The PE Ratio (TTM), 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 (2024-04-26), Sagent Pharmaceuticals's share price is
$21.76.
Sagent Pharmaceuticals's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2016 was $-0.77. Therefore, Sagent Pharmaceuticals's PE Ratio (TTM) for today is At Loss.
The historical rank and industry rank for Sagent Pharmaceuticals's PE Ratio (TTM) or its related term are showing as below:
SGNT'
s PE Ratio (TTM) Range Over the Past 10 Years
Min: At Loss Med: At Loss Max: At Loss
Current: At Loss
SGNT's PE Ratio (TTM) is not ranked
in the Drug Manufacturers industry.
Industry Median: 23.73
vs SGNT: At Loss
Sagent Pharmaceuticals PE Ratio (TTM) Historical Data
The historical data trend for Sagent Pharmaceuticals's PE Ratio (TTM) 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.
Competitive Comparison of Sagent Pharmaceuticals's PE Ratio (TTM)
For the Drug Manufacturers - Specialty & Generic subindustry, Sagent Pharmaceuticals's PE Ratio (TTM), along with its competitors' market caps and PE Ratio (TTM) 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.
Sagent Pharmaceuticals's PE Ratio (TTM) Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sagent Pharmaceuticals's PE Ratio (TTM) distribution charts can be found below:
* The bar in red indicates where Sagent Pharmaceuticals's PE Ratio (TTM) falls into.
Sagent Pharmaceuticals PE Ratio (TTM) Calculation
The PE Ratio (TTM), 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.
Sagent Pharmaceuticals's Share Price of today is $21.76.
Sagent Pharmaceuticals's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.77.
* 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 Ratio (TTM)s used by different investors. They are Trailing Twelve Month PE Ratio (TTM) or PE Ratio (TTM) (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio (TTM) based on inflation-adjusted normalized PE Ratio (TTM) is called Shiller PE Ratio, after Yale professor Robert Shiller.
In the calculation of PE Ratio (TTM), 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.
Sagent Pharmaceuticals (NAS:SGNT) PE Ratio (TTM) Explanation
The PE Ratio (TTM) 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 (TTM) 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 (TTM) is positive. Also for stocks with the same PE Ratio (TTM), the one with faster growth business is more attractive.
If a company loses money, the PE Ratio (TTM) 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 (TTM) divided by the growth ratio. He thinks a company with a PE Ratio (TTM) 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 (TTM) of 20, instead of a company growing 10% a year with a PE Ratio (TTM) of 10.
Because the PE Ratio (TTM) measures how long it takes to earn back the price you pay, the PE Ratio (TTM) 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.
Investors need to be aware that the PE Ratio (TTM) 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 Ratio (TTM)s are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio (TTM) is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .
PE Ratio (TTM) 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 (TTM).
Sagent Pharmaceuticals PE Ratio (TTM) Related Terms
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Sagent Pharmaceuticals (Sagent Pharmaceuticals) Business Description
Sagent Pharmaceuticals Inc is a Delaware corporation that was incorporated in 2011. The Company was initially founded in 2006 as Sagent Holding Co., a Cayman Islands company, it reincorporated as Sagent Pharmaceuticals, Inc., a Delaware corporation, in connection with its initial public offering, on April 26, 2011. The Company is engaged in the developing, manufacturing, sourcing and marketing injectable pharmaceutical products, which it sells primarily in the United States of America. The Company primarily focuses on generic injectable pharmaceuticals, which provide customers a lower-cost alternative to branded products when applicable patents have expired or been declared invalid, or when the products are determined not to infringe the patents of others, it offers customers, products across anti-infective, oncolytic and critical care indications in a variety of presentations, including single- and multi-dose vials and ready-to-use pre-filled syringes and premix bags. It generally seeks to develop injectable products where the form or packaging of the product can be enhanced to improve delivery, product safety or end-user convenience. At the year end, the Company's product portfolio has grown to a total of 53 products which can be classified into the following three product categories: anti-infective, oncology and critical care. Its anti-infective products assist in the treatment of various infections and related symptoms, its oncology products are used in the treatment of cancer and cancer-related medical problems, and its critical care products are used in a variety of critical care applications and include anesthetics, cardiac medications, steroidal products and sedatives. The Company distributes its products primarily through pharmaceutical wholesalers and, to a lesser extent, specialty distributors that focus on particular therapeutic product categories, for use by a wide variety of end-users, including U.S. hospitals, integrated delivery networks and alternative site facilities. The Company's principal competitors include Fresenius Kabi, a division of Fresenius SE, Hospira, Inc., Pfizer Inc., Sandoz International GmbH, a division of Novartis AG, Teva Pharmaceutical Industries Ltd. and West-Ward Pharmaceutical Corp. The Company is subject to extensive regulation by governmental authorities in the U.S. and in other countries.
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