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Horizon Technology Finance PE Ratio

: 10.22 (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 (2022-01-24), Horizon Technology Finance's share price is $14.41. Horizon Technology Finance's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $1.41. Therefore, Horizon Technology Finance's PE Ratio for today is 10.22.


The historical rank and industry rank for Horizon Technology Finance's PE Ratio or its related term are showing as below:

NAS:HRZN' s PE Ratio Range Over the Past 10 Years
Min: 6.21   Med: 12.59   Max: 53.26
Current: 10.22

6.21
53.26

During the past 12 years, the highest PE Ratio of Horizon Technology Finance was 53.26. The lowest was 6.21. And the median was 12.59.


NAS:HRZN's PE Ratio is ranked lower than
66% of the 1462 Companies
in the Asset Management industry.

( Industry Median: 6.26 vs. NAS:HRZN: 10.22 )

Horizon Technology Finance's Earnings per Share (Diluted) for the three months ended in Sep. 2021 was $0.63. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $1.41.

As of today (2022-01-24), Horizon Technology Finance's share price is $14.41. Horizon Technology Finance's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $1.41. Therefore, Horizon Technology Finance's PE Ratio without NRI for today is 10.22.

During the past 12 years, Horizon Technology Finance's highest PE Ratio without NRI was 53.26. The lowest was 6.21. And the median was 12.59.

Horizon Technology Finance's EPS without NRI for the three months ended in Sep. 2021 was $0.63. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $1.41.

During the past 12 months, Horizon Technology Finance's average EPS without NRI Growth Rate was 104.30% per year. During the past 3 years, the average EPS without NRI Growth Rate was -24.30% per year.

During the past 12 years, Horizon Technology Finance's highest 3-Year average EPS without NRI Growth Rate was 31.10% per year. The lowest was -27.50% per year. And the median was -8.70% per year.

Horizon Technology Finance's EPS (Basic) for the three months ended in Sep. 2021 was $0.63. Its EPS (Basic) for the trailing twelve months (TTM) ended in Sep. 2021 was $1.41.


Horizon Technology Finance PE Ratio Historical Data

The historical data trend for Horizon Technology Finance'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.

Horizon Technology Finance 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 At Loss 13.52 9.96 8.92 36.78

Horizon Technology Finance 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 17.80 36.78 19.97 29.27 11.53

Competitive Comparison

For the Asset Management subindustry, Horizon Technology Finance'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.

   

Horizon Technology Finance PE Ratio Distribution

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

* The bar in red indicates where Horizon Technology Finance's PE Ratio falls into.



Horizon Technology Finance 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.

Horizon Technology Finance's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=14.41/1.410
=10.22

Horizon Technology Finance's Share Price of today is $14.41.
Horizon Technology Finance'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 $1.41.

* 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.


Horizon Technology Finance  (NAS:HRZN) 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.


Horizon Technology Finance PE Ratio Related Terms

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


Horizon Technology Finance Business Description

Horizon Technology Finance logo
Industry
Financial Services » Asset Management NAICS : 522298 SIC : 6799
Traded in Other Exchanges
N/A
Address
312 Farmington Avenue, Farmington, CT, USA, 06032
Horizon Technology Finance Corp is a specialty finance company. Its investment objective is to maximize its investment portfolio's total return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. It lends to and invests in development-stage companies in the technology, life science, healthcare information and services and sustainability industries.
Executives
Pomeroy Robert D. Jr. director, officer: Chief Executive Officer 312 FARMINGTON AVENUE FARMINGTON CT 06032
Michaud Gerald A. director, officer: President 312 FARMINGTON AVENUE FARMINGTON CT 06032
Trolio Daniel R. officer: Senior VP and CFO 312 FARMINGTON AVENUE FARMINGTON CT 06032
Savage Joseph J director WEBSTER FINANCIAL CORP 145 BANK ST WATERBURY CT 06702
Sarsynski Elaine A director 312 FARMINGTON AVE FARMINGTON CT 06032
Earle Diane officer: Chief Credit Officer 312 FARMINGTON AVENUE FARMINGTON CT 06032
Mathieu Christopher M. officer: SVP, CFO and Treasurer 312 FARMINGTON AVENUE FARMINGTON CT 06032
Mahoney Edmund V. director 312 FARMINGTON AVENUE FARMINGTON CT 06032
Woodward Christopher B. director 312 FARMINGTON AVENUE FARMINGTON CT 06032
Anholt Investments Ltd. 10 percent owner BELVEDERE BUILDING 69 PITTS BAY ROAD HAMILTON HM 08 D0 00000
Compass Horizon Partners, Lp 10 percent owner BELVEDERE BUILDING 4TH FLOOR 69 PITTS BAY ROAD HAMILTON HM 08 D0 00000
Path Spirit Ltd 10 percent owner 10 NORWICH STREET LONDON X0 EC4A 1BD
Navco Management, Ltd. 10 percent owner TEEKAY HOUSE BAYSIDE EXECUTIVE PARK P.O. BOX AP59213 NASSAU C5 00000
Swanson David P. director 312 FARMINGTON AVENUE FARMINGTON CT 06032
Bottiglieri James director 2187 ATLANTIC ST STAMFORD CT 06902

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