STMicroelectronics NV (NYSE:STM) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income 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 .
STMicroelectronics NV Forward PE Ratio Related Terms
STMicroelectronics NV Forward PE Ratio Historical Data
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The historical data trend for STMicroelectronics NV's Forward 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.
STMicroelectronics NV Forward PE Ratio Chart
STMicroelectronics NV Annual Data
Trend
2015-12
2016-12
2017-12
2018-12
2019-12
2020-12
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
24.21
25.77
16.81
9.62
20.00
26.18
20.92
8.99
12.67
18.53
19.88
STMicroelectronics NV Quarterly Data
2015-12
2016-03
2016-06
2016-09
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
24.21
11.56
37.45
18.12
25.77
25.32
18.69
18.15
16.81
17.54
16.84
11.49
9.62
11.79
15.87
14.66
20.00
14.93
34.84
19.84
26.18
24.63
21.46
21.10
20.92
13.91
10.30
7.32
8.99
12.64
11.60
10.06
12.67
14.79
18.62
11.31
18.53
28.11
43.12
19.73
19.88
25.03
STM vs NVDA, AVGO, MU: Forward PE Ratio Comparison
For the Semiconductors subindustry, STMicroelectronics NV's Forward PE Ratio, along with its competitors' market caps and Forward 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.
STMicroelectronics NV Forward PE Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, STMicroelectronics NV's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where STMicroelectronics NV's Forward PE Ratio falls into.
STMicroelectronics NV 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. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
STMicroelectronics NV (STM) has a Forward PE Ratio of 56.39 as of Jul. 07, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on STMicroelectronics NV and its competitors. According to the industry distribution chart, STMicroelectronics NV ranks #354 out of 546 companies in the Semiconductors industry, placing it in the top 64.8%.
Is STMicroelectronics NV's Forward PE Ratio too high?
STMicroelectronics NV's current Forward PE Ratio is 56.39. The Semiconductors industry median Forward PE Ratio is 35.93. STMicroelectronics NV's value of 56.39 is 56.9% above this industry median. Based on the distribution chart, STMicroelectronics NV ranks #354 out of 546 companies in the Semiconductors industry, which is below the industry midpoint. Overall, STMicroelectronics NV has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does STMicroelectronics NV's Forward PE Ratio compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, STMicroelectronics NV ranks #354 out of 546 companies for Forward PE Ratio. This places STMicroelectronics NV in the lower half of its industry. The industry median Forward PE Ratio is 35.93. STMicroelectronics NV's value of 56.39 is 56.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Semiconductors company?
The median Forward PE Ratio among Semiconductors companies is 35.93, based on 546 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. STMicroelectronics NV's current Forward PE Ratio of 56.39 is 56.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on STMicroelectronics NV and its competitors. For the Semiconductors industry, the median Forward PE Ratio is 35.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. STMicroelectronics NV's current Forward PE Ratio is 56.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is STMicroelectronics NV stock overvalued right now?
Based on GuruFocus' analysis, STMicroelectronics NV (STM) is currently considered Significantly Overvalued. The stock's GF Value™ is $30.16, compared to a current price of $71.39 — trading 136.7% above its estimated fair value. The current Forward PE Ratio is 56.39 and 56.9% above the Semiconductors industry median of 35.93. STMicroelectronics NV's overall GF Score™ is 72/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For STMicroelectronics NV (STM), the current Forward PE Ratio is 56.39 as of Jul. 07, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is STMicroelectronics NV (STM) Overvalued in 2026?
Based on GuruFocus' analysis, STMicroelectronics NV stock appears to be overvalued.
The current stock price of $71.39 is trading 136.7% above its estimated GF Value™ of $30.16.
GuruFocus considers STMicroelectronics NV to be Significantly Overvalued.
Key valuation signals for STM:
Forward PE Ratio: 56.39
GF Value™: $30.16 vs. price of $71.39 (136.7% above fair value)
Industry Position: 56.9% above the Semiconductors median (#354 of 546)
No single metric tells the full story. See the STM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
A merger between Italian firm SGS Microelettronica and the nonmilitary business of Thomson Semiconducteurs in France formed STMicroelectronics in 1987. STMicroelectronics is a leader in a variety of semiconductor products, including analog chips, discrete power semiconductors, microcontrollers, and sensors. It is an especially prominent chip supplier to the industrial and automotive industries.
72GF Score
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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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