P/E ratio for Fonterra (FCG.NZ)
P/E ratio at the end of 2022: 7.18
According to Fonterra's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 6.28185. At the end of 2022 the company had a P/E ratio of 7.18.
P/E ratio history for Fonterra from 2013 to 2022
PE ratio at the end of each year
| Year | P/E ratio | Change |
|---|---|---|
| 2022 | 7.18 | 6.4% |
| 2021 | 6.74 | -14.66% |
| 2020 | 7.90 | -181.93% |
| 2019 | -9.65 | -69.89% |
| 2018 | -32.0 | -407.23% |
| 2017 | 10.4 | 11.13% |
| 2016 | 9.38 | -34.93% |
| 2015 | 14.4 | -66.77% |
| 2014 | 43.4 | 244.26% |
| 2013 | 12.6 |
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.