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Genuine Parts Co (NYSE:GPC) PE Ratio

: 15.58 (As of Today)
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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 (2024-04-13), Genuine Parts Co's share price is $145.38. Genuine Parts Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $9.33. Therefore, Genuine Parts Co's PE Ratio for today is 15.58.

Good Sign:

Genuine Parts Co stock PE Ratio (=15.58) is close to 3-year low of 14.38

During the past 13 years, Genuine Parts Co's highest PE Ratio was 392.53. The lowest was 13.37. And the median was 19.84.

Genuine Parts Co's EPS (Diluted) for the three months ended in Dec. 2023 was $2.26. Its EPS (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $9.33.

As of today (2024-04-13), Genuine Parts Co's share price is $145.38. Genuine Parts Co's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $9.33. Therefore, Genuine Parts Co's PE Ratio without NRI ratio for today is 15.58.

During the past 13 years, Genuine Parts Co's highest PE Ratio without NRI was 23.92. The lowest was 10.08. And the median was 19.29.

Genuine Parts Co's EPS without NRI for the three months ended in Dec. 2023 was $2.26. Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $9.33.

During the past 12 months, Genuine Parts Co's average EPS without NRI Growth Rate was 11.90% per year. During the past 3 years, the average EPS without NRI Growth Rate was 21.00% per year. During the past 5 years, the average EPS without NRI Growth Rate was 13.70% per year. During the past 10 years, the average EPS without NRI Growth Rate was 7.30% per year.

During the past 13 years, Genuine Parts Co's highest 3-Year average EPS without NRI Growth Rate was 21.00% per year. The lowest was -3.00% per year. And the median was 5.60% per year.

Genuine Parts Co's EPS (Basic) for the three months ended in Dec. 2023 was $2.27. Its EPS (Basic) for the trailing twelve months (TTM) ended in Dec. 2023 was $9.38.

Back to Basics: PE Ratio


Genuine Parts Co PE Ratio Historical Data

The historical data trend for Genuine Parts Co'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.

Genuine Parts Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.05 At Loss 22.50 20.88 14.84

Genuine Parts Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PE Ratio 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 Premium Member Only Premium Member Only Premium Member Only 20.88 19.16 19.79 16.33 14.84

Competitive Comparison

For the Specialty Retail subindustry, Genuine Parts Co'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.


Genuine Parts Co PE Ratio Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Genuine Parts Co's PE Ratio distribution charts can be found below:

* The bar in red indicates where Genuine Parts Co's PE Ratio falls into.



Genuine Parts Co 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.

Genuine Parts Co's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=145.38/9.330
=15.58

Genuine Parts Co's Share Price of today is $145.38.
Genuine Parts Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $9.33.


* 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.


Genuine Parts Co  (NYSE:GPC) 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.


Genuine Parts Co PE Ratio Related Terms

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Genuine Parts Co (NYSE:GPC) Business Description

Traded in Other Exchanges
Address
2999 Wildwood Parkway, Atlanta, GA, USA, 30339
Genuine Parts sells automotive parts (nearly two thirds of net sales) and industrial components. The company sells car and truck parts to commercial and retail customers through roughly 9,800 stores worldwide, most of which are independently owned. Its industrial unit, primarily operating under the Motion Industries banner in the United States, supplies bearings, power transmission, industrial automation, hydraulic, and pneumatic components to maintenance, repair, and original equipment manufacturer clients.
Executives
Gary P Fayard director ONE COCA COLA PLAZA, ATLANTA GA 30313
John D Johns director PO BOX 2606, BIRMINGHAM AL 35202
Juliette Williams Pryor director 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
John R Holder director 999 PEACHTREE ST NE, SUITE 688, ATLANTA GA 30309
Donna Westbrook Hyland director 3344 PEACHTREE ROAD NE STE 1800, ATLANTA GA 30326
Paul Russell Hardin director 2999 WILDWOOD PARKWAY SE, ATLANTA GA 30339
Richard Jr Cox director 2999 WILDWOOD PARKWAY, ATLANTA GA 30339
Paul D Donahue director, officer: Chairman and CEO 214 N TRYON STREET, CHARLOTTE NC 28202
Loudermilk Robert C Jr director 309 E. PACES FERRY RD N.E., ATLANTA GA 30305-2377
Darren M Rebelez director 1722 ROUTH STREET, SUITE 1000, DALLAS TX 75201-2502
Randall P Breaux officer: Group President, GPC N.A. 5711 R S BOREHAM JR ST, P O BOX 2400, FORT SMITH AR 72902
Naveen Krishna officer: EVP, CIDO 2999 WILDWOOD PKWY, ATLANTA GA 30339
Wendy B Needham director 2999 CIRCLE 75 PRKWAY, ATLANTA GA 30339
Christopher T Galla officer: SVP and General Counsel 2999 WILDWOOD PKWY, ATLANTA GA 30339
Wood E Jenner Iii director SUNTRUST BANKS INC, P O BOX 4418 MC643, ATLANTA GA 30302

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