According to Fairfax Financial 's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 5.15231. At the end of 2021 the company had a P/E ratio of 3.78.
Year | P/E ratio | Change |
---|---|---|
2021 | 3.78 | -91.61% |
2020 | 45.0 | 601.16% |
2019 | 6.42 | -82.95% |
2018 | 37.6 | 351.91% |
2017 | 8.33 | -141.66% |
2016 | -20.0 | -200.54% |
2015 | 19.9 | 182.15% |
2014 | 7.05 | -155.43% |
2013 | -12.7 | -182.03% |
2012 | 15.5 |
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.