GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Signet Jewelers Ltd (NYSE:SIG) » Definitions » PE Ratio

Signet Jewelers (Signet Jewelers) PE Ratio

: 6.33 (As of Today)
View and export this data going back to 1950. Start your Free Trial

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 (2024-04-19), Signet Jewelers's share price is $94.13. Signet Jewelers's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jan. 2024 was $14.86. Therefore, Signet Jewelers's PE Ratio for today is 6.33.

Good Sign:

Signet Jewelers Ltd stock PE Ratio (=6.43) is close to 1-year low of 5.99


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

SIG' s PE Ratio Range Over the Past 10 Years
Min: 5.06   Med: 12.32   Max: 32.1
Current: 6.33


During the past 13 years, the highest PE Ratio of Signet Jewelers was 32.10. The lowest was 5.06. And the median was 12.32.


SIG's PE Ratio is ranked better than
91.98% of 748 companies
in the Retail - Cyclical industry
Industry Median: 17.385 vs SIG: 6.33

Signet Jewelers's Earnings per Share (Diluted) for the three months ended in Jan. 2024 was $11.62. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jan. 2024 was $14.86.

As of today (2024-04-19), Signet Jewelers's share price is $94.13. Signet Jewelers's EPS without NRI for the trailing twelve months (TTM) ended in Jan. 2024 was $10.18. Therefore, Signet Jewelers's PE Ratio without NRI for today is 9.25.

During the past 13 years, Signet Jewelers's highest PE Ratio without NRI was 57.86. The lowest was 1.92. And the median was 10.43.

Signet Jewelers's EPS without NRI for the three months ended in Jan. 2024 was $6.66. Its EPS without NRI for the trailing twelve months (TTM) ended in Jan. 2024 was $10.18.

During the past 12 months, Signet Jewelers's average EPS without NRI Growth Rate was -12.10% per year. During the past 3 years, the average EPS without NRI Growth Rate was 75.90% per year. During the past 5 years, the average EPS without NRI Growth Rate was 48.80% per year. During the past 10 years, the average EPS without NRI Growth Rate was 5.00% per year.

During the past 13 years, Signet Jewelers's highest 3-Year average EPS without NRI Growth Rate was 123.20% per year. The lowest was -53.40% per year. And the median was 16.40% per year.

Signet Jewelers's EPS (Basic) for the three months ended in Jan. 2024 was $13.77. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jan. 2024 was $17.27.


Signet Jewelers PE Ratio Historical Data

The historical data trend for Signet Jewelers'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.

Signet Jewelers Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.36 At Loss 7.05 11.57 6.63

Signet Jewelers Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 11.57 7.37 9.16 8.45 6.63

Competitive Comparison

For the Luxury Goods subindustry, Signet Jewelers'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.


Signet Jewelers PE Ratio Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Signet Jewelers's PE Ratio distribution charts can be found below:

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



Signet Jewelers 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.

Signet Jewelers's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=94.13/14.860
=6.33

Signet Jewelers's Share Price of today is $94.13.
Signet Jewelers's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $14.86.

* 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.


Signet Jewelers  (NYSE:SIG) 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.


Signet Jewelers PE Ratio Related Terms

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


Signet Jewelers (Signet Jewelers) Business Description

Traded in Other Exchanges
Address
2 Church Street, Clarendon House, Hamilton, BMU, HM11
Signet Jewelers Ltd is a retailer of diamond jewelry. Its merchandise mix includes bridal, fashion, watches and others. The bridal category includes engagement, wedding and anniversary purchases. Its segments are the North America segment, the International segment, and the Other segment. The North America segment contributes to the majority of the revenue.
Executives
Virginia Drosos director, officer: Chief Executive Officer CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11
Howard A Melnick officer: Chief Information Officer C/O SIGNET JEWELERS LIMITED, 375 GHENT ROAD, AKRON OH 44333
Mary Elizabeth Finn officer: Chief People Officer 770 BROADWAY, NEW YORK NY 10003
Stash Ptak officer: * See Remarks 375 GHENT RD, AKRON OH 44333
William Brace officer: See Remarks 375 GHENT RD, AKRON OH 44333
Joan M Hilson officer: Chief Financial Officer 150 THORN HILL DRIVE, WARRENDALE PA 15086-7528
Oded Edelman officer: President of JamesAllen.com CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11
Stephen E. Lovejoy officer: Chief Supply Chain Officer C/O SIGNET JEWELERS LIMITED, 375 GHENT ROAD, AKRON OH 44333
Zackery A Hicks director C/O SIGNET JEWELERS LIMITED, 375 GHENT ROAD, AKRON OH 44333
Brian A Tilzer director CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11
Rebecca Wooters officer: Chief Digital Officer 375 GHENT RD, AKRON OH 44333
Jamie Singleton officer: See Remarks 9797 ROMBAUER, DALLAS TX 75019
Helen Mccluskey director 2211 REDDING ROAD, FAIRFIELD CT 06430
Eugenia Ulasewicz director CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11
H. Todd Stitzer director CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11