With a price-to-earnings (or "P/E") ratio of 70.5x Revvity, Inc. (NYSE:RVTY) may be sending very bearish signals at the moment, given that almost half of all companies in the United States have P/E ratios under 17x and even P/E's lower than 9x are not unusual. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's so lofty.
Revvity has been struggling lately as its earnings have declined faster than most other companies. It might be that many expect the dismal earnings performance to recover substantially, which has kept the P/E from collapsing. If not, then existing shareholders may be very nervous about the viability of the share price.
NYSE:RVTY Price to Earnings Ratio vs Industry May 13th 2024
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Revvity.
What Are Growth Metrics Telling Us About The High P/E?
In order to justify its P/E ratio, Revvity would need to produce outstanding growth well in excess of the market.
Taking a look back first, the company's earnings per share growth last year wasn't something to get excited about as it posted a disappointing decline of 48%. As a result, earnings from three years ago have also fallen 85% overall. So unfortunately, we have to acknowledge that the company has not done a great job of growing earnings over that time.
Looking ahead now, EPS is anticipated to climb by 27% per year during the coming three years according to the analysts following the company. Meanwhile, the rest of the market is forecast to only expand by 9.9% each year, which is noticeably less attractive.
With this information, we can see why Revvity is trading at such a high P/E compared to the market. It seems most investors are expecting this strong future growth and are willing to pay more for the stock.
The Bottom Line On Revvity's P/E
It's argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.
As we suspected, our examination of Revvity's analyst forecasts revealed that its superior earnings outlook is contributing to its high P/E. Right now shareholders are comfortable with the P/E as they are quite confident future earnings aren't under threat. It's hard to see the share price falling strongly in the near future under these circumstances.
We don't want to rain on the parade too much, but we did also find 2 warning signs for Revvity that you need to be mindful of.
If you're unsure about the strength of Revvity's business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.
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Revvity, Inc.(纽约证券交易所代码:RVTY)的市盈率(或"P/E")为70.5倍,目前可能发出了非常看跌的信号,因为美国几乎有一半公司的市盈率低于17倍,甚至低于9倍的市盈率也并不罕见。但是,仅按面值计算市盈率是不明智的,因为可以解释为什么市盈率如此之高。
由于其收益的下降速度快于大多数其他公司,Revvity最近一直处于困境。许多人可能预计,惨淡的收益表现将大幅恢复,这阻止了市盈率的暴跌。如果不是,那么现有股东可能会对股价的可行性感到非常担忧。
纽约证券交易所:RVTY 与行业的市盈率 2024 年 5 月 13 日
如果你想了解分析师对未来的预测,你应该查看我们关于Revvity的免费报告。
关于高市盈率,增长指标告诉我们什么?
为了证明其市盈率是合理的,Revvity需要实现远远超过市场的出色增长。
首先回顾一下,该公司去年的每股收益增长并不令人兴奋,因为它公布了令人失望的48%的跌幅。结果,三年前的总体收益也下降了85%。因此,不幸的是,我们必须承认,在此期间,该公司在增加收益方面做得不好。
根据关注该公司的分析师的说法,展望未来,预计未来三年每股收益将每年增长27%。同时,预计其余市场每年仅增长9.9%,吸引力明显降低。
有了这些信息,我们可以明白为什么Revvity的市盈率与市场相比如此之高。看来大多数投资者都在期待这种强劲的未来增长,并愿意为该股支付更多费用。
Revvity 市盈率的底线
有人认为,市盈率是衡量某些行业价值的次要指标,但它可能是一个有力的商业情绪指标。
正如我们所怀疑的那样,我们对Revvity分析师预测的审查显示,其优异的盈利前景是其高市盈率的原因。目前,股东们对市盈率感到满意,因为他们非常有信心未来的收益不会受到威胁。在这种情况下,很难看到股价在不久的将来会强劲下跌。
我们不想在游行队伍中下太多雨,但我们也确实找到了两个需要注意的 Revvity 警告标志。
如果您不确定Revvity业务的实力,为什么不浏览我们的交互式股票清单,这些股票具有稳健的业务基本面,其中列出了您可能错过的其他一些公司。
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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。