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CenterPoint Energy PE Ratio

: 20.11 (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 (2021-10-17), CenterPoint Energy's share price is $26.75. CenterPoint Energy's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $1.33. Therefore, CenterPoint Energy's PE Ratio for today is 20.11.


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

NYSE:CNP' s PE Ratio Range Over the Past 10 Years
Min: 5.73   Med: 19.5   Max: 57.07
Current: 20.11

5.73
57.07

During the past 13 years, the highest PE Ratio of CenterPoint Energy was 57.07. The lowest was 5.73. And the median was 19.50.


NYSE:CNP's PE Ratio is ranked lower than
56% of the 112 Companies
in the Utilities - Regulated industry.

( Industry Median: 17.20 vs. NYSE:CNP: 20.11 )

CenterPoint Energy's Earnings per Share (Diluted) for the three months ended in Jun. 2021 was $0.37. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $1.33.

As of today (2021-10-17), CenterPoint Energy's share price is $26.75. CenterPoint Energy's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $1.34. Therefore, CenterPoint Energy's PE Ratio without NRI for today is 19.96.

During the past 13 years, CenterPoint Energy's highest PE Ratio without NRI was 57.07. The lowest was 5.83. And the median was 19.31.

CenterPoint Energy's EPS without NRI for the three months ended in Jun. 2021 was $0.37. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $1.34.

During the past 13 years, CenterPoint Energy's highest 3-Year average EPS without NRI Growth Rate was 90.30% per year. The lowest was -52.30% per year. And the median was 0.40% per year.

CenterPoint Energy's EPS (Basic) for the three months ended in Jun. 2021 was $0.38. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2021 was $1.35.


CenterPoint Energy PE Ratio Historical Data

The historical data trend for CenterPoint Energy'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.

CenterPoint Energy Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.64 6.87 38.15 20.50 At Loss

CenterPoint Energy Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 At Loss At Loss At Loss 21.17 18.44

Competitive Comparison

For the Utilities - Regulated Electric subindustry, CenterPoint Energy'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.

   

CenterPoint Energy PE Ratio Distribution

For the Utilities - Regulated industry and Utilities sector, CenterPoint Energy's PE Ratio distribution charts can be found below:

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



CenterPoint Energy 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.

CenterPoint Energy's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=26.75/1.330
=20.11

CenterPoint Energy's Share Price of today is $26.75.
CenterPoint Energy's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.33.

* 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.


CenterPoint Energy  (NYSE:CNP) 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.


CenterPoint Energy PE Ratio Related Terms

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


CenterPoint Energy Business Description

CenterPoint Energy logo
Industry
Utilities » Utilities - Regulated NAICS : 221122 SIC : 4911
Traded in Other Exchanges
Address
1111 Louisiana, Houston, TX, USA, 77002
CenterPoint Energy owns a portfolio of energy-related businesses. Its regulated electric utility provides transmission and distribution services to more than 2.5 million customers in the Houston area, southern Indiana, and west central Ohio. The company has natural gas distribution systems in six states serving approximately 4 million customers. CenterPoint owns approximately 54% of Enable Midstream Partners, a partnership consisting of natural gas processing and storage facilities and more than 21,000 miles of interstate, intrastate, and gathering pipelines in the midcontinent region. Enable has announced plans to merge with Energy Transfer. We expect this will lead to CenterPoint divesting its midstream investment, becoming a fully regulated utility.
Executives
Wells Jason P. officer: EVP & CFO 77 BEALE ST. P.O. BOX 770000 SAN FRANCISCO CA 94177
Knight Gregory E. officer: EVP Cust. Trans. & Bus. Svcs. 1111 LOUISIANA STREET #4600 HOUSTON TX 77002
Harkel-rumford Lynne Louise officer: SVP and Chief HR Officer 1111 LOUISIANA STREET #4600 HOUSTON TX 77002
Karuturi Monica officer: SVP and General Counsel 1111 LOUISIANA STREET #4600 HOUSTON TX 77002
Carroll Milton director, officer: Executive Chairman C/O CENTERPOINT ENERGY, INC. 1111 LOUISIANA STREET HOUSTON TX 77002
Lesar David J director, officer: President & CEO PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: LESAR DAVID J 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;}
Colvin Kristie officer: Interim EVP and CFO and CAO 1111 LOUISIANA HOUSTON TX 77002
Cummings Earl M director 1111 LOUISIANA STREET #4600 HOUSTON TX 77002
Smitherman Barry T director NRG ENERGY, INC., 804 CARNEGIE CENTER PRINCETON NJ 08540
Somerhalder John W Ii director, officer: Interim President and CEO TEN PEACHTREE PLACE ATLANTA 2Q 30309
Mclean Scott J director 4400 POST OAK PARKWAY 4TH FL HOUSTON TX 77027
Biddle Leslie D. director 111 WEST 33RD STREET 12TH FLOOR NEW YORK NY 10120
Smith Phillip R director 1111 LOUISIANA HOUSTON TX 77002
Pound Ted director C/O ALLIS-CHALMERS 5075 WESTHIEMER, #890 HOUSTON TX 77056
Rheney Susan director 919 MILAM SUITE 2100 HOUSTON TX 77002

CenterPoint Energy Headlines

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