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 (2024-04-26), WCI Communities's share price is
$23.45.
WCI Communities's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2016 was $1.30. Therefore, WCI Communities's PE Ratio (TTM) for today is 18.04.
The historical rank and industry rank for WCI Communities's PE Ratio (TTM) or its related term are showing as below:
WCIC'
s PE Ratio (TTM) Range Over the Past 10 Years
Min: At Loss Med: At Loss Max: At Loss
Current: At Loss
WCIC's PE Ratio (TTM) is not ranked
in the Homebuilding & Construction industry.
Industry Median: 10.85
vs WCIC: At Loss
WCI Communities's EPS (Basic) for the
three
months ended in Sep. 2016 was $0.33.
Its EPS (Basic) for the trailing twelve months (TTM) ended in Sep. 2016 was $1.31.
WCI Communities PE Ratio (TTM) Historical Data
The historical data trend for WCI Communities'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.
Competitive Comparison of WCI Communities's PE Ratio (TTM)
For the Residential Construction subindustry, WCI Communities'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.
WCI Communities's PE Ratio (TTM) Distribution in the Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, WCI Communities's PE Ratio (TTM) distribution charts can be found below:
* The bar in red indicates where WCI Communities's PE Ratio (TTM) falls into.
WCI Communities PE Ratio (TTM) Calculation
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.
WCI Communities's Share Price of today is $23.45.
WCI Communities's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.30.
* 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.
WCI Communities (NYSE:WCIC) 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).
WCI Communities PE Ratio (TTM) Related Terms
Thank you for viewing the detailed overview of WCI Communities's PE Ratio (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.
WCI Communities (WCI Communities) Business Description
WCI Communities Inc was incorporated in Delaware in 2009 and its predecessor company was founded in 1998. The Company is a lifestyle community developer and luxury homebuilder of single- and multi-family homes, including luxury high-rise tower units, in coastal Florida's growth markets. It owned or controlled approximately 13,300 home sites of which approximately 7,900 were owned and 5,400 were controlled by the Company. Its business is organized into three operating segments: Homebuilding, Real Estate Services and Amenities. Homebuilding segment designs, sells and builds single- and multi-family homes ranging in price from approximately $170,000 to $1.1 million and tower units ranging in price from $1.0 million to $3.6 million. Its product offerings range in size from approximately 1,100 square feet to 5,100 square feet. Additionally, its land development expertise enhances its homebuilding operations by enabling the Company to acquire and create well-amenitized master-planned communities, control the timing of home site delivery and capture the opportunity to drive margins. It actively sells in 47 different neighborhoods situated in 18 master-planned communities. Real Estate Services segment operates a full-service real estate brokerage business under the Berkshire Hathaway HomeServices brand and title services that complement its homebuilding operations by providing with additional opportunities to capitalize on increasing home prices throughout Florida. It provides these services in connection with its real estate brokerage and homebuilding operations. In Amenities segment, within its communities, it may own and/or operate resort-style club and fitness facilities, championship golf courses, country clubs and marinas. The Company competes in each of its markets with other local, regional and national homebuilders. It not only competes for homebuyers, but also for desirable land assets, financing, building materials, skilled management talent and trade labor. It also competes with other housing alternatives, such as existing home sales (including lender-owned homes acquired through foreclosure or short sales) and rental housing. Its homebuilding competitors, including larger public companies, may have long-standing relationships with local labor, materials suppliers or land sellers in certain areas, which may provide them an advantage in their respective regions or local markets. Its real estate brokerage business competes with national and regional independent real estate organizations, franchisees of national and regional real estate franchisors, discount brokerages and smaller niche companies competing in local areas. Real estate brokers compete for sales and marketing business on the basis of services offered, reputation, utilization of technology, personal contacts and brokerage commission.
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