F5, Inc.'s (NASDAQ:FFIV) P/E Is On The Mark
F5, Inc.'s (NASDAQ:FFIV) P/E Is On The Mark
When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 16x, you may consider F5, Inc. (NASDAQ:FFIV) as a stock to potentially avoid with its 24x P/E ratio. However, the P/E might be high for a reason and it requires further investigation to determine if it's justified.
Recent times have been pleasing for F5 as its earnings have risen in spite of the market's earnings going into reverse. The P/E is probably high because investors think the company will continue to navigate the broader market headwinds better than most. If not, then existing shareholders might be a little nervous about the viability of the share price.
Want the full picture on analyst estimates for the company? Then our free report on F5 will help you uncover what's on the horizon.How Is F5's Growth Trending?
In order to justify its P/E ratio, F5 would need to produce impressive growth in excess of the market.
If we review the last year of earnings growth, the company posted a terrific increase of 54%. The latest three year period has also seen an excellent 61% overall rise in EPS, aided by its short-term performance. Therefore, it's fair to say the earnings growth recently has been superb for the company.
Turning to the outlook, the next three years should generate growth of 15% each year as estimated by the analysts watching the company. That's shaping up to be materially higher than the 10% per annum growth forecast for the broader market.
In light of this, it's understandable that F5's P/E sits above the majority of other companies. Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future.
What We Can Learn From F5'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.
We've established that F5 maintains its high P/E on the strength of its forecast growth being higher than the wider market, as expected. Right now shareholders are comfortable with the P/E as they are quite confident future earnings aren't under threat. Unless these conditions change, they will continue to provide strong support to the share price.
Many other vital risk factors can be found on the company's balance sheet. Take a look at our free balance sheet analysis for F5 with six simple checks on some of these key factors.
You might be able to find a better investment than F5. If you want a selection of possible candidates, check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
當將近一半的美國公司的市盈率(或 “市盈率”)低於16倍時,您可以將F5, Inc.(納斯達克股票代碼:FFIV)視爲可能以其24倍市盈率避開的股票。但是,市盈率之高可能是有原因的,需要進一步調查以確定其是否合理。
最近一段時間令F5感到高興,因爲儘管市場收益出現逆轉,但其收益卻有所增加。市盈率可能很高,因爲投資者認爲該公司將繼續比大多數人更好地應對更廣泛的市場阻力。如果不是,那麼現有股東可能會對股價的可行性有些緊張。
想全面了解分析師對公司的估計嗎?然後,我們關於 F5 的免費報告將幫助您發現即將發生的事情。F5 的增長趨勢如何?
爲了證明其市盈率是合理的,F5需要在超過市場的情況下實現可觀的增長。
如果我們回顧一下去年的收益增長,該公司公佈了54%的驚人增長。在短期表現的推動下,最近三年期間,每股收益總體增長了61%。因此,可以公平地說,該公司最近的收益增長非常好。
展望來看,根據關注該公司的分析師的估計,未來三年每年將實現15%的增長。這將大大高於整個市場每年10%的增長預期。
有鑑於此,F5的市盈率高於其他大多數公司是可以理解的。顯然,股東們並不熱衷於轉移可能着眼於更繁榮未來的東西。
我們可以從 F5 的市盈率中學到什麼?
有人認爲,市盈率是衡量某些行業價值的次要指標,但它可能是一個有力的商業情緒指標。
我們已經確定,F5之所以保持高市盈率,是因爲其預測的增長將高於整個市場,正如預期的那樣。目前,股東對市盈率感到滿意,因爲他們非常有信心未來的收益不會受到威脅。除非這些條件發生變化,否則它們將繼續爲股價提供強有力的支撐。
在公司的資產負債表上可以找到許多其他重要的風險因素。看看我們對F5的免費資產負債表分析,對其中一些關鍵因素進行了六次簡單檢查。
你也許能找到比 F5 更好的投資。如果你想選擇可能的候選人,可以免費查看這份有趣的公司名單,這些公司的市盈率很低(但已經證明可以增加收益)。
對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。
譯文內容由第三人軟體翻譯。
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