Table of Contents
What is a typical 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.
What should be industry PE ratio?
Industry PE is the average price-to-earning ratio of a particular sector or industry. It’s used as a benchmark to compare the PE of a stock to the PE of an entire industry….Industry PE Meaning.
| Company | P/E |
|---|---|
| IndusInd Bank | 12.49 |
| Bandhan Bank | 16.71 |
What is a good PE to growth ratio?
As a general rule, a PEG ratio of 1.0 or lower suggests a stock is fairly priced or even undervalued. A PEG ratio above 1.0 suggests a stock is overvalued. In other words, investors who rely on the PEG ratio look for stocks that have a P/E ratio equal to or less than the company’s expected growth rate.
What is a good PE ratio TTM?
A P/E using TTM figures is often called the current P/E. In essence, the P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings.
What are the different types of P/E ratios?
There are two types of P/E: trailing and forward. The former is based on previous periods of earnings per share, while a leading or forward P/E ratioForward P/E RatioThe Forward P/E ratio divides the current share price by the estimated future (“forward”) earnings per share (EPS).
What is the average P/E ratio of a retail stock?
According to NYU’s Stern School, as of January 2019 and using trailing 12-month data, the average P/E ratio of the retail sector is 20.54.
Is a company’s P/E ratio more meaningful than other companies?
An individual company’s P/E ratio is much more meaningful when taken alongside P/E ratios of other companies within the same sector. For example, an energy company may have a high P/E ratio, but this may reflect a trend within the sector rather than one merely within the individual company.
What is the typical P/E ratio for the food and beverage sector?
Instead analysts often calculate other measures such as median to assess the typical P/E ratio within the food and beverage sector. In May 2015, the median P/E ratio was 24.3.