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.
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.
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.
One helpful benchmark when investing is to consider that the average forward P/E ratio of the S&P 500 for the last 25 years is 16-17x. Therefore, assuming the stock you are looking at has similar or better growth and risk versus the average S&P 500 company, buying at anything less than 16x is likely a bargain.
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. And again, like golf, the lower the P/E ratio a company has, the better an investment the metric is saying it is.
According to Tesla's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 115.76. At the end of 2022 the company had a P/E ratio of 30.6.
Apple (AAPL) PE Ratio (TTM) : 38.55 (As of Jan. 14, 2025)
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.
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.
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.
Why is Amazon's price-to-earnings ratio so high? It's simple—Amazon doesn't trade based on earnings. Amazon stock's P/E ratio is so high because the company continues to invest in R&D, which increases their capital expenditure AND lower their reported earnings.
S&P 500 P/E Ratio is at a current level of 28.77, up from 27.87 last quarter and up from 23.27 one year ago. This is a change of 3.23% from last quarter and 23.62% from one year ago. The S&P 500 PE Ratio is the price to earnings ratio of the constituents of the S&P 500.
P/E ratio as of December 2024 (TTM): 15.1
According to Best Buy's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 15.0995. At the end of 2022 the company had a P/E ratio of 11.9.
A P/E ratio of 5 could be considered good or bad depending on the industry and the company's growth prospects. For example, the industry average P/E for oil and gas companies is 6.3. This means that if an E&P company is trading for below that, the company is currently priced cheaper than the industry average.
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.
Google (GOOGL) PE Ratio (TTM) : 25.47 (As of Jan. 12, 2025)
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.
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.
According to Coca-Cola's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 24.759. At the end of 2022 the company had a P/E ratio of 28.9.
The PE ratio for Amazon Com stock stands at 45.9 as of Jan 10, 2025. This is calculated based on the TTM EPS of $4.77 and the stock price of $218.94 per share.
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.
P/E ratio as of January 2025 (TTM): 6.32
According to Ford's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 6.32143. At the end of 2022 the company had a P/E ratio of -23.3.