Australian Ethical InvestmentASX:AEF +1.69%98 PE Ratio (TTM) is 20.05 as of Jun. 30, 2026, which is 60% below its 10-year median of 50.74. GuruFocus rates ASX:AEF with a GF Score™ of 98/100 and a GF Value™ of A$6.36 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 1,200 Asset Management companies, Australian Ethical Investment ranks worse than 71.08% on this metric.
During the past 12 months, Australian Ethical Investment's average EPS without NRIGrowth Rate was 56.70% per year.
During the past 3 years, the average EPS without NRIGrowth Rate was -71.60% per year.
During the past 5 years, the average EPS without NRIGrowth Rate was 55.80% per year.
During the past 10 years, the average EPS without NRIGrowth Rate was 60.90% per year.
During the past 13 years, Australian Ethical Investment's highest 3-Year average EPS without NRI Growth Rate was 451.50% per year. The lowest was -71.60% per year. And the median was 27.45% per year.
Australian Ethical Investment (ASX:AEF) 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).
Australian Ethical Investment PE Ratio (TTM) Related Terms
Australian Ethical Investment PE Ratio (TTM) 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.
Australian Ethical Investment PE Ratio (TTM) Chart
ASX:AEF vs BLK, BX, KKR: PE Ratio (TTM) Comparison
For the Asset Management subindustry, Australian Ethical Investment'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.
Australian Ethical Investment PE Ratio (TTM) vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Australian Ethical Investment's PE Ratio (TTM) distribution charts can be found below:
* The bar in red indicates where Australian Ethical Investment's PE Ratio (TTM) falls into.
Australian Ethical Investment 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.
Australian Ethical Investment's Share Price of today is A$4.21.
For company reported semi-annually, Australian Ethical Investment'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$0.21.
* 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.
Australian Ethical Investment (ASX:AEF) has a PE Ratio (TTM) of 20.05 as of Jun. 30, 2026. Trailing 12-month P/E ratio is the ratio of share price to a company's trailing 12-month earnings per share. View historical data on Australian Ethical Investment and its competitors. This is 60% below median its historical median of 50.74. Over the past decade, Australian Ethical Investment's PE Ratio (TTM) has ranged from 19.71 to 148.69. According to the industry distribution chart, Australian Ethical Investment ranks #853 out of 1200 companies in the Asset Management industry, placing it in the top 71.1%.
Is Australian Ethical Investment's PE Ratio (TTM) too high?
Australian Ethical Investment's current PE Ratio (TTM) of 20.05 is 60% below median its 10-year median of 50.74. Over the past 10 years, this metric has ranged from a low of 19.71 to a high of 148.69. The Asset Management industry median PE Ratio (TTM) is 11.45. Australian Ethical Investment's value of 20.05 is 75.2% above this industry median. Based on the distribution chart, Australian Ethical Investment ranks #853 out of 1200 companies in the Asset Management industry, which is below the industry midpoint. Overall, Australian Ethical Investment has a GF Score™ of 98/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Australian Ethical Investment's PE Ratio (TTM) compare to BLK and BX?
According to the Asset Management industry distribution chart, Australian Ethical Investment ranks #853 out of 1200 companies for PE Ratio (TTM). This places Australian Ethical Investment in the lower half of its industry. The industry median PE Ratio (TTM) is 11.45. Australian Ethical Investment's value of 20.05 is 75.2% above this benchmark. Historically, Australian Ethical Investment's own PE Ratio (TTM) has ranged from 19.71 to 148.69 over the past decade. While the company's 10-year median is 50.74 vs. the industry median of 11.45, Australian Ethical Investment has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PE Ratio (TTM) for an Asset Management company?
The median PE Ratio (TTM) among Asset Management companies is 11.45, based on 1,200 companies in the industry. Companies in the top quartile (top 25%) have a PE Ratio (TTM) significantly above this median, while those in the bottom quartile fall well below. However, PE Ratio (TTM) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Australian Ethical Investment's current PE Ratio (TTM) of 20.05 is 75.2% 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 PE Ratio (TTM) mean?
A high PE Ratio (TTM) can signal that a stock is expensive relative to its fundamentals. Trailing 12-month P/E ratio is the ratio of share price to a company's trailing 12-month earnings per share. View historical data on Australian Ethical Investment and its competitors. For the Asset Management industry, the median PE Ratio (TTM) is 11.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Australian Ethical Investment's current PE Ratio (TTM) is 20.05, which is 60% below median its own 10-year median of 50.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Ethical Investment stock overvalued right now?
Based on GuruFocus' analysis, Australian Ethical Investment (ASX:AEF) is currently considered Possible Value Trap. The stock's GF Value™ is A$6.36, compared to a current price of A$4.21 — trading 33.8% below its estimated fair value. The current PE Ratio (TTM) is 20.05, which is 60% below median its 10-year median of 50.74 and 75.2% above the Asset Management industry median of 11.45. Australian Ethical Investment's overall GF Score™ is 98/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PE Ratio (TTM) calculated?
PE Ratio (TTM) is calculated from a company's financial statements. For Australian Ethical Investment (ASX:AEF), the current PE Ratio (TTM) is 20.05 as of Jun. 30, 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 Australian Ethical Investment (ASX:AEF) Overvalued in 2026?
Based on GuruFocus' analysis, Australian Ethical Investment stock appears to be undervalued.
The current stock price of A$4.21 is trading 33.8% below its estimated GF Value™ of A$6.36.
GuruFocus considers Australian Ethical Investment to be Possible Value Trap.
Key valuation signals for ASX:AEF:
PE Ratio (TTM): 20.05 (60% below median its 10-year median of 50.74)
GF Value™: A$6.36 vs. price of A$4.21 (33.8% below fair value)
Industry Position: 75.2% above the Asset Management median (#853 of 1200)
No single metric tells the full story. See the ASX:AEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Australian Ethical Investment Business Description
Australian Ethical Investment Ltd is an Australian-based company engaged in the operating segment of Funds Management. The company is involved in acting as the responsible entity for a range of public offer ethically managed investment schemes and acting as the Trustee of the Australian Ethical Retail Superannuation Fund (Super Fund). The various products offered by the company are Super, Managed funds, ETFs, Insurance, and Pension.
98GF Score
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