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Jiangsu Innovative Ecological New Materials (HKSE:02116) 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).
Jiangsu Innovative Ecological New Materials PE Ratio (TTM) Related Terms
Jiangsu Innovative Ecological New Materials 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.
Jiangsu Innovative Ecological New Materials PE Ratio (TTM) Chart
Jiangsu Innovative Ecological New Materials Annual Data
HKSE:02116 vs LIN, SHW, ECL: PE Ratio (TTM) Comparison
For the Specialty Chemicals subindustry, Jiangsu Innovative Ecological New Materials'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.
Jiangsu Innovative Ecological New Materials PE Ratio (TTM) vs Chemicals Industry
Jiangsu Innovative Ecological New Materials 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.
Jiangsu Innovative Ecological New Materials's Share Price of today is HK$0.71.
For company reported semi-annually, Jiangsu Innovative Ecological New Materials'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 HK$0.04.
* 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.
Jiangsu Innovative Ecological New Materials (HKSE:02116) has a PE Ratio (TTM) of 20.29 as of Sep. 01, 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 Jiangsu Innovative Ecological New Materials and its competitors. This is 153% above median its historical median of 8.02. Over the past decade, Jiangsu Innovative Ecological New Materials' PE Ratio (TTM) has ranged from 4.68 to 21.67. According to the industry distribution chart, Jiangsu Innovative Ecological New Materials ranks #566 out of 1208 companies in the Chemicals industry, placing it in the top 46.9%.
Is Jiangsu Innovative Ecological New Materials' PE Ratio (TTM) too high?
Jiangsu Innovative Ecological New Materials' current PE Ratio (TTM) of 20.29 is 153% above median its 10-year median of 8.02. Over the past 10 years, this metric has ranged from a low of 4.68 to a high of 21.67. The Chemicals industry median PE Ratio (TTM) is 22.63. Jiangsu Innovative Ecological New Materials' value of 20.29 is 10.3% below this industry median. Based on the distribution chart, Jiangsu Innovative Ecological New Materials ranks #566 out of 1208 companies in the Chemicals industry, which is above the industry midpoint. Overall, Jiangsu Innovative Ecological New Materials has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jiangsu Innovative Ecological New Materials' PE Ratio (TTM) compare to LIN and SHW?
According to the Chemicals industry distribution chart, Jiangsu Innovative Ecological New Materials ranks #566 out of 1208 companies for PE Ratio (TTM). This puts Jiangsu Innovative Ecological New Materials in the upper half of its industry. The industry median PE Ratio (TTM) is 22.63. Jiangsu Innovative Ecological New Materials' value of 20.29 is 10.3% below this benchmark. Historically, Jiangsu Innovative Ecological New Materials' own PE Ratio (TTM) has ranged from 4.68 to 21.67 over the past decade. While the company's 10-year median is 8.02 vs. the industry median of 22.63, Jiangsu Innovative Ecological New Materials has consistently been below 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 a Chemicals company?
The median PE Ratio (TTM) among Chemicals companies is 22.63, based on 1,208 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. Jiangsu Innovative Ecological New Materials's current PE Ratio (TTM) of 20.29 is 10.3% below 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 Jiangsu Innovative Ecological New Materials and its competitors. For the Chemicals industry, the median PE Ratio (TTM) is 22.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangsu Innovative Ecological New Materials's current PE Ratio (TTM) is 20.29, which is 153% above median its own 10-year median of 8.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangsu Innovative Ecological New Materials stock overvalued right now?
Based on GuruFocus' analysis, Jiangsu Innovative Ecological New Materials (HKSE:02116) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.43, compared to a current price of HK$0.71 — trading 65.1% above its estimated fair value. The current PE Ratio (TTM) is 20.29, which is 153% above median its 10-year median of 8.02 and 10.3% below the Chemicals industry median of 22.63. Jiangsu Innovative Ecological New Materials' overall GF Score™ is 63/100 with 7 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 Jiangsu Innovative Ecological New Materials (HKSE:02116), the current PE Ratio (TTM) is 20.29 as of Sep. 01, 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 Jiangsu Innovative Ecological New Materials (HKSE:02116) Overvalued in 2026?
Based on GuruFocus' analysis, Jiangsu Innovative Ecological New Materials stock appears to be overvalued.
The current stock price of HK$0.71 is trading 65.1% above its estimated GF Value™ of HK$0.43.
GuruFocus considers Jiangsu Innovative Ecological New Materials to be Significantly Overvalued.
Key valuation signals for HKSE:02116:
PE Ratio (TTM): 20.29 (153% above median its 10-year median of 8.02)
GF Value™: HK$0.43 vs. price of HK$0.71 (65.1% above fair value)
Industry Position: 10.3% below the Chemicals median (#566 of 1208)
No single metric tells the full story. See the HKSE:02116 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jiangsu Innovative Ecological New Materials Ltd develops, manufactures, and markets oil refining agents. The firm produces refining additives, oil additives, and other products. It offers and generates revenue from oil refining agents and fuel additives with desulfurizing agents, lubricity improvers, and metal passivation. The majority of the firm's revenue is generated from the sales of oil refining agents from Mainland China. The company operates in a single segment, which is the sale of oil refining agents and fuel additives.
63GF Score
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