U.S. Markets close in 2 hrs 28 mins
  • S&P 500

    4,218.55
    +52.10 (+1.25%)
     
  • Dow 30

    33,851.66
    +561.58 (+1.69%)
     
  • Nasdaq

    14,135.83
    +105.45 (+0.75%)
     
  • Russell 2000

    2,284.28
    +46.53 (+2.08%)
     
  • Crude Oil

    73.75
    +2.11 (+2.95%)
     
  • Gold

    1,782.40
    +13.40 (+0.76%)
     
  • Silver

    26.02
    +0.05 (+0.20%)
     
  • EUR/USD

    1.1922
    +0.0057 (+0.4769%)
     
  • 10-Yr Bond

    1.4840
    +0.0340 (+2.34%)
     
  • Vix

    18.34
    -2.36 (-11.40%)
     
  • GBP/USD

    1.3929
    +0.0120 (+0.8706%)
     
  • USD/JPY

    110.2080
    +0.0580 (+0.0527%)
     
  • BTC-USD

    32,348.67
    -2,418.06 (-6.96%)
     
  • CMC Crypto 200

    786.63
    -63.72 (-7.49%)
     
  • FTSE 100

    7,062.29
    +44.82 (+0.64%)
     
  • Nikkei 225

    28,010.93
    -953.15 (-3.29%)
     

P/E Ratio Insights for Royal Philips

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.

 

 

In the current session, Royal Philips Inc. (NYSE:PHG) is trading at $56.52, after a 1.69% increase. Over the past month, the stock increased by 3.61%, and in the past year, by 20.57%. With performance like this, long-term shareholders optimistic but others are more likely to look into the price-to-earnings ratio to see if the stock might be overvalued.

Assuming that all other factors are held constant, this could present itself as an opportunity for shareholders trying to capitalize on the higher share price. The stock is currently higher from its 52 week high by 0.30%.

Price Candles
Price Candles

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 PHG

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

Compared to the aggregate P/E ratio of the 124.73 in the Health Care Equipment & Supplies industry, Royal Philips Inc. has a lower P/E ratio of 36.74. Shareholders might be inclined to think that the stock might perform worse than its industry peers. It's also possible that the stock is undervalued.

Price Candles
Price Candles

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

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.