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Credit Acceptance PE Ratio

: 11.85 (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 (2021-10-19), Credit Acceptance's share price is $616.07. Credit Acceptance's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $51.99. Therefore, Credit Acceptance's PE Ratio for today is 11.85.


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

NAS:CACC' s PE Ratio Range Over the Past 10 Years
Min: 7.64   Med: 12.74   Max: 28.34
Current: 11.87

7.64
28.34

During the past 13 years, the highest PE Ratio of Credit Acceptance was 28.34. The lowest was 7.64. And the median was 12.74.


NAS:CACC's PE Ratio is ranked higher than
77% of the 47 Companies
in the Credit Services industry.

( Industry Median: 14.40 vs. NAS:CACC: 11.87 )

Credit Acceptance's Earnings per Share (Diluted) for the three months ended in Jun. 2021 was $17.18. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $51.99.

As of today (2021-10-19), Credit Acceptance's share price is $616.07. Credit Acceptance's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $51.99. Therefore, Credit Acceptance's PE Ratio without NRI for today is 11.85.

During the past 13 years, Credit Acceptance's highest PE Ratio without NRI was 28.34. The lowest was 7.64. And the median was 12.74.

Credit Acceptance's EPS without NRI for the three months ended in Jun. 2021 was $17.18. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $51.99.

During the past 12 months, Credit Acceptance's average EPS without NRI Growth Rate was 186.90% per year. During the past 3 years, the average EPS without NRI Growth Rate was -0.80% per year. During the past 5 years, the average EPS without NRI Growth Rate was 15.20% per year. During the past 10 years, the average EPS without NRI Growth Rate was 19.00% per year.

During the past 13 years, Credit Acceptance's highest 3-Year average EPS without NRI Growth Rate was 160.40% per year. The lowest was -60.60% per year. And the median was 24.65% per year.

Credit Acceptance's EPS (Basic) for the three months ended in Jun. 2021 was $17.19. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2021 was $52.08.


Credit Acceptance PE Ratio Historical Data

The historical data trend for Credit Acceptance'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.

Credit Acceptance Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.34 13.46 12.99 12.80 14.75

Credit Acceptance Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 23.12 14.76 14.75 8.96 8.73

Competitive Comparison

For the Credit Services subindustry, Credit Acceptance'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.

   

Credit Acceptance PE Ratio Distribution

For the Credit Services industry and Financial Services sector, Credit Acceptance's PE Ratio distribution charts can be found below:

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



Credit Acceptance 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.

Credit Acceptance's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=616.07/51.990
=11.85

Credit Acceptance's Share Price of today is $616.07.
Credit Acceptance's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $51.99.

* 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.


Credit Acceptance  (NAS:CACC) 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.


Credit Acceptance PE Ratio Related Terms

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


Credit Acceptance Business Description

Credit Acceptance logo
Industry
Financial Services » Credit Services NAICS : 522220 SIC : 6141
Traded in Other Exchanges
Address
25505 W. Twelve Mile Road, Southfield, MI, USA, 48034-8339
Credit Acceptance Corp is a consumer finance company that specializes in automobile loans. These loans are offered through a U.S. nationwide network of automobile dealers that benefit from sales of vehicles to consumers who could otherwise not obtain financing. The company also benefits from repeat and referral sales, and from sales to customers responding to advertisements for financing, but qualify for traditional financing. The company derives its revenue from finance charges, premiums earned on the reinsurance of vehicle service contracts, and other fees. Of these, financing charges, including servicing fees, are by far the largest source of revenue.
Executives
Roberts Brett A director, officer: Chief Executive Officer 25505 WEST TWELVE MILE ROAD SOUTHFIELD MI 48034
Flanagan Glenda J director 550 BOWIE STREET AUSTIN TX 78703
Foss Donald A other: FORMER 10% OWNER 29777 TELEGRAPH ROAD SUITE 2611 SOUTHFIELD MI 48034
Busk Douglas W officer: Sr. Vice President & Treasurer 25505 WEST TWELVE MILE ROAD SOUTH FIELD MI 48034
Pearce Charles A officer: Chief Legal Officer 25505 WEST TWELVE MILE ROAD SOUTH FIELD MI 48034
Ulatowski Daniel A. officer: Chief Sales Officer 25505 W 12 MILE ROAD SOUTHFIELD MI 48034
Smith Thomas W 10 percent owner, other: Member of Section 13(d) Group 2200 BUTTS ROAD SUITE 320 BOCA RATON FL 33431
Vassalluzzo Scott J director, 10 percent owner, other: Member of Section 13(d) Group 2200 BUTTS ROAD SUITE 320 BOCA RATON FL 33431
Prescott General Partners Llc 10 percent owner, other: Member of Section 13(d) Group 2200 BUTTS ROAD SUITE 320 BOCA RATON FL 33431
Watson Jill Foss 10 percent owner 29777 TELEGRAPH ROAD SUITE 2611 SOUTHFIELD MI 48034
Booth Kenneth officer: Chief Financial Officer 25505 WEST TWELVE MILE ROAD SOUTHFIELD MI 48034
Kotch Noah officer: Chief Information Officer 25505 W 12 MILE ROAD SOUTHFIELD MI 48034
Lum Jonathan officer: Chief Operating Officer 25505 W 12 MILE ROAD SOUTHFIELD MI 48034
Smith Arthur L officer: Chief Analytics Officer 25505 W 12 MILE ROAD SOUTHFIELD MI 48034
Soave John S. officer: Chief Information Officer 25505 W 12 MILE ROAD SOUTHFIELD MI 48034

Credit Acceptance Headlines

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