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Why does Apple have a high PE ratio?
With earnings growth that’s superior to most other companies of late, Apple has been doing relatively well. The P/E is probably high because investors think this strong earnings performance will continue. The chart above shows us that the company is valued more expensively than both the market and sector.
Does Amazon have a high PE ratio?
Compared to the aggregate P/E ratio of 19.13 in the Internet Retail industry, Amazon.com Inc. has a higher P/E ratio of 152.06.
Is Amazons PE ratio good?
The lower the PE, the higher the value. For comparison, the S&P 500’s PE is currently at about 34.6, more than double its long-term average of 15.9. Amazon’s PE is currently 58.9. That number is well above the S&P 500 average as a whole.
Why would one company have a higher P E ratio than another?
A higher P/E ratio shows that investors are willing to pay a higher share price today because of growth expectations in the future. The high multiple indicates that investors expect higher growth from the company compared to the overall market. A high P/E does not necessarily mean a stock is overvalued.
Why should Amazon trade at a higher PE ratio than Apple?
34 One of the reasons Amazon’s P/E is so much higher than Apple’s is that its efforts to expand aggressively on a wide scale have helped keep earnings somewhat suppressed and the P/E ratio high. The P/E ratio should be used with a variety of other analysis tools to analyze a stock.
Does Apple have a good price to earnings ratio?
The Verdict On Apple’s P/E Ratio Apple trades on a P/E ratio of 17.7, which is fairly close to the US market average of 17.4.
What is Amazon’s price to earnings ratio?
PE Ratio Related Metrics
PS Ratio | 3.891 |
---|---|
Earnings Yield | 1.47\% |
Market Cap | 1.759T |
PEGY Ratio | 1.365 |
Operating PE Ratio | 62.99 |
What is Amazon’s current price to earnings ratio?
As of today (2021-12-13), Amazon.com’s share price is $3391.35. Amazon.com’s Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $51.12. Therefore, Amazon.com’s PE Ratio for today is 66.34.
What is Amazon’s current price-to-earnings ratio?
What is Amazon stock PE ratio?
Amazon PE ratio as of December 03, 2021 is 66.31.