Contact EnergyNZSE:CEN -0.22%75 PE Ratio (TTM) is 20.63 as of Jul. 12, 2026, which is 34% below its 10-year median of 31.24. GuruFocus rates NZSE:CEN with a GF Score™ of 75/100 and a GF Value™ of NZ$8.54 (Fairly Valued). The stock has 5 warning signs investors should review. Among 280 Utilities - Independent Power Producers companies, Contact Energy ranks worse than 56.79% on this metric.
The PE Ratio (TTM), 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 (2026-07-12), Contact Energy's share price is
NZ$9.20.
Contact Energy's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 was NZ$0.45. Therefore, Contact Energy's PE Ratio (TTM) for today is 20.63.
Good Sign:
Contact Energy Ltd stock PE Ratio (=22.12) is close to 5-year low of 21.47.
The historical rank and industry rank for Contact Energy's PE Ratio (TTM) or its related term are showing as below:
NZSE:CEN'
s PE Ratio (TTM) Range Over the Past 10 Years
Min: 11 Med: 31.24 Max: 61.78
Current: 20.63
During the past 13 years, the highest PE Ratio (TTM) of Contact Energy was 61.78. The lowest was 11.00. And the median was 31.24.
NZSE:CEN's PE Ratio (TTM) is ranked worse than 56.79% of 280
companies
in the Utilities - Independent Power Producers industry
Industry Median: 17.765
vs NZSE:CEN: 20.63
During the past 12 months, Contact Energy's average EPS without NRIGrowth Rate was 57.60% per year.
During the past 3 years, the average EPS without NRIGrowth Rate was 22.00% per year.
During the past 5 years, the average EPS without NRIGrowth Rate was 15.40% per year.
During the past 13 years, Contact Energy's highest 3-Year average EPS without NRI Growth Rate was 38.10% per year. The lowest was -17.10% per year. And the median was 3.40% per year.
Contact Energy's EPS (Basic) for the
six
months ended in Dec. 2025 was NZ$0.21.
Its EPS (Basic) for the trailing twelve months (TTM) ended in Dec. 2025 was NZ$0.45.
Contact Energy (NZSE:CEN) PE Ratio (TTM) Explanation
The PE Ratio (TTM) 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 (TTM) 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 (TTM) is positive. Also for stocks with the same PE Ratio (TTM), the one with faster growth business is more attractive.
If a company loses money, the PE Ratio (TTM) 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 (TTM) divided by the growth ratio. He thinks a company with a PE Ratio (TTM) 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 (TTM) of 20, instead of a company growing 10% a year with a PE Ratio (TTM) of 10.
Because the PE Ratio (TTM) measures how long it takes to earn back the price you pay, the PE Ratio (TTM) 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.
Investors need to be aware that the PE Ratio (TTM) 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 Ratio (TTM)s are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio (TTM) is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .
PE Ratio (TTM) 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 (TTM).
Contact Energy PE Ratio (TTM) Related Terms
Contact Energy PE Ratio (TTM) Historical Data
* Premium members only.
The historical data trend for Contact Energy's PE Ratio (TTM) 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.
Contact Energy PE Ratio (TTM) Competitor Comparison
For the Utilities - Renewable subindustry, Contact Energy's PE Ratio (TTM), along with its competitors' market caps and PE Ratio (TTM) 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.
Contact Energy PE Ratio (TTM) vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Contact Energy's PE Ratio (TTM) distribution charts can be found below:
* The bar in red indicates where Contact Energy's PE Ratio (TTM) falls into.
The PE Ratio (TTM), 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.
Contact Energy's PE Ratio (TTM) for today is calculated as
Contact Energy's Share Price of today is NZ$9.20.
For company reported semi-annually, Contact Energy's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was NZ$0.45.
* 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 Ratio (TTM)s used by different investors. They are Trailing Twelve Month PE Ratio (TTM) or PE Ratio (TTM) (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio (TTM) based on inflation-adjusted normalized PE Ratio (TTM) is called Shiller PE Ratio, after Yale professor Robert Shiller.
In the calculation of PE Ratio (TTM), 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.
