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National Bankshares PE Ratio

: 9.51 (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 (2022-08-14), National Bankshares's share price is $33.66. National Bankshares's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2022 was $3.54. Therefore, National Bankshares's PE Ratio for today is 9.51.

Good Sign:

National Bankshares Inc stock PE Ratio (=9.51) is close to 10-year low of 9.28


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

NKSH' s PE Ratio Range Over the Past 10 Years
Min: 9.28   Med: 13.52   Max: 24.67
Current: 9.51


During the past 13 years, the highest PE Ratio of National Bankshares was 24.67. The lowest was 9.28. And the median was 13.52.


NKSH's PE Ratio is ranked better than
52.91% of 1391 companies
in the Banks industry
Industry Median: 9.86 vs NKSH: 9.51

National Bankshares's Earnings per Share (Diluted) for the three months ended in Mar. 2022 was $0.81. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2022 was $3.54.

As of today (2022-08-14), National Bankshares's share price is $33.66. National Bankshares's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2022 was $3.54. Therefore, National Bankshares's PE Ratio without NRI for today is 9.51.

During the past 13 years, National Bankshares's highest PE Ratio without NRI was 24.67. The lowest was 9.28. And the median was 13.52.

National Bankshares's EPS without NRI for the three months ended in Mar. 2022 was $0.81. Its EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2022 was $3.54.

During the past 12 months, National Bankshares's average EPS without NRI Growth Rate was 32.30% per year. During the past 3 years, the average EPS without NRI Growth Rate was 12.20% per year. During the past 5 years, the average EPS without NRI Growth Rate was 8.50% per year. During the past 10 years, the average EPS without NRI Growth Rate was 1.00% per year.

During the past 13 years, National Bankshares's highest 3-Year average EPS without NRI Growth Rate was 30.60% per year. The lowest was -14.80% per year. And the median was 5.70% per year.

National Bankshares's EPS (Basic) for the three months ended in Mar. 2022 was $0.81. Its EPS (Basic) for the trailing twelve months (TTM) ended in Mar. 2022 was $3.54.


National Bankshares PE Ratio Historical Data

The historical data trend for National Bankshares'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.

National Bankshares 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 22.39 15.70 16.95 12.63 10.93

National Bankshares 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 12.11 11.38 10.93 11.10 At Loss

Competitive Comparison

For the Banks - Regional subindustry, National Bankshares'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.

   

National Bankshares PE Ratio Distribution

For the Banks industry and Financial Services sector, National Bankshares's PE Ratio distribution charts can be found below:

* The bar in red indicates where National Bankshares's PE Ratio falls into.



National Bankshares 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.

National Bankshares's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=33.66/3.540
=9.51

National Bankshares's Share Price of today is $33.66.
National Bankshares's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $3.54.

* 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.


National Bankshares  (NAS:NKSH) 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.


National Bankshares PE Ratio Related Terms

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


National Bankshares Business Description

National Bankshares logo
Traded in Other Exchanges
Address
101 Hubbard Street, Blacksburg, VA, USA, 24062-9002
National Bankshares Inc is a bank holding company of National Bank of Blacksburg, offering a range of financial products and services, including deposit accounts, commercial, consumer, and mortgage loans, credit cards, and trust services. The bank focuses on lending to small and mid-sized businesses and individuals. The types of loans it offers include commercial and agricultural, commercial real estate, construction for commercial and residential properties, residential real estate, home equity, and various consumer loan products. It also operates an insurance and brokerage subsidiary, National Bankshares Financial Services, Inc. The company earns its revenues from interest and fees on loans, non-interest income, and investments.
Executives
Sanders Bobby D. Ii officer: SVP/Chief Credit Officer 1735 TURNBERRY LANE RINER VA 24149
Jones Lora M. officer: SVP/Chief Financial Officer 301 NEIL STREET BLACKSBURG VA 24060
Melton Rebecca M officer: SVP/Chief Credit Officer 260 REVOLUTION CIRCLE CHRISTIANSBURG VA 24073
Smith Mark Atom officer: SVP/Chief Credit Officer 5426 DOE RUN ROAD ROANOKE VA 24018
Mylum Paul M. officer: SVP/Chief Lending Officer 8537 WHISTLING STRAIGHTS DRIVE RADFORD VA 24141
Webb Julian Lewis Jr director 700 CAVE STREET NARROWS VA 24124
Ramsey Lara E other: Corporate Secretary 7479 BLUFF VIEW DRIVE RADFORD VA 24141
Thompson James Carroll director PO BOX 298 TAZEWLL VA 24651
Dye Michael E director PO BOX 346 BLUEFIELD VA 24605
Fitzwater Norman V Iii director 113 MATEER CIRCLE BLACKSBURG VA 24060
Johnson Mildred R director 914 WILLARD DRIVE BLACKSBURG VA 24060
Dooley John Elliott director 2131 PLANK DRIVE BLACKSBURG VA 24060
Green Charles E Iii director 15519 LOOKOUT RIDGE BRISTOL VA 24202
Skeens David K. officer: Treasurer 2130 CHILDRESS ROAD CHRISTIANSBURG VA 24073
Buchanan J. Robert officer: Treasurer 2248 UPPER VALLEY ROAD TAZEWELL VA 24651

National Bankshares Headlines

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