What is an acceptable price to earnings ratio?

P/E ratio indicates what amount an investor is paying against every dollar of earnings. A higher P/E ratio indicates that an investor is paying more for each unit of net income. So P/E ratio between 12 to 15 is acceptable. For example, if company A shares are trading at $50/share and most recent EPS is $2/share.

What is a good EPS for retail?

The current P/E ratio for the retail sector, an average of the subsectors’ ratios, is 64.65 (current as of January 2021). The average trailing P/E ratio for the retail industry in January 2021 was 22.70.

What is the industry average price earnings ratio?

The average P/E for the S&P 500 has historically ranged from 13 to 15. For example, a company with a current P/E of 25, above the S&P average, trades at 25 times earnings. The high multiple indicates that investors expect higher growth from the company compared to the overall market.

Is a really low PE ratio good?

In short, the P/E ratio shows what the market is willing to pay today for a stock based on its past or future earnings. 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 Tesla’s PE ratio good?

Depending on the particular phase of a business cycle, some industries will perform better than others. Tesla Inc. has a better P/E ratio of 967.07 than the aggregate P/E ratio of 15.34 of the Auto Manufacturers industry.

What is Amazon’s P E ratio?

PE Ratio Range, Past 5 Years

Minimum	58.88	Mar 31 2021
Maximum	303.51	Nov 27 2017
Average	137.71

What is Netflix PE ratio?

About PE Ratio (TTM) Netflix has a trailing-twelve-months P/E of 53.29X compared to the Broadcast Radio and Television industry’s P/E of 17.96X. Price to Earnings Ratio or P/E is price / earnings. It is the most commonly used metric for determining a company’s value relative to its earnings.

What is Tesla’s P E ratio 2020?

Tesla’s latest twelve months p/e ratio is 557.4x. Tesla’s p/e ratio for fiscal years ending December 2016 to 2020 averaged 211.2x. Tesla’s operated at median p/e ratio of -37.2x from fiscal years ending December 2016 to 2020. Looking back at the last five years, Tesla’s p/e ratio peaked in December 2020 at 1,255.0x.

What is Apple’s PE ratio?

PE Ratio Range, Past 5 Years

Minimum	11.69	Jan 03 2019
Maximum	41.80	Dec 28 2020
Average	21.07

What is Amazon’s current PE ratio?

As of today (2021-07-31), Amazon.com’s share price is $3327.59. Amazon.com’s Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2021 was $52.55. Therefore, Amazon.com’s PE Ratio for today is 63.32.

What is a food PE ratio?

The P/E ratio is a relative valuation metric calculated as the current stock price divided by earnings per share. A low P/E ratio can indicate a company without growth potential or a company that is undervalued. Below are the P/E ratios for the three largest food and beverage companies as of June 2020.

What is Walmart’s PE ratio?

As of Q2 2020, Walmart’s P/E ratio is about 23.88, meaning that WMT shares trade in the market at around 24 times the earnings per share.

What is a good EPS?

Generally speaking, a “good” EPS should be a positive figure that has a long track record of consistent growth. But in addition to that, an EPS should be considered high relative to the current price of the stock in order to be attractive for investors.

Is it better to have a higher or lower EPS?

Earnings per share (EPS) is a company’s net profit divided by the number of common shares it has outstanding. 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 healthy PE ratio?

What is Amazon’s PEG ratio?

Valuation Measures

As of Date: 8/12/2021 Current	12/31/2020
Trailing P/E	57.52	95.23
Forward P/E 1	57.47	61.35
PEG Ratio (5 yr expected) 1	1.79	1.26
Price/Sales (ttm)	3.82	4.76

What’s the price to earnings ratio of the retail sector?

According to NYU’s Stern School, as of January 2019 and using trailing 12-month data, the average price-to-earnings (P/E) ratio of the retail sector is 20.54.

What’s the average P / E ratio in the stock market?

Things to Remember. The average market P/E ratio is 20-25 times earnings. The P/E ratio can use estimated earnings to get the forward looking P/E ratio. Companies that are losing money do not have a P/E ratio. You can expand your financial vocabulary by subscribing to our Term of the Day newsletter.

What do you mean by price to earnings ratio?

The price-to-earnings ratio (P/E ratio) is defined as a ratio for valuing a company that measures its current share price relative to its per-share earnings. A relative valuation model is a business valuation method that compares a firm’s value to that of its competitors to determine the firm’s financial worth.

What is the P / E ratio of online retail companies?

This value ranges from a low of 11.74, which is the average of automotive retail companies, to a high of 38.96, which is the average of online retail companies. Different industries may calculate their earnings differently and at different times, and so comparing P/E ratios for companies in different industries may not be suitable.