Contact Energy (NZSE:CEN) has a PE Ratio (TTM) of 20.63 as of Jul. 12, 2026. Trailing 12-month P/E ratio is the ratio of share price to a company's trailing 12-month earnings per share. View historical data on Contact Energy and its competitors. This is 34% below median its historical median of 31.24. Over the past decade, Contact Energy's PE Ratio (TTM) has ranged from 11.00 to 61.78. According to the industry distribution chart, Contact Energy ranks #159 out of 280 companies in the Utilities - Independent Power Producers industry, placing it in the top 56.8%.
Is Contact Energy's PE Ratio (TTM) too high?
Contact Energy's current PE Ratio (TTM) of 20.63 is 34% below median its 10-year median of 31.24. Over the past 10 years, this metric has ranged from a low of 11.00 to a high of 61.78. The Utilities - Independent Power Producers industry median PE Ratio (TTM) is 17.77. Contact Energy's value of 20.63 is 16.1% above this industry median. Based on the distribution chart, Contact Energy ranks #159 out of 280 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, Contact Energy has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Contact Energy's PE Ratio (TTM) compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Contact Energy ranks #159 out of 280 companies for PE Ratio (TTM). This places Contact Energy in the lower half of its industry. The industry median PE Ratio (TTM) is 17.77. Contact Energy's value of 20.63 is 16.1% above this benchmark. Historically, Contact Energy's own PE Ratio (TTM) has ranged from 11.00 to 61.78 over the past decade. While the company's 10-year median is 31.24 vs. the industry median of 17.77, Contact Energy has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PE Ratio (TTM) for an Utilities - Independent Power Producers company?
The median PE Ratio (TTM) among Utilities - Independent Power Producers companies is 17.77, based on 280 companies in the industry. Companies in the top quartile (top 25%) have a PE Ratio (TTM) significantly above this median, while those in the bottom quartile fall well below. However, PE Ratio (TTM) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Contact Energy's current PE Ratio (TTM) of 20.63 is 16.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PE Ratio (TTM) mean?
A high PE Ratio (TTM) can signal that a stock is expensive relative to its fundamentals. Trailing 12-month P/E ratio is the ratio of share price to a company's trailing 12-month earnings per share. View historical data on Contact Energy and its competitors. For the Utilities - Independent Power Producers industry, the median PE Ratio (TTM) is 17.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Contact Energy's current PE Ratio (TTM) is 20.63, which is 34% below median its own 10-year median of 31.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Contact Energy stock overvalued right now?
Based on GuruFocus' analysis, Contact Energy (NZSE:CEN) is currently considered Fairly Valued. The stock's GF Value™ is NZ$8.54, compared to a current price of NZ$9.20 — trading 7.7% above its estimated fair value. The current PE Ratio (TTM) is 20.63, which is 34% below median its 10-year median of 31.24 and 16.1% above the Utilities - Independent Power Producers industry median of 17.77. Contact Energy's overall GF Score™ is 75/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PE Ratio (TTM) calculated?
PE Ratio (TTM) is calculated from a company's financial statements. For Contact Energy (NZSE:CEN), the current PE Ratio (TTM) is 20.63 as of Jul. 12, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Contact Energy (NZSE:CEN) Overvalued in 2026?
Based on GuruFocus' analysis, Contact Energy stock appears to be overvalued.
The current stock price of NZ$9.20 is trading 7.7% above its estimated GF Value™ of NZ$8.54.
GuruFocus considers Contact Energy to be Fairly Valued.
Key valuation signals for NZSE:CEN:
PE Ratio (TTM): 20.63 (34% below median its 10-year median of 31.24)
GF Value™: NZ$8.54 vs. price of NZ$9.20 (7.7% above fair value)
Industry Position: 16.1% above the Utilities - Independent Power Producers median (#159 of 280)
No single metric tells the full story. See the NZSE:CEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Contact Energy is a diversified and integrated energy company. It owns a fleet of hydro, geothermal, and gas-fired generation assets, which produce more than 25% of New Zealand's electricity. It also retails electricity and gas to nearly half a million customers.
75GF Score
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