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China Longyuan Power Group (HKSE:00916) PE Ratio : 10.65 (As of Oct. 31, 2024)


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What is China Longyuan Power Group PE Ratio?

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-10-31), China Longyuan Power Group's share price is HK$6.91. China Longyuan Power Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 was HK$0.65. Therefore, China Longyuan Power Group's PE Ratio for today is 10.65.

Warning Sign:

China Longyuan Power Group Corp Ltd stock PE Ratio (=39.06) is close to 3-year high of 39.06

During the past 13 years, China Longyuan Power Group's highest PE Ratio was 38.21. The lowest was 21.27. And the median was 28.70.

China Longyuan Power Group's EPS (Diluted) for the three months ended in Sep. 2024 was HK$0.22. Its EPS (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 was HK$0.65.

As of today (2024-10-31), China Longyuan Power Group's share price is HK$6.91. China Longyuan Power Group's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2024 was HK$0.86. Therefore, China Longyuan Power Group's PE Ratio without NRI ratio for today is 8.05.

During the past 13 years, China Longyuan Power Group's highest PE Ratio without NRI was 30.88. The lowest was 17.29. And the median was 23.69.

China Longyuan Power Group's EPS without NRI for the three months ended in Sep. 2024 was HK$0.22. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2024 was HK$0.86.

During the past 12 months, China Longyuan Power Group's average EPS without NRI Growth Rate was -22.60% per year. During the past 3 years, the average EPS without NRI Growth Rate was 4.00% per year. During the past 5 years, the average EPS without NRI Growth Rate was 6.90% per year. During the past 10 years, the average EPS without NRI Growth Rate was 10.90% per year.

During the past 13 years, China Longyuan Power Group's highest 3-Year average EPS without NRI Growth Rate was 26.80% per year. The lowest was -1.60% per year. And the median was 8.75% per year.

China Longyuan Power Group's EPS (Basic) for the three months ended in Sep. 2024 was HK$0.22. Its EPS (Basic) for the trailing twelve months (TTM) ended in Sep. 2024 was HK$0.72.

Back to Basics: PE Ratio


China Longyuan Power Group PE Ratio Historical Data

The historical data trend for China Longyuan Power Group's PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

China Longyuan Power Group PE Ratio Chart

China Longyuan Power Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.36 11.39 16.67 31.28 27.25

China Longyuan Power Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 29.39 27.25 25.35 28.70 35.78

Competitive Comparison of China Longyuan Power Group's PE Ratio

For the Utilities - Renewable subindustry, China Longyuan Power Group's PE Ratio, along with its competitors' market caps and PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


China Longyuan Power Group's PE Ratio Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, China Longyuan Power Group's PE Ratio distribution charts can be found below:

* The bar in red indicates where China Longyuan Power Group's PE Ratio falls into.



China Longyuan Power Group PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

China Longyuan Power Group's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=6.91/0.649
=10.65

China Longyuan Power Group's Share Price of today is HK$6.91.
China Longyuan Power Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was HK$0.65.


* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio, Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


China Longyuan Power Group  (HKSE:00916) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio.

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


China Longyuan Power Group PE Ratio Related Terms

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China Longyuan Power Group Business Description

Traded in Other Exchanges
Address
6 Fuchengmen North Street, Room 2006, 20th Floor, Block C, Xicheng District, Beijing, CHN
Longyuan is China's largest wind farm operator, with consolidated installed wind capacity of 27.8 gigawatts as of end-2023. It has wind farms spread across China, and has also expanded into other countries such as Canada and South Africa. Longyuan owns two coal-fired power plants in Jiangsu and operates other renewable assets such as solar, geothermal, and tidal energy on a limited scale. The consolidated installed capacity mix is about 78% wind, 5% thermal, and the remainder in other renewables. China Energy Investment, which was created through the merger of China Guodian Corporation and China Shenhua Group, is the major shareholder with a controlling stake of about 58.6%.
Executives
Blackrock, Inc. 2201 Interest of corporation controlled by you
Citigroup Inc. 2502 Approved lending agent
Gic Private Limited 2102 Investment manager
Wellington Management Group Llp 2102 Investment manager
Jpmorgan Chase & Co. 2201 Interest of corporation controlled by you
Brown Brothers Harriman & Co. 2502 Approved lending agent
The Bank Of New York Mellon Corporation 2201 Interest of corporation controlled by you
Lazard Asset Management Llc 2102 Investment manager

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