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Patterson (NAS:PDCO) PE Ratio

: 13.74 (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 (2024-02-23), Patterson's share price is $28.31. Patterson's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2023 was $2.06. Therefore, Patterson's PE Ratio for today is 13.74.

Good Sign:

Patterson Companies Inc stock PE Ratio (=13.52) is close to 5-year low of 12.19

During the past 13 years, Patterson's highest PE Ratio was 46.76. The lowest was 8.44. And the median was 20.09.

Patterson's EPS (Diluted) for the three months ended in Oct. 2023 was $0.42. Its EPS (Diluted) for the trailing twelve months (TTM) ended in Oct. 2023 was $2.06.

As of today (2024-02-23), Patterson's share price is $28.31. Patterson's EPS without NRI for the trailing twelve months (TTM) ended in Oct. 2023 was $2.27. Therefore, Patterson's PE Ratio without NRI ratio for today is 12.50.

During the past 13 years, Patterson's highest PE Ratio without NRI was 71.41. The lowest was 8.31. And the median was 20.99.

Patterson's EPS without NRI for the three months ended in Oct. 2023 was $0.50. Its EPS without NRI for the trailing twelve months (TTM) ended in Oct. 2023 was $2.27.

During the past 12 months, Patterson's average EPS without NRI Growth Rate was 26.70% per year. During the past 3 years, the average EPS without NRI Growth Rate was 42.40% per year. During the past 5 years, the average EPS without NRI Growth Rate was 2.20% per year. During the past 10 years, the average EPS without NRI Growth Rate was -5.00% per year.

During the past 13 years, Patterson's highest 3-Year average EPS without NRI Growth Rate was 48.00% per year. The lowest was -28.80% per year. And the median was 10.10% per year.

Patterson's EPS (Basic) for the three months ended in Oct. 2023 was $0.42. Its EPS (Basic) for the trailing twelve months (TTM) ended in Oct. 2023 was $2.07.

Back to Basics: PE Ratio


Patterson PE Ratio Historical Data

The historical data trend for Patterson'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.

Patterson Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.54 At Loss 19.96 14.94 12.79

Patterson Quarterly Data
Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23
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 12.79 15.10 12.79 15.02 14.79

Competitive Comparison

For the Medical Distribution subindustry, Patterson'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.


Patterson PE Ratio Distribution

For the Medical Distribution industry and Healthcare sector, Patterson's PE Ratio distribution charts can be found below:

* The bar in red indicates where Patterson's PE Ratio falls into.



Patterson 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.

Patterson's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=28.31/2.060
=13.74

Patterson's Share Price of today is $28.31.
Patterson's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.06.


* 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.


Patterson  (NAS:PDCO) 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.


Patterson PE Ratio Related Terms

Thank you for viewing the detailed overview of Patterson's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Patterson (NAS:PDCO) Business Description

Traded in Other Exchanges
Address
1031 Mendota Heights Road, Saint Paul, MN, USA, 55120
Patterson Companies Inc is a leading dental distributor and wholesaler of consumable products and equipment operating through two business segments, Patterson Dental, and Patterson Animal Health. The company's segment includes Dental, Animal Health, and Corporate. It generates maximum revenue from the Animal Health segment. Geographically, it derives a majority of its revenue from the United States.
Executives
Kevin Michael Barry officer: Chief Financial Officer 1031 MENDOTA HEIGHTS ROAD, ST. PAUL MN 55120
Donald Zurbay officer: Chief Financial Officer C/O ST. JUDE MEDICAL, INC., ONE ST JUDE MEDICAL DRIVE, ST. PAUL MN 55117
Timothy E Rogan officer: President - Dental 1031 MENDOTA HEIGHTS ROAD, ST. PAUL MN 55120
Les B Korsh officer: VP, General Counsel 1031 MENDOTA HEIGHTS ROAD, ST. PAUL MN 55110
Meenu Agarwal director 7246 E MERCER WAY, MERCER ISLAND WA 98040
Samantha L Bergeson officer: CHRO 1031 MENDOTA HEIGHTS ROAD, ST. PAUL MN 55120
Andrea L. Frohning officer: Chief Human Resources Officer C/O DENTSLY SIRONA INC, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Philip Mckoy director 120 BROADWAY, SUITE 200, SANTA MONICA CA 90401
Jody H Feragen director 1 HORMEL PLACE, AUSTIN TX 55912
Eric R Shirley officer: President-Patterson Dental 1031 MENDOTA HEIGHTS ROAD, ST. PAUL MN 55120
Francis Joseph Malecha director 9900 WEST 109TH STREET, SUITE 100, OVERLAND PARK KS 66210
Robert Frenzel director 414 NICOLLET MALL, MINNEAPOLIS MN 55401
Dennis W Goedken officer: Interim CFO 1031 MENDOTA HEIGHTS ROAD, ST. PAUL MN 55120
Ann B Gugino officer: Vice President 1031 MENDOTA HEIGHTS ROAD, ST. PAUL MN 55120
John D Buck director 4201 GULF SHORE BLVD NORTH, APT 1703N, NAPLES FL 34103