What is a good forward PE ratio?

Asked by: Isabelle Powlowski  |  Last update: March 26, 2026
Score: 4.2/5 (3 votes)

A “good” forward P/E ratio depends on the industry and market conditions. In general, a lower forward P/E may indicate that a stock is undervalued, while a higher ratio suggests expectations of future growth. Comparing a company's forward P/E to industry peers can provide additional context.

What is a healthy forward PE ratio?

Hims & Hers Health Forward PE Ratio Calculation

It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis.

Is 25 a high P/E ratio?

Again, these ratios are often used in a comparative sense, so what's good or bad depends on what you're comparing it against. To give you some sense of what the average for the market is, though, many value investors would refer to 20 to 25 as the average P/E ratio range.

What is a good PE ratio to buy at?

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 a PE ratio of 40 good or bad?

Usually, the market considers a P/E ratio below 20 as a good investment opportunity. 3. What if PE ratio is 40? A high P/E ratio, above 40, indicates investors willing to buy a stock at 40 times or more its earnings.

Forward P/E Ratio in Stocks Explained (Fundamental Analysis)

27 related questions found

Is 30 a good 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.

What is the PE ratio of Tesla?

According to Tesla's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 118.273. At the end of 2022 the company had a P/E ratio of 30.6.

What is the PE ratio of Apple?

Apple (AAPL) PE Ratio (TTM) : 38.55 (As of Jan. 14, 2025)

Is 7 a good PE ratio?

A good PE (Price to Earnings) ratio in India usually falls between 12 and 20, indicating that a company's stock is neither overvalued nor undervalued. This range balances risk and growth potential, making it ideal for Indian stock market investment.

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

S&P 500 P/E Ratio Forward Estimate is at a current level of 23.54, down from 24.59 last quarter and down from 28.27 one year ago. This is a change of -4.28% from last quarter and -16.71% from one year ago.

What is a perfect P to E ratio?

A better way to tell if a stock has a good P/E Ratio is to compare it against industry averages and growth expectations. Average P/E Ratios generally range from 20 to 25. While the lower a P/E Ratio is, the better, any P/E Ratio below this average is generally considered acceptable.

Is 50 a high PE ratio?

In fact, every industry or sector can have different P/E ratios. Hence, there is no standard measure of a high P/E ratio. It is always in comparison with the company's competitors and peers. If you look at the FMCG sector, most companies have a P/E ratio between 25 and 50.

What is Nike forward PE ratio?

What is Nike Forward PE Ratio? Nike's Forward PE Ratio for today is 34.07. Nike's PE Ratio without NRI for today is 20.52. Nike's PE Ratio (TTM) for today is 21.98.

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.

What PE ratio is a good buy?

Although the average standard P/E ratio is around 20 to 25. Anything below that would be considered a good price-to-earnings ratio, Some world famous invester consider below 15 is good PE Ratio to invest in the stock.

Is Nvidia overvalued?

Fair Value Estimate for Nvidia

With its 2-star rating, we believe Nvidia's stock is overvalued compared to our long-term fair value estimate of $105 per share, which implies an equity value of roughly $2.5 trillion.

What is Pfizer's average PE ratio?

The mean historical PE ratio of Pfizer over the last ten years is 20.1. The current 35.38 P/E ratio is 76% higher than the historical average. Looking back at the last ten years, PFE's PE ratio peaked in the Dec 2023 quarter at 75.76, with a price of $28.79 and an EPS of $0.38.

What's Tesla's PE ratio?

As of today (2025-01-12), Tesla's share price is $394.74. Tesla's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 was $3.65. Therefore, Tesla's PE Ratio (TTM) for today is 108.15.

What is Amazon's forward PE?

What is Amazon.com Forward PE Ratio? Amazon.com's Forward PE Ratio for today is 35.87. Amazon.com's PE Ratio without NRI for today is 45.97. Amazon.com's PE Ratio (TTM) for today is 47.57.

What is the PE ratio of Walmart?

As of today (2025-01-13), Walmart's share price is $93.00. Walmart's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2024 was $2.44. Therefore, Walmart's PE Ratio (TTM) for today is 38.16.

What is the PE ratio of Costco?

The mean historical PE ratio of Costco Wholesale over the last ten years is 35.42. The current 54.17 P/E ratio is 53% higher than the historical average. Looking back at the last ten years, COST's PE ratio peaked in the Nov 2024 quarter at 56.47, with a price of $964.01 and an EPS of $17.07.

What is the PE ratio of Google?

Google (GOOGL) PE Ratio (TTM) : 25.33 (As of Jan. 14, 2025)