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Cardinal Health PE Ratio

: 12.46 (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 (2021-12-08), Cardinal Health's share price is $48.205. Cardinal Health's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $3.87. Therefore, Cardinal Health's PE Ratio for today is 12.46.


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

NYSE:CAH' s PE Ratio Range Over the Past 10 Years
Min: 9.49   Med: 18.15   Max: 530.5
Current: 12.45

9.49
530.5

During the past 13 years, the highest PE Ratio of Cardinal Health was 530.50. The lowest was 9.49. And the median was 18.15.


NYSE:CAH's PE Ratio is ranked higher than
68% of the 62 Companies
in the Medical Distribution industry.

( Industry Median: 16.26 vs. NYSE:CAH: 12.45 )

Cardinal Health's Earnings per Share (Diluted) for the three months ended in Sep. 2021 was $0.94. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $3.87.

As of today (2021-12-08), Cardinal Health's share price is $48.205. Cardinal Health's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $3.87. Therefore, Cardinal Health's PE Ratio without NRI for today is 12.46.

During the past 13 years, Cardinal Health's highest PE Ratio without NRI was 530.50. The lowest was 9.49. And the median was 18.15.

Cardinal Health's EPS without NRI for the three months ended in Sep. 2021 was $0.94. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $3.87.

During the past 12 months, Cardinal Health's average EPS without NRI Growth Rate was 16.90% per year. During the past 3 years, the average EPS without NRI Growth Rate was 36.90% per year.

During the past 13 years, Cardinal Health's highest 3-Year average EPS without NRI Growth Rate was 64.50% per year. The lowest was -39.20% per year. And the median was 9.40% per year.

Cardinal Health's EPS (Basic) for the three months ended in Sep. 2021 was $0.94. Its EPS (Basic) for the trailing twelve months (TTM) ended in Sep. 2021 was $3.89.


Cardinal Health PE Ratio Historical Data

The historical data trend for Cardinal Health'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.

Cardinal Health Annual Data
Trend Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.33 60.28 10.40 At Loss 27.45

Cardinal Health 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 14.18 11.42 15.58 27.45 12.78

Competitive Comparison

For the Medical Distribution subindustry, Cardinal Health'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.

   

Cardinal Health PE Ratio Distribution

For the Medical Distribution industry and Healthcare sector, Cardinal Health's PE Ratio distribution charts can be found below:

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



Cardinal Health 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.

Cardinal Health's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=48.205/3.870
=12.46

Cardinal Health's Share Price of today is $48.205.
Cardinal Health'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 $3.87.

* 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.


Cardinal Health  (NYSE:CAH) 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.


Cardinal Health PE Ratio Related Terms

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


Cardinal Health Business Description

Cardinal Health logo
Industry
Healthcare » Medical Distribution NAICS : 424210 SIC : 5122
Address
7000 Cardinal Place, Dublin, OH, USA, 43017
Cardinal Health is the third- largest global logistics provider engaged in wholesale pharmaceutical and medical products. Similar to its closest two peers, the company has evolved over time and has become entrenched in the sourcing and distribution of brand-name and generic pharmaceuticals and related services to hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, and physician offices. Through acquisitions, Cardinal Health has the ability to manufacture commodity products and certain medical devices.
Executives
Losh J Michael director H.B. FULLER COMPANY P.O. BOX 64683 ST. PAUL MN 55164-0683
Scarborough Dean A director 150 N. ORANGE GROVE BLVD PASADENA CA 91103
Snow Ola M officer: Chief Human Resources Officer 7000 CARDINAL PLACE DUBLIN OH 43017
Edison Sheri H. director 1069 STATE ROUTE 46 EAST BATESVILLE IN 47006
English Patricia M officer: Chief Accounting Officer 7000 CARDINAL PLACE DUBLIN OH 43017
Mason Stephen M officer: CEO, Medical Segment 7000 CARDINAL PLACE DUBLIN OH 43017
Mayer Jessica L officer: Chief Legal/Compliance Officer 7000 CARDINAL PLACE DUBLIN OH 43017
Rice Brian S officer: Chief Information Officer 7000 CARDINAL PLACE DUBLIN OH 43017
Holcomb Michele officer: EVP - Strategy & Corp. Dev. 7000 CARDINAL PLACE DUBLIN OH 43017
Hollar Jason M. officer: Chief Financial Officer 3333 BEVERLY ROAD HOFFMAN ESTATES IL 60179
Kaufmann Michael C director, officer: CEO 7000 CARDINAL PLACE DUBLIN OH 43017
Crawford Victor L. officer: CEO, Pharmaceutical Segment C/O THE PEPSI BOTTLING GROUP, INC. ONE PEPSI WAY SOMERS NY 10589
Laws Stuart G officer: SVP & Chief Accounting Officer CARDINAL HEALTH, INC. 7000 CARDINAL PLACE DUBLIN OH 43017
Evans David C director C/O THE SCOTTS MIRACLE-GRO COMPANY 14111 SCOTTSLAWN ROAD MARYSVILLE OH 43041
Darden Calvin director 11235 STROUP ROAD ROSWELL GA 30075

Cardinal Health Headlines

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