Calculate the Normalized Low P/E Ratio for Stocks

The hf_normalized_low_price_earnings_ratio function makes it easy to retrieve a stock’s normalized low price-to-earnings (P/E) ratio for a specific quarter, year, or trailing twelve months (TTM), all within Excel. This fundamental metric offers insights into a company’s profitability relative to its share price, adjusted to smooth out short-term fluctuations.

Why Use This Function?

• Helps evaluate a stock’s adjusted or "normalized" lower-end P/E over a chosen reporting period.
• Allows comparison across different time frames—quarterly, annually, or TTM (trailing twelve months).
• Useful for screening undervalued stocks or identifying potential dips in a company’s valuation relative to earnings.
• Integrates seamlessly into Excel workflows for deeper fundamental analysis.
• Ideal for investors seeking a more conservative viewpoint on valuations by focusing on a “low” point in P/E over the chosen period.

How to Use in Excel

Simply type the function into any Excel cell with the appropriate parameters:

=hf_normalized_low_price_earnings_ratio(Symbol, Year, Quarter, [TTM])

• Symbol is typically a stock ticker, such as "AAPL".
• Year is the fiscal or calendar year for which you want data (e.g., 2022).
• Quarter is the corresponding quarter of the year (1, 2, 3, or 4). This function defaults to 1 if omitted, but if you explicitly pass an empty string, it will set quarter to "2" internally.
• TTM is an optional parameter; if set to "TTM", the function will fetch data for the trailing 12 months instead of a single quarter or year.

MarketXLS makes a secure web request to retrieve the data. If the data isn’t available or your subscription doesn’t cover it, the function will return "NA".

Parameters Explained

Example Usage

Below are examples demonstrating how to call the function, along with potential results and use cases.

Basic Examples

1. Retrieve the current quarter’s normalized low P/E for Apple in 2022:
   =hf_normalized_low_price_earnings_ratio("AAPL", 2022, 1)
   • Returns the Normalized Low P/E ratio for Apple’s first quarter of 2022 if available.

2. Fetch the second quarter data for Microsoft in 2021:
   =hf_normalized_low_price_earnings_ratio("MSFT", 2021, 2)
   • Particularly useful if you want to compare year-over-year Q2 valuation.

3. Use TTM for Tesla (symbol "TSLA") in 2022, ignoring quarters:
   =hf_normalized_low_price_earnings_ratio("TSLA", 2022, 1, "TTM")
   • This fetches the trailing 12 months data ending around Q1 2022, delivering a more averaged-out perspective.

Advanced Scenarios

1. Dynamic Screening in Excel:

   • Combine hf_normalized_low_price_earnings_ratio with conditional formulas (e.g., IF) to highlight stocks that have a low normalized P/E below a certain threshold.
   • Example: =IF(hf_normalized_low_price_earnings_ratio($A2, $B2, $C2) < 15, "Potentially Undervalued", "Watch List")

2. Yearly Comparison:

   • Quickly compare the normalized low P/E ratio for a range of years by referencing dynamic cells for the Year parameter and matching them to your Quarter or TTM setting.

3. Combine with Other MarketXLS Ratios:

   • Generate a more comprehensive valuation view by retrieving normalized low P/E ratio alongside other metrics like Price-to-Book or EV/EBITDA.

4. Data Driven Charting:

   • Plot the hf_normalized_low_price_earnings_ratio over sequential quarters or rolling TTM data to visualize how the ratio shifts over time.

Common Questions and Troubleshooting

• Why am I getting "NA"?

• The symbol may be invalid or unsupported.
• Fundamental data might not be available for the specified period.
• Your current MarketXLS subscription tier may not include this data.

• How does TTM differ from specifying a Quarter?

• "TTM" retrieves data aggregated over the last four quarters, whereas passing a specific quarter focuses on just that quarter’s normalized low P/E ratio.

• Can I leave Quarter or Year blank?

• If Quarter is omitted, it defaults to 1. If you explicitly pass an empty string (""), it sets Quarter to 2 internally. Always specify a valid Year parameter.

• Does this function work for all stocks?

• The function primarily supports US equities. Some international equities might be supported, but data availability can vary.

By using hf_normalized_low_price_earnings_ratio in Excel with MarketXLS, you can seamlessly analyze how a stock’s lower-end valuation compares to its earnings, giving you a clearer view when screening for potentially undervalued opportunities. It cuts down on manual data gathering, accelerates decision-making, and integrates neatly into your broader financial models for more robust analysis.