Low Price-Earnings Ratio (Historical) Formula in Excel

Understanding Low Price-Earnings Ratio (Historical)

The Low Price-Earnings Ratio (Historical) helps you quickly identify potentially undervalued stocks by looking at the period’s lowest P/E ratio. A lower P/E ratio can suggest that a stock is trading at a discount relative to its earnings, making this function highly valuable for investors and analysts looking for potential bargains in the market.

• Purpose: To retrieve the historically lowest price-to-earnings ratio for a stock over a specified period.
• Key Benefits:
  • Determines potential undervaluation.
  • Useful for comparative analysis across different timeframes.
  • Helps gauge investor perception and historical pricing trends.
• When to Use: Use this function when you want to analyze a company’s price-to-earnings trend to evaluate if the current valuation is attractive relative to previous periods.

? Pro Tip: Combine the Low Price-Earnings Ratio (Historical) with other fundamental metrics (like revenue growth or market cap) for a more comprehensive analysis.

Syntax and Parameters

Use the following syntax in your Excel sheet powered by MarketXLS:

=hf_Low_Price_Earnings_Ratio(Symbol, year, [quarter], [TTM])

Return Value:
• Returns a numeric value indicating the historically lowest price-to-earnings ratio for the specified symbol and timeframe.
• Returns "NA" if data is unavailable, the symbol is invalid, or if licensing conditions aren’t met.

?? Note: This function relies on real-time API calls. Performance may vary based on your internet speed and the volume of requests.

Examples and Usage

Below are some common use cases illustrating different ways to pass date inputs and symbols:

1. By referring to a cell for the symbol and a direct year entry:

   =hf_Low_Price_Earnings_Ratio(A2, 2022)

   (Where cell A2 contains "MSFT".)

2. Directly using a symbol string and year:

   =hf_Low_Price_Earnings_Ratio("MSFT", 2022)
   =hf_Low_Price_Earnings_Ratio("^SPX", "LY")
   =hf_Low_Price_Earnings_Ratio("@MSFT 110122C00020000", "LQ-1")
   =hf_Low_Price_Earnings_Ratio("BTCUSD:DEFAULT", "LT-1")

3. Specifying quarter requests:

   =hf_Low_Price_Earnings_Ratio("MSFT", 2022, 1)
   =hf_Low_Price_Earnings_Ratio("MSFT", 2022, 2, "TTM")

4. Using Excel date functions/text for year or quarter inputs:

   =hf_Low_Price_Earnings_Ratio("MSFT", TEXT(A1,"yyyy"), TEXT(A2,"0"))

   (Where A1 could be a formatted date, and A2 a cell containing the quarter.)

? Pro Tip: For rolling comparisons, use "LQ" (last quarter), "LY" (last year), or "LT" (last trailing twelve months).

Common Questions

1. What if my function returns “NA”?

• Check if your Symbol is valid (e.g., spelled correctly).
• Verify your subscription/license is active.
• Ensure the year or quarter input is correct.

2. Does it work with non-US stocks or crypto?

Yes. Simply provide the correct symbol in Symbol (e.g., "BTCUSD:DEFAULT" for crypto).

3. How does this function handle performance constraints?

• Data retrieval depends on API calls.
• Results are typically fast but can slow down if you make many requests simultaneously.

4. Can I compare multiple periods?

Absolutely. Copy the formula across multiple cells, adjusting the year or quarter arguments for each comparison.

?? Note: Always cross-verify essential financial metrics with multiple sources for the most accurate picture.

For more historical fundamental insights, try these related MarketXLS functions:

• Revenue (Historical)
• Cost Of Revenue (Historical)
• Gross Profit (Historical)
• R & D Expenses (Historical)
• Selling General and Administrative Expense (Historical)