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Hennessy Advisors PE Ratio

: 10.28 (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 (2022-01-23), Hennessy Advisors's share price is $11.00. Hennessy Advisors's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $1.07. Therefore, Hennessy Advisors's PE Ratio for today is 10.28.


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

NAS:HNNA' s PE Ratio Range Over the Past 10 Years
Min: 4.38   Med: 11.09   Max: 28.72
Current: 10.28

4.38
28.72

During the past 13 years, the highest PE Ratio of Hennessy Advisors was 28.72. The lowest was 4.38. And the median was 11.09.


NAS:HNNA's PE Ratio is ranked lower than
66% of the 1463 Companies
in the Asset Management industry.

( Industry Median: 6.26 vs. NAS:HNNA: 10.28 )

Hennessy Advisors's Earnings per Share (Diluted) for the three months ended in Sep. 2021 was $0.27. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $1.07.

As of today (2022-01-23), Hennessy Advisors's share price is $11.00. Hennessy Advisors's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $1.07. Therefore, Hennessy Advisors's PE Ratio without NRI for today is 10.28.

During the past 13 years, Hennessy Advisors's highest PE Ratio without NRI was 28.72. The lowest was 4.38. And the median was 11.09.

Hennessy Advisors's EPS without NRI for the three months ended in Sep. 2021 was $0.27. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $1.07.

During the past 12 months, Hennessy Advisors's average EPS without NRI Growth Rate was 0.90% per year. During the past 3 years, the average EPS without NRI Growth Rate was -25.70% per year. During the past 5 years, the average EPS without NRI Growth Rate was -13.70% per year. During the past 10 years, the average EPS without NRI Growth Rate was 25.00% per year.

During the past 13 years, Hennessy Advisors's highest 3-Year average EPS without NRI Growth Rate was 124.00% per year. The lowest was -38.80% per year. And the median was 28.70% per year.

Hennessy Advisors's EPS (Basic) for the three months ended in Sep. 2021 was $0.27. Its EPS (Basic) for the trailing twelve months (TTM) ended in Sep. 2021 was $1.07.


Hennessy Advisors PE Ratio Historical Data

The historical data trend for Hennessy Advisors'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.

Hennessy Advisors 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 8.01 5.31 7.61 7.82 8.99

Hennessy Advisors Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 7.82 8.96 9.16 9.35 8.99

Competitive Comparison

For the Asset Management subindustry, Hennessy Advisors'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.

   

Hennessy Advisors PE Ratio Distribution

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

* The bar in red indicates where Hennessy Advisors's PE Ratio falls into.



Hennessy Advisors 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.

Hennessy Advisors's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=11.00/1.070
=10.28

Hennessy Advisors's Share Price of today is $11.00.
Hennessy Advisors's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.07.

* 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.


Hennessy Advisors  (NAS:HNNA) 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.


Hennessy Advisors PE Ratio Related Terms

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


Hennessy Advisors Business Description

Hennessy Advisors logo
Industry
Financial Services » Asset Management NAICS : 523930 SIC : 6282
Traded in Other Exchanges
N/A
Address
7250 Redwood Boulevard, Suite 200, Novato, CA, USA, 94945
Hennessy Advisors Inc is an investment management company, engaged in the managing and marketing of open-end mutual funds branded as the Hennessy Funds. It offers domestic equity, sectors, and specialty, balanced and fixed income products. It provides investment advisory services and shareholder services to the Hennessy Funds. Its investment advisory services include managing the composition of each fund's portfolio, including the purchase, retention, and disposition of portfolio securities in accordance with the Fund's investment objectives, policies, and restrictions; conducting investment research, and monitoring compliance with each fund's investment restrictions and applicable laws and regulations.
Executives
Steadman Daniel B director, officer: Executive Vice President 7250 REDWOOD BLVD. SUITE 200 NOVATO CA 94945
Nilsen Teresa M director, officer: President, COO and Secretary 7250 REDWOOD BLVD. SUITE 200 NOVATO CA 94945
Hennessy Neil J director, 10 percent owner, officer: CEO 7250 REDWOOD BLVD. SUITE 200 NOVATO CA 94945
Offenbach Rodger director 7250 REDWOOD BLVD SUITE 200 NOVATO CA 94945
Libarle Daniel G director 7250 REDWOOD BLVD SUITE 200 NOVATO CA 94945
Hansel Henry director 7250 REDWOOD BLVD SUITE 200 NOVATO CA 94945
Seavey Thomas L director 7250 REDWOOD BLVD. SUITE 200 NOVATO CA 94945
Hennessy Brian A director 7250 REDWOOD BLVD SUITE 200 NOVATO CA 94945
Pomilia Susan Weber director 7250 REDWOOD BLVD SUITE 200 NOVATO CA 94945
Fahy Kathryn officer: SVP and CFO 7250 REDWOOD BOULEVARD, SUITE 200 NOVATO CA 94945
Bennett Charles W director 700 IRWIN STREET SAN RAFAEL CA 94901-3300
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