and begin to offset that earnings growth, Parker explained.
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This reading on this popular measure of valuation, known as "forward P/E," compares to a 15-year average forward P/E ratio of 15.7.
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But its forward P/E ratio slumped by twice that margin, 27 percent, contracting from 27.2 to 225, below its five-year average of 22014.
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He also looked at the difference between today's price/earnings ratio of about 24, and the historic P/E ratio to estimate the speculative return.
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An increase in a company's P/E ratio could mean that investors expect earnings growth in the future, so they're willing to pay more now.
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The average P/E ratio of stocks over a 50-year period of time in the United States has been about 16 times the earnings.
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This compares with a P/E ratio of 21.63 for the PSEi in the Philippines and 19.05 times for the Jakarta SE composite index in Indonesia.
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Stock market naysayers point to the fact that the S&P 500 currently trades at a fairly rich price-to-earnings (P/E) ratio of 21625.
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Even after the recent correction, U.S. stocks are trading at relatively high valuations, as measured by things like the price-to-earnings, or P/E, ratio.
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Stocks are commonly valued by comparing their price to their estimated profits over the next year, known as the price-to-earnings, or P/E, ratio.
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The forward P/E ratio expanded in July to 17.7 times, from 17.4 times, according to the equity and quantitative strategy team led by Savita Subramanian.
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The trailing S&P 543 P/E ratio stands at 254, above the 230 average over the past decade, according to Thomson Reuters I/B/E/S.
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"You've got the Shiller P/E (ratio) back over 30 times, last seen in the tech bubble, last seen just prior to the 1930s depression," he explained.
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Merck, whose shares have climbed in the past two days after positive developments for its cancer treatment Keytruda, holds a higher P/E ratio of 16.3 times.
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The P/E ratio is different for different sectors, which makes comparing any stock to any ratio other than that of its sector a potentially misleading signal.
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By comparison the full S&P 22017's P/E ratio contracted by about 22 percent to 21, and still sits above its historic average of 23.
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It is calculated by taking the difference between the earnings yield (inverse of the P/E ratio) of a stock or stock index, and a bond yield.
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Do&Co, which also has restaurant and event catering units, has a price earnings (p/e) multiple of 24 times, while Gategroup's p/e ratio is 33.
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Amazon, for instance, hit a trailing P/E ratio of 1,510.24 on December 28th, capping a year in which its stock jumped by as much as 125 percent.
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The company trades at 14.9 times analysts' earnings estimates for the fiscal year 2019, compared with a forward P/E ratio of 15.9 for the S&P 500.
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"There has been a tight correlation between population dependency ratios ... and the P/E ratio of the U.S. stock market," Fed researchers Zheng Liu and Mark Spiegel wrote.
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On average, the Nifty 500 index has traded at a P-E ratio of 18 in the past five years, much higher than the 14.22 level during the prior government.
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Smaller German peer Sixt Leasing trades at a P/E ratio of 17, but is less comparable due some one-offs and its booming e-commerce business, one analyst said.
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The benchmark S&P 20 stock index hovers just underneath an all-time peak, and its P/E ratio has recently been at the highest level in more than a year.
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ARM also looks relatively cheaper against historical standards, with its 12-month forward price-to-earnings (P/E) ratio now at a discount of 15 percent against its 10-year average.
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The mistake is when one compares the P/E ratio of an individual stock to the P/E of the overall S&P 500, because the latter is only an average.
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The initial terms valued Best at a 2019 forecast price-to-earnings (P/E) ratio of 17.7 to 20.4 times, higher than New York-listed Chinese peer ZTO Express Inc (ZTO.
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FactSet puts the current forward 12-month P/E ratio for the S&P 500 at 15.1, below the 5-year average of 16.4 but above the 10-year average of 14.5.
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An analysis using hedge fund analytics tool Kensho found the can still manage to rise during annual periods of multiple compression as earnings (the denominator in the P/E ratio) catch up.
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If tax and regulatory policy changes lead to higher earnings, any potential over-extension of the Dow's P/E ratio that investors see currently could come back into line with historical averages.
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A number of factors have driven Apple's P/E ratio up this year, Deutsche Bank analyst Jeriel Ong said, including an overall market drift and bearish expectations on Apple earlier this year.
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Yet in this entire market cycle, stocks' earnings yield (the inverse of the P/E ratio) has only been lower relative to the 10-year Treasury yield for one month: January 2018.
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That was just before the market plunged at the start of February, dropping 10 percent and confirming a correction, and in turn lowering the P/E ratio to 17 times earnings estimates.
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Data compiled by Nomura also showed the MSCI Thailand had a P/E ratio of 15.1 as of August 12, 2016, which was 2.6 standard deviation from the long term average of 11.
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Market capitalization to gross domestic product, the Shiller P/E ratio, and the median price to sales ratio are just a few important metrics that have put the current marketplace in rarified air.
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Apple began the year with a trailing P/E ratio just over 13, according to FactSet, below its five-year average of 16.2, before finishing 212 at 213, its highest point since 23.
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Costco's relative price-to-earnings ratio, which compares current P/E ratio to past P/E ratios, has come down to 1.8x from a peak level of 2.07x in late August of 2019.
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"If you're just looking at the P-E ratio, yeah it's high compared to historical averages, but you really need to look at them relative to other asset classes like bonds," he said.
