The current Price-to-Earnings (P/E) ratio for Ace Hardware Indonesia (ACEs) is 17.9424 (Trailing Twelve Months).
Understanding the P/E Ratio of Ace Hardware Indonesia (ACEs)
The Price-to-Earnings (P/E) ratio is a fundamental metric used by investors to evaluate a company's stock value. It indicates how much investors are willing to pay for each dollar of a company's earnings. For Ace Hardware Indonesia (ACEs), a prominent retail company, understanding its P/E ratio offers insight into its valuation relative to its profits.
Current P/E Ratio
As of its latest financial reports, Ace Hardware Indonesia (ACEs) has a P/E ratio (TTM) of 17.9424. This figure reflects the market's current valuation of the company's earnings over the past twelve months.
Historical P/E Context
For comparison, at the end of 2022, Ace Hardware Indonesia's P/E ratio was 12.8. The change from 2022 to the current TTM ratio provides a snapshot of how market sentiment and the company's earnings or stock price have evolved.
Summary of P/E Ratios for ACEs
| Metric | Value |
|---|---|
| Current P/E Ratio (TTM) | 17.9424 |
| P/E Ratio (End of 2022) | 12.8 |
What Does a P/E Ratio Mean for Investors?
The P/E ratio is calculated by dividing a company's current share price by its earnings per share (EPS) over a specified period, typically the last twelve months (TTM). It's a key indicator for several reasons:
- Valuation: A higher P/E ratio can suggest that investors expect higher earnings growth in the future compared to companies with lower P/E ratios. Conversely, a lower P/E might indicate that a company is undervalued or that its growth prospects are not as strong.
- Comparison: Investors often compare a company's P/E ratio to its industry average, competitors, or its own historical P/E to gauge whether the stock is relatively expensive or cheap.
- Market Sentiment: The P/E ratio can also reflect overall market sentiment towards a particular stock or sector.
For Ace Hardware Indonesia, a P/E ratio of 17.9424 suggests that investors are willing to pay approximately 17.94 times its earnings per share. When evaluating this number, it's crucial to consider the industry average for retail companies in Indonesia and the company's growth trajectory.
To learn more about the Price-to-Earnings ratio and how it's used in investment analysis, you can explore resources like Investopedia.
