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Air Products & Chemicals PE Ratio

: 24.18 (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 (2022-07-02), Air Products & Chemicals's share price is $242.75. Air Products & Chemicals's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2022 was $10.04. Therefore, Air Products & Chemicals's PE Ratio for today is 24.18.

Good Sign:

Air Products & Chemicals Inc stock PE Ratio (=23.95) is close to 2-year low of 22.45


The historical rank and industry rank for Air Products & Chemicals's PE Ratio or its related term are showing as below:

APD' s PE Ratio Range Over the Past 10 Years
Min: 9.29   Med: 24.72   Max: 58.19
Current: 24.18


During the past 13 years, the highest PE Ratio of Air Products & Chemicals was 58.19. The lowest was 9.29. And the median was 24.72.


APD's PE Ratio is ranked worse than
63.94% of 1212 companies
in the Chemicals industry
Industry Median: 16.66 vs APD: 24.18

Air Products & Chemicals's Earnings per Share (Diluted) for the three months ended in Mar. 2022 was $2.38. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2022 was $10.04.

As of today (2022-07-02), Air Products & Chemicals's share price is $242.75. Air Products & Chemicals's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2022 was $9.77. Therefore, Air Products & Chemicals's PE Ratio without NRI for today is 24.85.

During the past 13 years, Air Products & Chemicals's highest PE Ratio without NRI was 36.13. The lowest was 13.07. And the median was 25.48.

Air Products & Chemicals's EPS without NRI for the three months ended in Mar. 2022 was $2.38. Its EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2022 was $9.77.

During the past 12 months, Air Products & Chemicals's average EPS without NRI Growth Rate was 15.60% per year. During the past 3 years, the average EPS without NRI Growth Rate was 11.40% per year. During the past 5 years, the average EPS without NRI Growth Rate was 14.30% per year. During the past 10 years, the average EPS without NRI Growth Rate was 7.20% per year.

During the past 13 years, Air Products & Chemicals's highest 3-Year average EPS without NRI Growth Rate was 460.20% per year. The lowest was -76.90% per year. And the median was 6.60% per year.

Air Products & Chemicals's EPS (Basic) for the three months ended in Mar. 2022 was $2.39. Its EPS (Basic) for the trailing twelve months (TTM) ended in Mar. 2022 was $10.08.


Air Products & Chemicals PE Ratio Historical Data

The historical data trend for Air Products & Chemicals'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.

Air Products & Chemicals Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.09 24.64 27.94 35.08 27.16

Air Products & Chemicals 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 33.10 32.36 27.16 31.08 24.89

Competitive Comparison

For the Specialty Chemicals subindustry, Air Products & Chemicals'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.

   

Air Products & Chemicals PE Ratio Distribution

For the Chemicals industry and Basic Materials sector, Air Products & Chemicals's PE Ratio distribution charts can be found below:

* The bar in red indicates where Air Products & Chemicals's PE Ratio falls into.



Air Products & Chemicals 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.

Air Products & Chemicals's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=242.75/10.040
=24.18

Air Products & Chemicals's Share Price of today is $242.75.
Air Products & Chemicals'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 $10.04.

* 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.


Air Products & Chemicals  (NYSE:APD) 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.


Air Products & Chemicals PE Ratio Related Terms

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


Air Products & Chemicals Business Description

Air Products & Chemicals logo
Industry
Basic Materials » Chemicals NAICS : 325120 SIC : 2813
Address
7201 Hamilton Boulevard, Allentown, PA, USA, 18195-1501
Since its founding in 1940, Air Products has become one of the leading industrial gas suppliers globally, with operations in 50 countries and 19,000 employees. The company is the largest supplier of hydrogen and helium in the world. It has a unique portfolio serving customers in a number of industries, including chemicals, energy, healthcare, metals, and electronics. Air Products generated $10.3 billion in revenue in fiscal 2021.
Executives
Davis Lisa Ann director 2555 TELEGRAPH RD BLOOMFIELD HILLS MI 48302
Ho David H Y director 5500 WAYZATA BOULEVARD SUITE 600 GOLDEN VALLEY MN 55416
Mcglynn Margaret G director C/O MERCK & CO INC ONE MERCK DRIVE PO BOX 100 WHITEHOUSE STATION NJ 08889-0100
Paull Matthew H director MCDONALDS CORP 2915 JORIE BLVD OAK BROOK IL 60523
Monser Edward L director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: MONSER EDWARD 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;}
Carter Susan K director C/O INGERSOLL-RAND COMPANY 800-E BEATY STREET DAVIDSON NC 28036
Deaton Chad C director 12001 N HOUSTON ROSSLYN HOUSTON TX 77086
Ghasemi Seifi officer: Chairman, Pres. and CEO 100 OVERLOOK CENTER PRINCETON NJ 08540
Cogut Charles I director 7201 HAMILTON BOULEVARD ALLENTOWN PA 18195
Serhan Samir officer: Executive Vice President 7201 HAMILTON BLVD. ALLENTOWN PA 18195
Major Sean D officer: Executive VP & General Counsel 100 E. WISCONSIN AVENUE SUITE 2780 MILWAUKEE WI 53202
Flugel Russell A officer: VP, Controller and PAO 7201 HAMILTON BOULEVARD ALLENTOWN PA 18195
Crocco Michael S officer: Executive VP and CFO 7201 HAMILTON BOULEVARD ALLENTOWN PA 18195-1501
Painter Corning F. officer: Executive V.P. 7201 HAMILTON BOULEVARD ALLENTOWN PA 18195-1501
Grant Jennifer officer: VP 7201 HAMILTON BLVD ALLENTOWN PA 18195

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