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Procter & Gamble Co PE Ratio

: 25.76 (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 (2022-05-25), Procter & Gamble Co's share price is $147.63. Procter & Gamble Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2022 was $5.73. Therefore, Procter & Gamble Co's PE Ratio for today is 25.76.

Good Sign:

Procter & Gamble Co stock PE Ratio (=25.75) is close to 3-year low of 23.2


The historical rank and industry rank for Procter & Gamble Co's PE Ratio or its related term are showing as below:

PG' s PE Ratio Range Over the Past 10 Years
Min: 14.98   Med: 23.2   Max: 88.4
Current: 25.76


During the past 13 years, the highest PE Ratio of Procter & Gamble Co was 88.40. The lowest was 14.98. And the median was 23.20.


PG's PE Ratio is ranked worse than
64.95% of 1321 companies
in the Consumer Packaged Goods industry
Industry Median: 17.60 vs PG: 25.76

Procter & Gamble Co's Earnings per Share (Diluted) for the three months ended in Mar. 2022 was $1.33. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2022 was $5.73.

As of today (2022-05-25), Procter & Gamble Co's share price is $147.63. Procter & Gamble Co's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2022 was $5.73. Therefore, Procter & Gamble Co's PE Ratio without NRI for today is 25.76.

During the past 13 years, Procter & Gamble Co's highest PE Ratio without NRI was 88.40. The lowest was 15.62. And the median was 24.03.

Procter & Gamble Co's EPS without NRI for the three months ended in Mar. 2022 was $1.33. Its EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2022 was $5.73.

During the past 12 months, Procter & Gamble Co's average EPS without NRI Growth Rate was 5.50% per year. During the past 3 years, the average EPS without NRI Growth Rate was 14.40% per year. During the past 5 years, the average EPS without NRI Growth Rate was 6.60% per year. During the past 10 years, the average EPS without NRI Growth Rate was 1.00% per year.

During the past 13 years, Procter & Gamble Co's highest 3-Year average EPS without NRI Growth Rate was 147.00% per year. The lowest was -50.50% per year. And the median was 8.90% per year.

Procter & Gamble Co's EPS (Basic) for the three months ended in Mar. 2022 was $1.37. Its EPS (Basic) for the trailing twelve months (TTM) ended in Mar. 2022 was $5.91.


Procter & Gamble Co PE Ratio Historical Data

The historical data trend for Procter & Gamble Co'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.

Procter & Gamble Co 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 15.59 21.27 76.68 24.11 24.53

Procter & Gamble Co Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 24.94 24.53 25.56 28.90 26.67

Competitive Comparison

For the Household & Personal Products subindustry, Procter & Gamble Co'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.

   

Procter & Gamble Co PE Ratio Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Procter & Gamble Co's PE Ratio distribution charts can be found below:

* The bar in red indicates where Procter & Gamble Co's PE Ratio falls into.



Procter & Gamble Co 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.

Procter & Gamble Co's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=147.63/5.730
=25.76

Procter & Gamble Co's Share Price of today is $147.63.
Procter & Gamble Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $5.73.

* 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.


Procter & Gamble Co  (NYSE:PG) 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.


Procter & Gamble Co PE Ratio Related Terms

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


Procter & Gamble Co Business Description

Procter & Gamble Co logo
Industry
Address
One Procter and Gamble Plaza, Cincinnati, OH, USA, 45202
Since its founding in 1837, Procter & Gamble has become one of the world's largest consumer product manufacturers, generating more than $75 billion in annual sales. It operates with a lineup of leading brands, including 21 that generate more than $1 billion each in annual global sales, such as Tide laundry detergent, Charmin toilet paper, Pantene shampoo, and Pampers diapers. P&G sold its last remaining food brand, Pringles, to Kellogg in calendar 2012. Sales outside its home turf represent around 55% of the firm's consolidated total, with around one third coming from emerging markets.
Executives
Keith R. Alexandra officer: CEO - Beauty ONE PROCTER & GAMBLE PLAZA CINCINNATI OH 45202
Blake Francis S director 2455 PACES FERRY RD ATLANTA GA 30339
Chang Amy director 2100 SEAPORT BLVD. C/O INFORMATICA CORPORATION REDWOOD CITY CA 94063
Mccarthy Christine M director 500 SOUTH BUENA VISTA STREET BURBANK CA 91521-0964
Jimenez Joseph director C/O HEINZ CO PO BOX 57 PITTSBURGH PA 15230-0057
Whitman Margaret C director EBAY INC. 2145 HAMILTON AVENUE SAN JOSE CA 95125
Lee Debra L director C/O BLACK ENTERTAINMENT 1 BET PLZ. 1900W PLACE N.W. WASHINGTON DC 20018
Trian Fund Management, L.p. director 280 PARK AVENUE 41ST FLOOR NEW YORK NY 10017
Peltz Nelson director 280 PARK AVENUE 41ST FLOOR NEW YORK NY 10017
Woertz Patricia A director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: WOERTZ PATRICIA A 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;}
Mcnerney W James Jr director 2898 HURLINGHAM DRIVE WELLINGTON FL 33414
Braly Angela F director 120 MONUMENT CIRCLE INDIANAPOLIS IN 46204
Bishop Steven D officer: CEO - Health Care ONE PROCTER & GAMBLE PLAZA CINCINNATI OH 45202
Aguilar Moses Victor Javier officer: Chf Rsch, Dev & Innov Officer ONE PROCTER & GAMBLE PLAZA CINCINNATI OH 45202
Sheppard Valarie L officer: Controller, Treas. & Group VP 1 PROCTER & GAMBLE PLAZA CINCINNATI OH 45202

Procter & Gamble Co Headlines

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