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In fact, if you applied the same P/E ratio to Apple as the rest of the stock market, the technology juggernaut's shares would be 19 percent higher, according to calculations by Bespoke Investment Group.
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The stock has rallied over the past month, but given that its P/E ratio is 100x earnings, Lebenthal needs to see a stronger move to the upside before he would think of jumping in.
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The price-to-earnings (P/E) ratio for the S&P 500 index is now at 17.8, well above the euro STOXX 50 index's 13.85 times its 12-month forward earnings, according to Thomson Reuters Datastream.
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Nine of the S&P's 11 sectors are reporting a year-over-year decline in their net profit margins and the index's forward P/E ratio is currently 17, above both the five- and 10-year averages.
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The forward P/E ratio for the S&P 500 currently resides 4.6% below its post-financial crisis peak to give shares the opportunity to enjoy a healthy Santa Claus rally after the dust settles around Washington.
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A Reuters analysis of 10 Permian producers, including several that almost exclusively operate in Texas, carry an average price-to-earnings ratio of about 35, compared with the overall energy sector's P/E ratio of about 17.8.
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The Stoxx 600, an index of companies in the eurozone, trades at a trailing price to earnings ratio of 14.9, compared with a 22.7 P/E ratio for the S&P 500, according to Thomson Reuters data.
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Yet the S&P 500's forward P/E ratio would have to touch about 19 times to appear "peakish" and give investors real reason to get nervous, said Erin Gibbs, portfolio manager at S&P Global.
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It warned of "exuberance" in the financial markets, pointing out that the P/E ratio of Indian stocks is "substantially greater than the long-run average of 18 and not far from the frothy level reached in 2007".
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Among the 10 S&P 500 subsectors, that's the second-highest divergence between current and historical P/E, after energy (with a P/E ratio that is not "off the chart," thanks to the steep decline in oil prices).
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Homebuilder shares recently traded for 10 times 2018 profit estimates, compared to the overall market's P/E ratio of 17, even though the companies are expected to have double-digit earnings growth this year and next, the article said.
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But the S&P 17.93 financial sector's forward P/E ratio of 15.9 is below its long-term average of 17.4 while the S&P 500 financial sector's multiple of 13.8 compares with a long-term average of 12.8.
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The S&P 500 now has a trailing price-to-earnings (P/E) ratio of 17.1, near its historical average, even as earnings have fallen by 203 percent so far this quarter, according to Thomson Reuters I/B/E/S data.
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"At the moment, stocks are traded with a 50% discount to their emerging market peers based on the P/E ratio," Potapov said, referring to the price-to-earnings ratio that compares the current share price to earnings per share.
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The stock market hadn't seen a dip like this since two Januarys ago, while the price-to-earnings ratio of the S&P 500 hit 23.6 last week and a high P/E ratio often signals that a correction is coming.
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NEW YORK (Reuters) - Investors questioning whether record high U.S. stock prices mean it is time to bail out of equities should look beyond the elevated levels found in the widely used valuation tool, the price-to-earnings (P/E) ratio, experts say.
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If your typical food company has a P/E ratio under 15 and BYND is melting up without any earnings, it is a sign — not a guarantee — that is going to reach the end of investor enthusiasm and come back down to earth.
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Cramer Remix: This stock could be a heartbreaker Cramer: China could fall another 28% Cramer: Market oversold—start picking these stocks To determine if a P/E ratio is suspicious, Cramer said to keep in mind that valuing stocks has two components.
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Its true valuations are high: The forward P/E ratio (earnings estimates for the next four quarters) for the S&P 500 are at roughly 18.0, which is in the top 89 percent of where it has been since 1976, according to Goldman.
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Here's the ratio of housing prices to owner's equivalent rent, the sort of housing equivalent of the P/E ratio for stocks: Housing prices went extremely high relative to rental rates (and consumer prices more generally), then suffered a long and protracted fall.
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However, Nomura analysts suggested that Apple's current P/E ratio of 22021 times earnings, up 2250x since the iPhone 20203 launched and 22020x above its five-year average, was based primarily on market anticipation of a pending "218.5G supercycle," which may be misguided.
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The more commonly cited P/E ratio of the compared with forward earnings also is elevated, currently at 17.9 compared with the 10-year average of 14.1 "This boat is now standing room only," wrote Peter Boockvar, chief market analyst at the Lindsey Group.
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"Tech companies in Australia trade on a very solid price-to-earnings (P/E) ratio, so even a small miss would give the stock a good knock-around, and that would appear to be happening with Altium," James McGlew, executive director of corporate stockbroking at Argonaut said.
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And a simple plot of the market's forward P/E ratio against subsequent market returns shows that, since 1978, when starting at today's multiple of around 17.5 forecast earnings, ensuing seven- and 15-year nominal returns (before inflation) have been clustered in the mid- to low-single digits.
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"The P/E ratio on the S&P 500 tech sector is nowhere near where it was in 2000," Stovall said, adding that betting on stocks and sectors with stronger gains over the past year, as technology has in the last 12 months, to keep beating the market has been a winning strategy for more than two decades now.
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You know, if you went back, let's say, eight months ago, before the tax bill was passed, we were talking about a P/E ratio on the S&P about 403; and now, the earnings expectation, the growth projected for this year is so high, that now we're talking about a P/E of about 17.
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