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Covance (FRA:CVD) PE Ratio (TTM) : 40.29 (As of Apr. 25, 2024)


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What is Covance PE Ratio (TTM)?

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). As of today (2024-04-25), Covance's share price is €94.00. Covance's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2014 was €2.33. Therefore, Covance's PE Ratio (TTM) for today is 40.29.


The historical rank and industry rank for Covance's PE Ratio (TTM) or its related term are showing as below:

FRA:CVD' s PE Ratio (TTM) Range Over the Past 10 Years
Min: At Loss   Med: At Loss   Max: 40.34
Current: 40.34


During the past 13 years, the highest PE Ratio (TTM) of Covance was 40.34. The lowest was 0.00. And the median was 0.00.


FRA:CVD's PE Ratio (TTM) is not ranked
in the Medical Diagnostics & Research industry.
Industry Median: 31.24 vs FRA:CVD: 40.34

Covance's Earnings per Share (Diluted) for the three months ended in Sep. 2014 was €0.90. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2014 was €2.33.

As of today (2024-04-25), Covance's share price is €94.00. Covance's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2014 was €2.33. Therefore, Covance's PE Ratio without NRI for today is 40.29.

During the past 13 years, Covance's highest PE Ratio without NRI was 40.34. The lowest was 0.00. And the median was 0.00.

Covance's EPS without NRI for the three months ended in Sep. 2014 was €0.90. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2014 was €2.33.

Covance's EPS (Basic) for the three months ended in Sep. 2014 was €0.93. Its EPS (Basic) for the trailing twelve months (TTM) ended in Sep. 2014 was €2.42.


Covance PE Ratio (TTM) Historical Data

The historical data trend for Covance's PE Ratio (TTM) 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.

Covance PE Ratio (TTM) Chart

Covance Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
PE Ratio (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.97 48.82 21.11 34.47 27.87

Covance Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
PE Ratio (TTM) Get a 7-Day Free Trial 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 29.05 27.87 32.67 31.12 25.14

Competitive Comparison of Covance's PE Ratio (TTM)

For the Diagnostics & Research subindustry, Covance'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.


Covance's PE Ratio (TTM) Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Covance's PE Ratio (TTM) distribution charts can be found below:

* The bar in red indicates where Covance's PE Ratio (TTM) falls into.



Covance 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.

Covance's PE Ratio (TTM) for today is calculated as

PE Ratio (TTM)=Share Price/Earnings per Share (Diluted) (TTM)
=94.00/2.333
=40.29

Covance's Share Price of today is €94.00.
Covance's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was €2.33.

* 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:

PE Ratio (TTM)=Market Cap /Net Income

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.


Covance  (FRA:CVD) 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.

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 (TTM) 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 (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).


Covance PE Ratio (TTM) Related Terms

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Covance (FRA:CVD) Business Description

Traded in Other Exchanges
N/A
Address
Covance, Inc is a Delaware Corporation, founded in 1987. The Company is a drug development services company providing early-stage and late-stage product development services mainly to the pharmaceutical, biotechnology and medical device industries. It also provides laboratory testing services to the chemical, agrochemical and food industries. Its two reportable segments are early development services, which include discovery support services, preclinical services and clinical pharmacology services; and late-stage development services, which include central laboratory, Phase II-IV clinical development, and market access services. The Company's preclinical services include toxicology services, pharmaceutical chemistry and related services. The Company's preclinical area has been a source of innovation by introducing new technologies for client access to data such as StudyTracker, electronic animal identification, multimedia study reports and animal and test tube measures of induced cell proliferation or reproduction. The Company's preclinical toxicology services include in vivo toxicology studies, which are studies of the effects of drugs in animals, genetic toxicology studies, which include studies of the effects of drugs on chromosomes, as well as on genetically modified mice and other specialized toxicology services. In its pharmaceutical chemistry services, it determines the metabolic profile and bioavailability of drug candidates. It also provides laboratory testing services to the chemical, agricultural chemical and food industries. The Company offers services to agricultural chemical manufacturers to determine the potential risk to humans, animals and the environment from plant protection products such as pesticides. In its nutritional chemistry services, the Company offers a range of services to the food, nutriceutical and animal feed industries, including nutritional analysis and equivalency, nutritional content fact labels, microbiological and chemical contaminant safety analysis, pesticide screening and stability testing. It provides custom polyclonal and monoclonal antibody services for research purposes and purpose-bred animals for biomedical research. The Company provides optimization and translational services including custom immunology and monoclonal antibody services, metabolism studies and pharmacokinetic screening as well as non-GLP toxicology, in vivo pharmacology, imaging services and biomarker services. The Company's bioanalytical testing services helps determine the appropriate dose and frequency of drug application from late discovery evaluation through Phase III clinical testing on a full-scale, globally integrated basis. The Company provides clinical pharmacology services, including first-in-human trials, of new pharmaceuticals at its seven clinics located throughout the United States and its one clinic in Leeds, United Kingdom. The Company offers reimbursement and healthcare economics consulting services

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