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Select Medical Holdings PE Ratio

: 8.42 (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 (2021-11-30), Select Medical Holdings's share price is $26.85. Select Medical Holdings's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $3.19. Therefore, Select Medical Holdings's PE Ratio for today is 8.42.

Good Sign:

Select Medical Holdings Corp stock PE Ratio (=8.82) is close to 5-year low of 8.81


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

NYSE:SEM' s PE Ratio Range Over the Past 10 Years
Min: 7.58   Med: 13.43   Max: 26.88
Current: 8.42

7.58
26.88

During the past 13 years, the highest PE Ratio of Select Medical Holdings was 26.88. The lowest was 7.58. And the median was 13.43.


NYSE:SEM's PE Ratio is ranked higher than
89% of the 373 Companies
in the Healthcare Providers & Services industry.

( Industry Median: 26.73 vs. NYSE:SEM: 8.42 )

Select Medical Holdings's Earnings per Share (Diluted) for the three months ended in Sep. 2021 was $0.57. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $3.19.

As of today (2021-11-30), Select Medical Holdings's share price is $26.85. Select Medical Holdings's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $3.19. Therefore, Select Medical Holdings's PE Ratio without NRI for today is 8.42.

During the past 13 years, Select Medical Holdings's highest PE Ratio without NRI was 26.88. The lowest was 7.58. And the median was 13.43.

Select Medical Holdings's EPS without NRI for the three months ended in Sep. 2021 was $0.57. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $3.19.

During the past 12 months, Select Medical Holdings's average EPS without NRI Growth Rate was 100.50% per year. During the past 3 years, the average EPS without NRI Growth Rate was 13.20% per year. During the past 5 years, the average EPS without NRI Growth Rate was 11.40% per year. During the past 10 years, the average EPS without NRI Growth Rate was 9.10% per year.

During the past 13 years, Select Medical Holdings's highest 3-Year average EPS without NRI Growth Rate was 112.50% per year. The lowest was -19.80% per year. And the median was 10.90% per year.

Select Medical Holdings's EPS (Basic) for the three months ended in Sep. 2021 was $0.57. Its EPS (Basic) for the trailing twelve months (TTM) ended in Sep. 2021 was $3.19.


Select Medical Holdings PE Ratio Historical Data

The historical data trend for Select Medical Holdings'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.

Select Medical Holdings 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 15.23 13.27 15.05 21.22 14.33

Select Medical Holdings 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 13.09 14.33 14.45 13.25 11.34

Competitive Comparison

For the Medical Care Facilities subindustry, Select Medical Holdings'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.

   

Select Medical Holdings PE Ratio Distribution

For the Healthcare Providers & Services industry and Healthcare sector, Select Medical Holdings's PE Ratio distribution charts can be found below:

* The bar in red indicates where Select Medical Holdings's PE Ratio falls into.



Select Medical Holdings 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.

Select Medical Holdings's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=26.85/3.190
=8.42

Select Medical Holdings's Share Price of today is $26.85.
Select Medical Holdings'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 $3.19.

* 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.


Select Medical Holdings  (NYSE:SEM) 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.


Select Medical Holdings PE Ratio Related Terms

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


Select Medical Holdings Business Description

Select Medical Holdings logo
Industry
Traded in Other Exchanges
Address
4714 Gettysburg Road, P.O. Box 2034, Mechanicsburg, PA, USA, 17055
Select Medical Holdings Corp is a healthcare company that operates through four main segments: critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and Concentra institutions. Critical illness recovery hospitals and rehabilitation centers are designed for patients requiring extended recovery time with medical services. These two sectors combined compose roughly half of the total revenue and include over 100 critical illness recovery hospitals and inpatient rehab facilities. The outpatient rehabilitation segment includes over 1,700 rehabilitation clinics. The Concentra segment includes over 500 institutions. The company is headquartered in Pennsylvania, and it operates across the United States.
Executives
Ortenzio Rocco A director, officer: Vice Chairman and Co-Founder SELECT MEDICAL CORP 4716 OLD GETTYSBURG RD PO BOX 2034 MECHANICSBURG PA 17055
Romberger Scott A officer: Senior Vice President 4716 OLD GETTYSBURG ROAD PO BOX 2034 MECHANICSBURG PA 17055
Tarvin Michael E officer: Executive Vice President 4716 OLD GETTYSBURG ROAD PO BOX 2034 MECHANICSBURG PA 17055
Saich John A. officer: Executive Vice President C/O SELECT MEDICAL HOLDINGS CORPORATION 4714 GETTYSBURG ROAD MECHANICSBURG PA 17055
Chernow David S officer: President and CEO C/O JUNIOR ACHIEVEMENT INC ONE EDUCATION WAY COLORADO SPRINGS CO 80906
Jackson Martin F officer: Executive Vice President 4716 OLD GETTYSBURG ROAD PO BOX 2034 MECHANICSBURG PA 17055
Thomas Daniel director C/O SELECT MEDICAL CORPORATION 4714 GETTYSBURG ROAD P.O. BOX 2034 MECHANICSBURG PA 17055
Cressey Bryan C director C/O CLARION TECHNOLOGIES INC 235 CENTRAL AVE HOLLAND MI 49423
Scully Thomas director 320 PARK AVENUE, SUITE # 2500 NEW YORK NM 10022
Carson Russell L director 320 PARK AVENUE STE 2500 NEW YORK NY 10022
Frist William H. director 600 MONTGOMERY STREET SAN FRANCISCO CA 94111
Ely James S. Iii director 4000 MERIDIAN BLVD FRANKLIN TN 37067
Ortenzio Robert A director, officer: Exec. Chairman and Co-Founder 4718 OLD GETTYSBURG RD POST OFFICE BOX 2034 MECHANICSBURG PA 30309
Tavenner Marilyn B director BOULDERS III 7800 BEAUFORT SPRING DR RICHMOND VA 23235
Breighner Robert G. Jr officer: Vice President, Compliance C/O SELECT MEDICAL HOLDINGS CORPORATION 4714 GETTYSBURG ROAD MACHANICSBURG PA 17055

Select Medical Holdings Headlines

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