>
GURUFOCUS.COM > STOCK LIST > Financial Services > Asset Management > Franklin Resources Inc (NYSE:BEN) > Definitions > PE Ratio
Switch to:

Franklin Resources PE Ratio

: 6.34 (As of Today)
View and export this data going back to 1986. Start your Free Trial

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 (2022-07-02), Franklin Resources's share price is $23.58. Franklin Resources's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2022 was $3.72. Therefore, Franklin Resources's PE Ratio for today is 6.34.

Good Sign:

Franklin Resources Inc stock PE Ratio (=6.26) is close to 10-year low of 6.26


The historical rank and industry rank for Franklin Resources's PE Ratio or its related term are showing as below:

BEN' s PE Ratio Range Over the Past 10 Years
Min: 6.25   Med: 13.58   Max: 39.2
Current: 6.34


During the past 13 years, the highest PE Ratio of Franklin Resources was 39.20. The lowest was 6.25. And the median was 13.58.


BEN's PE Ratio is ranked better than
59.62% of 1320 companies
in the Asset Management industry
Industry Median: 7.92 vs BEN: 6.34

Franklin Resources's Earnings per Share (Diluted) for the three months ended in Mar. 2022 was $0.68. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2022 was $3.72.

As of today (2022-07-02), Franklin Resources's share price is $23.58. Franklin Resources's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2022 was $3.72. Therefore, Franklin Resources's PE Ratio without NRI for today is 6.34.

During the past 13 years, Franklin Resources's highest PE Ratio without NRI was 39.20. The lowest was 6.25. And the median was 13.58.

Franklin Resources's EPS without NRI for the three months ended in Mar. 2022 was $0.68. Its EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2022 was $3.72.

During the past 12 months, Franklin Resources's average EPS without NRI Growth Rate was 73.80% per year. During the past 3 years, the average EPS without NRI Growth Rate was 36.90% per year. During the past 5 years, the average EPS without NRI Growth Rate was -1.20% per year. During the past 10 years, the average EPS without NRI Growth Rate was -4.10% per year.

During the past 13 years, Franklin Resources's highest 3-Year average EPS without NRI Growth Rate was 102.50% per year. The lowest was -25.00% per year. And the median was 15.65% per year.

Franklin Resources's EPS (Basic) for the three months ended in Mar. 2022 was $0.68. Its EPS (Basic) for the trailing twelve months (TTM) ended in Mar. 2022 was $3.74.


Franklin Resources PE Ratio Historical Data

The historical data trend for Franklin Resources'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.

Franklin Resources Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.79 21.88 12.28 12.80 8.32

Franklin Resources Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 13.83 13.22 8.32 8.86 7.51

Competitive Comparison

For the Asset Management subindustry, Franklin Resources'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.

   

Franklin Resources PE Ratio Distribution

For the Asset Management industry and Financial Services sector, Franklin Resources's PE Ratio distribution charts can be found below:

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



Franklin Resources 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.

Franklin Resources's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=23.58/3.720
=6.34

Franklin Resources's Share Price of today is $23.58.
Franklin Resources's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $3.72.

* 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 or PE Ratio (TTM), 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.


Franklin Resources  (NYSE:BEN) 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.


Franklin Resources PE Ratio Related Terms

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


Franklin Resources Business Description

Franklin Resources logo
Industry
Financial Services » Asset Management NAICS : 523930 SIC : 6282
Address
One Franklin Parkway, San Mateo, CA, USA, 94403
Franklin Resources provides investment services for individual and institutional investors. At the end of December 2021, Franklin had $1.578 trillion in managed assets, composed primarily of equity (36%), fixed-income (40%), multi-asset/balanced (10%) funds, alternatives (10%) and money market funds. Distribution tends to be weighted more toward retail investors (53% of AUM) investors, as opposed to institutional (45%) and high-net-worth (2%) clients. Franklin is also one of the more global firms of the U.S.-based asset managers we cover, with more than 35% of its AUM invested in global/international strategies and just over 25% of managed assets sourced from clients domiciled outside the United States.
Executives
Pigott Mark C director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: PIGOTT MARK C a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Barker Peter K director 150 N ORANGE GROVE BLVD PASADENA CA 91103
Stein Laura director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: STEIN LAURA a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Yang Geoffrey Y director 3000 SAND HILL ROAD, 2-290 MENLO PARK CA 94025
Spector Adam Benjamin officer: EVP, Global Advisory Services 620 EIGHTH AVENUE 49TH FLOOR NEW YORK NY 10018
Tyle Craig Steven officer: EVP & General Counsel ONE FRANKLIN PARKWAY SAN MATEO CA 94403-1906
Sethi Alok officer: Reg. S-K Executive Officer ONE FRANKLING PARKWAY SAN MATEO CA 94403
Plafker Jed A. officer: Executive Vice President ONE FRANKLIN PARKWAY SAN MATEO CA 94403
Shaneyfelt Gwen L officer: Chief Accounting Officer ONE FRANKLIN PARKWAY SAN MATEO CA 94403
Nicholls Matthew other: EVP and CFO ONE FRANKLIN PARKWAY SAN MATEO CA 94403
Byerwalter Mariann H director ONE BELVEDERE PL SUITE 300 MILL VALLEY CA 94941
Noto Anthony director C/O TWITTER, INC. 1355 MARKET ST STE 900 SAN FRANCISCO CA 94103
Waugh Seth H. director C/O FRANKLIN RESOURCES, INC. ONE FRANKLIN PARKWAY SAN MATEO CA 94403
Johnson Rupert H Jr director, 10 percent owner, officer: Vice Chairman C/O FRANKLIN RESOURCES INC ONE FRANKLIN PARKWAY SAN MATEO CA 94403
Johnson Gregory E director, officer: Chairman and CEO ONE FRANKLIN PARKWAY SAN MATEO CA 94403

Franklin Resources Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)