P/E ratio for Frontier Developments (FDEV.L)
P/E ratio at the end of 2021: 39.2
According to Frontier Developments's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 860.496. At the end of 2021 the company had a P/E ratio of 39.2.
P/E ratio history for Frontier Developments from 2014 to 2021
PE ratio at the end of each year
| Year | P/E ratio | Change |
|---|---|---|
| 2021 | 39.2 | -19.61% |
| 2020 | 48.8 | 114.3% |
| 2019 | 22.8 | -86.43% |
| 2018 | 168 | 882.81% |
| 2017 | 17.1 | -57.72% |
| 2016 | 40.4 | 12.21% |
| 2015 | 36.0 | -200.37% |
| 2014 | -35.8 |
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.