P/E ratio for Ashtead (AHT.L)
P/E ratio as of April 2024 (TTM): > 1000
According to Ashtead's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 1802.68. At the end of 2018 the company had a P/E ratio of 4.97.
P/E ratio history for Ashtead from 2022 to 2023
PE ratio at the end of each year
| Year | P/E ratio | Change |
|---|---|---|
| 2018 | 4.97 | -65.51% |
| 2017 | 14.4 | 22.12% |
| 2016 | 11.8 | 20.31% |
| 2015 | 9.81 | -21.01% |
| 2014 | 12.4 |
How to read a P/E ratio?
The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.
Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future.
Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.