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Activision Blizzard PE Ratio

: 31.39 (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 (2022-09-28), Activision Blizzard's share price is $75.335. Activision Blizzard's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2022 was $2.40. Therefore, Activision Blizzard's PE Ratio for today is 31.39.


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

ATVI' s PE Ratio Range Over the Past 10 Years
Min: 10.56   Med: 25.06   Max: 201.44
Current: 31.29


During the past 13 years, the highest PE Ratio of Activision Blizzard was 201.44. The lowest was 10.56. And the median was 25.06.


ATVI's PE Ratio is ranked worse than
70.07% of 304 companies
in the Interactive Media industry
Industry Median: 17.41 vs ATVI: 31.29

Activision Blizzard's Earnings per Share (Diluted) for the three months ended in Jun. 2022 was $0.36. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2022 was $2.40.

As of today (2022-09-28), Activision Blizzard's share price is $75.335. Activision Blizzard's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2022 was $2.40. Therefore, Activision Blizzard's PE Ratio without NRI for today is 31.39.

During the past 13 years, Activision Blizzard's highest PE Ratio without NRI was 201.44. The lowest was 10.56. And the median was 25.06.

Activision Blizzard's EPS without NRI for the three months ended in Jun. 2022 was $0.36. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2022 was $2.40.

During the past 12 months, Activision Blizzard's average EPS without NRI Growth Rate was -28.10% per year. During the past 3 years, the average EPS without NRI Growth Rate was 12.70% per year. During the past 5 years, the average EPS without NRI Growth Rate was 36.60% per year. During the past 10 years, the average EPS without NRI Growth Rate was 12.70% per year.

During the past 13 years, Activision Blizzard's highest 3-Year average EPS without NRI Growth Rate was 123.90% per year. The lowest was -31.70% per year. And the median was 18.70% per year.

Activision Blizzard's EPS (Basic) for the three months ended in Jun. 2022 was $0.36. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2022 was $2.41.


Activision Blizzard PE Ratio Historical Data

The historical data trend for Activision Blizzard'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.

Activision Blizzard Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 175.89 19.40 30.47 32.93 19.34

Activision Blizzard Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 28.57 22.90 19.34 25.35 32.44

Competitive Comparison

For the Electronic Gaming & Multimedia subindustry, Activision Blizzard'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.

   

Activision Blizzard PE Ratio Distribution

For the Interactive Media industry and Communication Services sector, Activision Blizzard's PE Ratio distribution charts can be found below:

* The bar in red indicates where Activision Blizzard's PE Ratio falls into.



Activision Blizzard 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.

Activision Blizzard's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=75.335/2.400
=31.39

Activision Blizzard's Share Price of today is $75.335.
Activision Blizzard's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.40.

* 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.


Activision Blizzard  (NAS:ATVI) 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.


Activision Blizzard PE Ratio Related Terms

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


Activision Blizzard Business Description

Activision Blizzard logo
Address
2701 Olympic Boulevard, Building B, Santa Monica, CA, USA, 90404
Activision Blizzard was formed in 2008 by the merger of Activision, one of the largest console video game publishers, and Blizzard, one of largest PC video game publishers. The combined firm remains one of the world's largest video game publishers. Activision's impressive franchise portfolio includes World of Warcraft, which boasts more than $8 billion of lifetime sales, and Call of Duty, which has sold over 175 million copies across 14 titles over 12 years.
Executives
Meservey Lulu Cheng director 2701 OLYMPIC BOULEVARD BUILDING B SANTA MONICA CA 90404
Bulatao Brian officer: Chief Administrative Officer C/O ACTIVISION BLIZZARD, INC. 3100 OCEAN PARK BOULEVARD SANTA MONICA CA 90405
Dixton Grant Michael officer: Chief Legal Officer C/O ACTIVISION BLIZZARD, INC. 3100 OCEAN PARK BOULEVARD SANTA MONICA CA 90405
Zerza Armin officer: Chief Financial Officer C/O ACTIVISION BLIZZARD, INC 3100 OCEAN PARK BOULEVARD SANTA MONICA CA 90405
Macartney Claudine officer: Chief People Officer AMERICAN INTERNATIONAL GROUP, INC. 175 WATER ST. NEW YORK NY 10038
Ostroff Dawn director 3100 OCEAN PARK BOULEVARD SANTA MONICA CA 91405
Yang Jesse officer: Chief Accounting Officer C/O ACTIVISION BLIZZARD, INC. 3100 OCEAN PARK BOULEVARD SANTA MONICA CA 90405
Alegre Daniel officer: President and COO 9800 59TH AVENUE NORTH MINNEAPOLIS MN 55317
Wereb Stephen G officer: Principal Accounting Officer C/O ACTIVISION, INC. 3100 OCEAN PARK BOULEVARD SANTA MONICA CA 90405
Walther Christopher B officer: Chief Legal Officer C/O ACTIVISION BLIZZARD 3100 OCEAN PARK BOULEVARD SANTA MONICA CA 90405
Bowers Reveta F director C/O ACTIVISION BLIZZARD, INC. 3100 OCEAN PARK BOULEVARD SANTA MONICA CA 90405
Johnson Collister officer: President and COO C/O ACTIVISION BLIZZARD, INC. 3100 OCEAN PARK BOULEVARD SANTA MONICA CA 90405
Neumann Spencer Adam officer: Chief Financial Officer SIERRA INCOME CORPORATION 375 PARK AVE., SUITE 3304 NEW YORK NY 10152
Asac Ii Lp 10 percent owner C/O CHADWICK & COMPANY 225 HIGHWAY 35, SUITE 102C RED BANK NJ 07701
Asac Ii Llc 10 percent owner C/O CHADWICK & COMPANY 225 HIGHWAY 35, SUITE 102C RED BANK NJ 07701

Activision Blizzard Headlines

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