P/E ratio for Sterling Tools (STERTOOLS.NS)
P/E ratio as of May 2024 (TTM): 25.5
According to Sterling Tools's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 25.5237. At the end of 2022 the company had a P/E ratio of 20.7.
P/E ratio history for Sterling Tools from 2013 to 2023
PE ratio at the end of each year
| Year | P/E ratio | Change |
|---|---|---|
| 2022 | 20.7 | -6.82% |
| 2021 | 22.2 | -31.7% |
| 2020 | 32.5 | 16.51% |
| 2019 | 27.9 | |
| 2015 | 12.8 | 1.47% |
| 2014 | 12.6 | 176.43% |
| 2013 | 4.57 |
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.