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Micron Technology PE Ratio

: 7.00 (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 (2022-08-10), Micron Technology's share price is $61.40. Micron Technology's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in May. 2022 was $8.77. Therefore, Micron Technology's PE Ratio for today is 7.00.

Good Sign:

Micron Technology Inc stock PE Ratio (=6.74) is close to 3-year low of 6.12


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

MU' s PE Ratio Range Over the Past 10 Years
Min: 2.5   Med: 11.1   Max: 51.61
Current: 7.01


During the past 13 years, the highest PE Ratio of Micron Technology was 51.61. The lowest was 2.50. And the median was 11.10.


MU's PE Ratio is ranked better than
88.13% of 699 companies
in the Semiconductors industry
Industry Median: 17.84 vs MU: 7.01

Micron Technology's Earnings per Share (Diluted) for the three months ended in May. 2022 was $2.34. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in May. 2022 was $8.77.

As of today (2022-08-10), Micron Technology's share price is $61.40. Micron Technology's EPS without NRI for the trailing twelve months (TTM) ended in May. 2022 was $8.77. Therefore, Micron Technology's PE Ratio without NRI for today is 7.00.

During the past 13 years, Micron Technology's highest PE Ratio without NRI was 51.61. The lowest was 2.50. And the median was 11.10.

Micron Technology's EPS without NRI for the three months ended in May. 2022 was $2.34. Its EPS without NRI for the trailing twelve months (TTM) ended in May. 2022 was $8.77.

During the past 12 months, Micron Technology's average EPS without NRI Growth Rate was 141.60% per year. During the past 3 years, the average EPS without NRI Growth Rate was -23.60% per year.

During the past 13 years, Micron Technology's highest 3-Year average EPS without NRI Growth Rate was 591.00% per year. The lowest was -162.10% per year. And the median was 20.20% per year.

Micron Technology's EPS (Basic) for the three months ended in May. 2022 was $2.36. Its EPS (Basic) for the trailing twelve months (TTM) ended in May. 2022 was $8.86.


Micron Technology PE Ratio Historical Data

The historical data trend for Micron Technology'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.

Micron Technology Annual Data
Trend Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.25 4.56 8.22 19.20 14.34

Micron Technology Quarterly Data
Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
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 23.18 14.34 12.96 11.18 8.42

Competitive Comparison

For the Semiconductors subindustry, Micron Technology'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.

   

Micron Technology PE Ratio Distribution

For the Semiconductors industry and Technology sector, Micron Technology's PE Ratio distribution charts can be found below:

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



Micron Technology 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.

Micron Technology's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=61.40/8.770
=7.00

Micron Technology's Share Price of today is $61.40.
Micron Technology's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in May. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $8.77.

* 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.


Micron Technology  (NAS:MU) 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.


Micron Technology PE Ratio Related Terms

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


Micron Technology Business Description

Micron Technology logo
Address
8000 South Federal Way, Post Office Box 6, Boise, ID, USA, 83716-9632
Micron historically focused on designing and manufacturing DRAM for PCs. The firm then expanded into the NAND flash memory market. It increased its DRAM scale with the purchase of Elpida (completed in mid-2013) and Inotera (completed in December 2016). The firm's DRAM and NAND products tailored to PCs, data centers, smartphones, game consoles, automotives, and other computing devices.
Executives
Murphy Mark J. officer: EVP & Chief Financial Officer DELPHI AUTOMOTIVE PLC 5725 DELPHI DRIVE TROY MI 48098
Beard Robert P officer: SVP, General Counsel&Secretary 8000 S. FEDERAL WAY BOISE ID 83716
Haynesworth Linnie M director 214 N TRYON STREET CHARLOTTE NC 28202
Allen Scott R. officer: CVP, Chief Accounting Officer 11690 N.W. 105TH STREET MIAMI FL 33178
Dugle Lynn A director 4803 STONECROFT BOULEVARD CHANTILLY VA 20151
Marosvari Paul officer: VP, Chief Accounting Officer 8000 S. FEDERAL WAY BOISE ID 83716
Wright Mary Ann director 250 STEPHENSON HIGHWAY TROY MI 48083
Gomo Steven J director 495 E. JAVA DRIVE SUNNYVALE CA 94089
Mccarthy Mary Pat director 2704 WEST 112TH STREET LEAWOOD KS 66211
Bokan Michael W officer: SVP, WORLDWIDE SALES 8000 S FEDERAL WAY MS 1-557 BOISE ID 83716
Zinsner David officer: SVP & Chief Financial Officer 1001 MURPHY RANCH ROAD MILPITAS CA 95035
Bhatia Manish H officer: EVP, Global Operations C/O WESTERN DIGITAL CORPORATION 5601 GREAT OAKS PARKWAY SAN JOSE CA 95119
Sadana Sumit officer: EVP & Chief Business Officer 47544 AVALON HEIGHTS TERRACE FREMONT CA 94539
Mehrotra Sanjay officer: President & CEO C/O WESTERN DIGITAL CORPORATION 3355 MICHELSON DRIVE, SUITE 100 IRVINE CA 92612
Maddock Ernest E officer: CFO & VP, Finance LAM RESEARCH 4650 CUSHING PARKWAY FREMONT CA 94538

Micron Technology Headlines

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