During the past 7 years, Morphic Ethical Equity Fund's highest 3-Year average EPS without NRI Growth Rate was 71.80% per year. The lowest was -16.90% per year. And the median was 46.30% per year.
Morphic Ethical Equity Fund (ASX:MEC) 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.
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.
Morphic Ethical Equity Fund PE Ratio Related Terms
Morphic Ethical Equity Fund PE Ratio Historical Data
* 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.
For the Asset Management subindustry, Morphic Ethical Equity Fund'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.
Morphic Ethical Equity Fund PE Ratio vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Morphic Ethical Equity Fund's PE Ratio distribution charts can be found below:
* The bar in red indicates where Morphic Ethical Equity Fund's PE Ratio falls into.
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.
Morphic Ethical Equity Fund's Share Price of today is A$1.355.
For company reported semi-annually, Morphic Ethical Equity Fund's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$0.11.
* 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.
Morphic Ethical Equity Fund (ASX:MEC) has a PE Ratio of 12.21 as of Jun. 25, 2026. P/E ratio is the ratio of share price to a company's earnings per share. View historical data on Morphic Ethical Equity Fund and its competitors. This is 56% above median its historical median of 7.81. Over the past decade, Morphic Ethical Equity Fund's PE Ratio has ranged from 3.27 to 37.50.
Is Morphic Ethical Equity Fund's PE Ratio too high?
Morphic Ethical Equity Fund's current PE Ratio of 12.21 is 56% above median its 10-year median of 7.81. Over the past 10 years, this metric has ranged from a low of 3.27 to a high of 37.50. Overall, Morphic Ethical Equity Fund has a GF Score™ of 35/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Morphic Ethical Equity Fund's PE Ratio compare to BLK and BX?
Morphic Ethical Equity Fund's PE Ratio of 12.21 can be compared against companies in the Asset Management industry. Historically, Morphic Ethical Equity Fund's own PE Ratio has ranged from 3.27 to 37.50 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PE Ratio for an Asset Management company?
A good PE Ratio depends on the Asset Management industry context. However, PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PE Ratio mean?
A high PE Ratio can signal that a stock is expensive relative to its fundamentals. P/E ratio is the ratio of share price to a company's earnings per share. View historical data on Morphic Ethical Equity Fund and its competitors. Morphic Ethical Equity Fund's current PE Ratio is 12.21, which is 56% above median its own 10-year median of 7.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morphic Ethical Equity Fund stock overvalued right now?
Based on GuruFocus' analysis, Morphic Ethical Equity Fund (ASX:MEC) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.78, compared to a current price of A$1.36 — trading 73.7% above its estimated fair value. The current PE Ratio is 12.21, which is 56% above median its 10-year median of 7.81. Morphic Ethical Equity Fund's overall GF Score™ is 35/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PE Ratio calculated?
PE Ratio is calculated from a company's financial statements. For Morphic Ethical Equity Fund (ASX:MEC), the current PE Ratio is 12.21 as of Jun. 25, 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 Morphic Ethical Equity Fund (ASX:MEC) Overvalued in 2026?
Based on GuruFocus' analysis, Morphic Ethical Equity Fund stock appears to be overvalued.
The current stock price of A$1.36 is trading 73.7% above its estimated GF Value™ of A$0.78.
GuruFocus considers Morphic Ethical Equity Fund to be Significantly Overvalued.
Key valuation signals for ASX:MEC:
PE Ratio: 12.21 (56% above median its 10-year median of 7.81)
GF Value™: A$0.78 vs. price of A$1.36 (73.7% above fair value)
No single metric tells the full story. See the ASX:MEC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Morphic Ethical Equity Fund Ltd is an investment company. Its investment objective is to provide superior risk-adjusted returns to shareholders, comprising a combination of capital growth and income, thus allowing franked dividends to be paid to shareholders when prudent, and provided the company has sufficient profit reserves and franking credits available. The company invests in a portfolio of internationally listed securities screened to exclude entities involved in environmentally damaging activities (including coal and uranium, mining and oil and gas), intensive farming and aquaculture, tobacco, armaments, alcohol, and gambling. It earns revenue from dividend income, interest income, and other returns from the investment portfolio.
35GF Score
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