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NVE PE Ratio

: 21.49 (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 (2022-01-26), NVE's share price is $61.45. NVE's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2021 was $2.86. Therefore, NVE's PE Ratio for today is 21.49.

Good Sign:

NVE Corp stock PE Ratio (=21.15) is close to 1-year low of 21.15


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

NAS:NVEC' s PE Ratio Range Over the Past 10 Years
Min: 15.14   Med: 23.7   Max: 43.78
Current: 21.48

15.14
43.78

During the past 13 years, the highest PE Ratio of NVE was 43.78. The lowest was 15.14. And the median was 23.70.


NAS:NVEC's PE Ratio is ranked higher than
54% of the 652 Companies
in the Semiconductors industry.

( Industry Median: 23.53 vs. NAS:NVEC: 21.48 )

NVE's Earnings per Share (Diluted) for the three months ended in Dec. 2021 was $0.72. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2021 was $2.86.

As of today (2022-01-26), NVE's share price is $61.45. NVE's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2021 was $2.86. Therefore, NVE's PE Ratio without NRI for today is 21.49.

During the past 13 years, NVE's highest PE Ratio without NRI was 43.78. The lowest was 15.14. And the median was 23.70.

NVE's EPS without NRI for the three months ended in Dec. 2021 was $0.72. Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2021 was $2.86.

During the past 12 months, NVE's average EPS without NRI Growth Rate was 16.30% per year. During the past 3 years, the average EPS without NRI Growth Rate was -5.50% per year. During the past 5 years, the average EPS without NRI Growth Rate was 0.50% per year. During the past 10 years, the average EPS without NRI Growth Rate was 1.20% per year.

During the past 13 years, NVE's highest 3-Year average EPS without NRI Growth Rate was 132.10% per year. The lowest was -81.30% per year. And the median was 5.40% per year.

NVE's EPS (Basic) for the three months ended in Dec. 2021 was $0.72. Its EPS (Basic) for the trailing twelve months (TTM) ended in Dec. 2021 was $2.86.


NVE PE Ratio Historical Data

The historical data trend for NVE'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.

NVE Annual Data
Trend Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 30.89 28.96 32.74 17.34 28.97

NVE Quarterly Data
Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21
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 22.84 28.97 27.84 21.68 23.88

Competitive Comparison

For the Semiconductors subindustry, NVE'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.

   

NVE PE Ratio Distribution

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

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



NVE 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.

NVE's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=61.45/2.860
=21.49

NVE's Share Price of today is $61.45.
NVE's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.86.

* 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.


NVE  (NAS:NVEC) 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.


NVE PE Ratio Related Terms

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


NVE Business Description

NVE logo
Industry
Technology » Semiconductors NAICS : 334413 SIC : 3674
Traded in Other Exchanges
Address
11409 Valley View Road, Eden Prarie, MN, USA, 55344
NVE Corp develops and sells devices that use spintronics, a nanotechnology that relies on electron spin. It manufactures high-performance spintronic products including sensors and couplers that are used to acquire and transmit data. The company's products include Digital sensors, Medical sensors, Rotation Sensors, GT Sensors, Angle Sensors, Analog sensors, MSOP Isolators, Passive-In Transceivers, and others. Geographically, the company generates a majority of its revenue from the United States.
Executives
Kramp Richard W director 174 STONEBRIDGE ROAD ST. PAUL MN 55118
Glarner Terrence director 160 MONTROSE PLACE ST. PAUL MN 55104
Hollister Patricia M director 3455 LYMAN BLVD CHASKA MN 55318-3052
Maharaj Gary R director 9924 WEST 74TH STREET EDEN PRAIRIE MN 55344
Reynders Curt A officer: Chief Financial Officer 11409 VALLEY VIEW ROAD EDEN PRAIRIE MN 55344
Hartman James D director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: HARTMAN JAMES D a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Irish Robert director 17910-39TH PLACE NORTH PLYMOUTH MN 55446
Baker Daniel A director, officer: President & CEO 11409 VALLEY VIEW ROAD EDEN PRAIRIE MN 55344-3617
Dr Daughton James director, officer: Chief Technology Officer PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: DR DAUGHTON JAMES a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
George Richard officer: Chief Financial Officer PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: GEORGE RICHARD a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Kaszubinski Jeffrey K director 3901 NO. FIRST STREET SAN JOSE CA 95134
Cypress Semiconductor Corp /de/ other: Warrant Holder 198 CHAMPION COURT SAN JOSE CA 95134
Wells Fargo & Company/mn 10 percent owner 420 MONTGOMERY STREET SAN FRANCISCO CA 94163
Itasca Partners 10 percent owner 3600 IDS CENTER 80 SOUTH EIGHT ST MINNEAPOLIS MN 55402
Norwest Equity Partners Iv Lp /mn/ 10 percent owner 3600 IDS CENTER 80 SOUTH EIGHTH STREET MINNEAPOLIS MN 554026

NVE Headlines

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