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Southwest Gas Holdings PE Ratio

: 14.90 (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 (2021-10-27), Southwest Gas Holdings's share price is $68.70. Southwest Gas Holdings's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $4.61. Therefore, Southwest Gas Holdings's PE Ratio for today is 14.90.


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

NYSE:SWX' s PE Ratio Range Over the Past 10 Years
Min: 13.44   Med: 18.1   Max: 28.29
Current: 14.9

13.44
28.29

During the past 13 years, the highest PE Ratio of Southwest Gas Holdings was 28.29. The lowest was 13.44. And the median was 18.10.


NYSE:SWX's PE Ratio is ranked lower than
53% of the 112 Companies
in the Utilities - Regulated industry.

( Industry Median: 17.20 vs. NYSE:SWX: 14.90 )

Southwest Gas Holdings's Earnings per Share (Diluted) for the three months ended in Jun. 2021 was $0.43. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $4.61.

As of today (2021-10-27), Southwest Gas Holdings's share price is $68.70. Southwest Gas Holdings's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $4.61. Therefore, Southwest Gas Holdings's PE Ratio without NRI for today is 14.90.

During the past 13 years, Southwest Gas Holdings's highest PE Ratio without NRI was 28.29. The lowest was 13.44. And the median was 18.10.

Southwest Gas Holdings's EPS without NRI for the three months ended in Jun. 2021 was $0.43. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $4.61.

During the past 12 months, Southwest Gas Holdings's average EPS without NRI Growth Rate was 22.60% per year. During the past 3 years, the average EPS without NRI Growth Rate was 0.80% per year. During the past 5 years, the average EPS without NRI Growth Rate was 6.80% per year. During the past 10 years, the average EPS without NRI Growth Rate was 5.90% per year.

During the past 13 years, Southwest Gas Holdings's highest 3-Year average EPS without NRI Growth Rate was 154.60% per year. The lowest was -50.20% per year. And the median was 6.80% per year.

Southwest Gas Holdings's EPS (Basic) for the three months ended in Jun. 2021 was $0.43. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2021 was $4.63.


Southwest Gas Holdings PE Ratio Historical Data

The historical data trend for Southwest Gas 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.

Southwest Gas 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 24.09 19.92 20.79 19.28 14.67

Southwest Gas Holdings 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 18.36 15.85 14.67 14.14 14.36

Competitive Comparison

For the Utilities - Regulated Gas subindustry, Southwest Gas 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.

   

Southwest Gas Holdings PE Ratio Distribution

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

* The bar in red indicates where Southwest Gas Holdings's PE Ratio falls into.



Southwest Gas 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.

Southwest Gas Holdings's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=68.70/4.610
=14.90

Southwest Gas Holdings's Share Price of today is $68.70.
Southwest Gas Holdings'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 $4.61.

* 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.


Southwest Gas Holdings  (NYSE:SWX) 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.


Southwest Gas Holdings PE Ratio Related Terms

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


Southwest Gas Holdings Business Description

Southwest Gas Holdings logo
Industry
Utilities » Utilities - Regulated NAICS : 221210 SIC : 4923
Traded in Other Exchanges
Address
8360 South Durango Drive, Post Office Box 98510, Las Vegas, NV, USA, 89193-8510
Southwest Gas Holdings Inc is a utility company primarily engaged in the purchasing, distributing, and transporting of natural gas in the American Southwest. The company segments its activities into natural gas operations and construction services business units. The first of these encompasses the company's core natural gas business as one of the largest distributors in the states of Arizona and Nevada. The natural gas operations division is responsible for roughly half of Southwest Gas' total revenue through the sale of natural gas to mainly residential and small commercial customers. The construction services segment generates the other half of the company's total revenue from the underground piping contractor services that its subsidiary, Centuri Construction Group, provides.
Executives
Daily Paul M officer: CEO/Centuri Group, Inc. C/O SOUTHWEST GAS HOLDINGS, INC. 5241 SPRING MOUNTAIN ROAD LAS VEGAS NV 89150
Debonis Eric officer: SVP/Operations 5241 SPRING MOUNTAIN ROAD LAS VEGAS NV 89150
Hester John P director, officer: President and CEO 5241 SPRING MOUNTAIN ROAD LAS VEGAS NV 89150
Boughner Robert L director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BOUGHNER ROBERT L 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;}
Cardenas Jose A director 5241 SPRING MOUNTAIN ROAD LAS VEGAS NV 89150
Lewis-raymond Jane director 5241 SPRING MOUNTAIN RD LAS VEGAS NV 89131
Thornton Leslie T director 3921 COURTLAND CIRCLE ALEXANDRIA VA 22305
Esparza Jose Luis Jr officer: SVP/IS/Customer Engagement 5241 SPRING MOUNTAIN RD LAS VEGAS NV 89150
Brown Justin L officer: SVP/General Counsel 5241 SPRING MOUNTAIN RD LAS VEGAS NV 89150
Colvin Lori L officer: VP/Controller/CAO 5241 SPRING MOUNTAIN RD LAS VEGAS NV 89150
Peterson Gregory J officer: SVP/Chief Financial Officer 5241 SPRING MOUNTAIN ROAD LAS VEGAS NV 89150
Haller Karen S officer: EVP/Chief Legal/Admin Officer 5241 SPRING MOUNTAIN ROAD LAS VEGAS NV 89150
Thomas Thomas A director 5241 SPRING MOUNTAIN ROAD LAS VEGAS NV 89150
Comer Stephen C director 5241 SPRING MOUNTAIN ROAD LAS VEGAS NV 89150
Chestnut Thomas E director P O BOX 98510 LAS VEGAS NV 89193

Southwest Gas Holdings Headlines

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