U.S. markets closed
  • S&P Futures

    3,254.75
    +16.75 (+0.52%)
     
  • Dow Futures

    26,840.00
    +125.00 (+0.47%)
     
  • Nasdaq Futures

    10,959.25
    +67.50 (+0.62%)
     
  • Russell 2000 Futures

    1,459.30
    +12.30 (+0.85%)
     
  • Crude Oil

    40.41
    +0.10 (+0.25%)
     
  • Gold

    1,869.30
    -7.60 (-0.40%)
     
  • Silver

    23.05
    -0.15 (-0.65%)
     
  • EUR/USD

    1.1675
    0.0000 (-0.00%)
     
  • 10-Yr Bond

    0.6660
    -0.0100 (-1.48%)
     
  • Vix

    28.51
    -0.07 (-0.24%)
     
  • GBP/USD

    1.2757
    +0.0005 (+0.04%)
     
  • USD/JPY

    105.5000
    +0.0980 (+0.09%)
     
  • BTC-USD

    10,721.61
    -38.98 (-0.36%)
     
  • CMC Crypto 200

    218.53
    +9.58 (+4.59%)
     
  • FTSE 100

    5,822.78
    -76.48 (-1.30%)
     
  • Nikkei 225

    23,245.93
    +158.11 (+0.68%)
     

A Look Into Celanese's Price Over Earnings

Benzinga Insights

 

Looking into the current session, Celanese Inc. (NYSE: CE) shares are trading at $93.41, after a 0.29% increase. Moreover, over the past month, the stock went up by 10.02%, but in the past year, fell by 12.85%. Shareholders might be interested in knowing whether the stock is undervalued, even if the company is performing up to par in the current session.

The stock is currently above from its 52 week low by 77.25%. Assuming that all other factors are held constant, this could present itself as an opportunity for investors trying to diversify their portfolio with Chemicals stocks, and capitalize on the lower share price observed over the year.

The P/E ratio measures the current share price to the company's EPS. It is used by long-term investors to analyze the company’s current performance against its past earnings, historical data and aggregate market data for the industry or the indices, such as S&P 500. A higher P/E indicates that investors expect the company to perform better in the future, and the stock is probably overvalued, but not necessarily. It also shows that investors are willing to pay a higher share price currently, because they expect the company to perform better in the upcoming quarters. This leads investors to also remain optimistic about rising dividends in the future.

View more earnings on CE

Depending on the particular phase of a business cycle, some industries will perform better than others.

Celanese Inc. has a better P/E ratio of 15.21 than the aggregate P/E ratio of 14.34 of the Chemicals industry. Ideally, one might believe that Celanese Inc. might perform better in the future than it’s industry group, but it’s probable that the stock is overvalued.

There are many limitations to price to earnings ratio. It is sometimes difficult to determine the nature of the earnings makeup of a company. Shareholders might not get what they're looking for, from trailing earnings.

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.