Understanding the Normalized Low Price-Earnings Ratio

The hf_Normalized_low_price-earnings_ratio function helps you quickly retrieve a company's normalized low Price-to-Earnings (P/E) ratio for a specific year and quarter, or over the trailing twelve months (TTM), directly within Excel. This provides a straightforward way to gauge how a stock’s earnings valuation behaves in different time frames. Using this function, you can spot potentially undervalued opportunities, compare against industry benchmarks, or discover long-term valuation trends—all without leaving your Excel workflow.

Why Use This Function?

• Streamline your valuation research: Quickly compare normalized P/E ratios for multiple stocks.
• Historical perspective: Specify a year and quarter to understand how valuation has changed over time.
• TTM option: Evaluate a stock’s recent performance over the trailing twelve months.
• Data consistency: Leverage MarketXLS data directly in Excel, ensuring up-to-date fundamental information for real US market scenarios.
• Easy integration: Combine with other Excel formulas or cell references to build comprehensive financial models and dashboards.

How to Use in Excel

Use the following syntax in an Excel cell:

=hf_Normalized_low_price-earnings_ratio(Symbol, year, [quarter], [TTM])

1. Enter the ticker symbol (e.g., "AAPL") in the first argument.
2. Specify the fiscal year (e.g., 2022) in the second argument.
3. (Optional) Provide the quarter ("1", "2", "3", or "4"). If omitted, defaults to "1".
4. (Optional) Provide a value for TTM (e.g., "TRUE", "Yes", or any non-empty input indicating TTM data usage) if you want trailing twelve months data instead of a single quarter.

By using this function with different parameter combinations, you can tailor the low P/E ratio query for your specific analysis. For example, specifying a quarter focuses on that period, whereas using the TTM parameter retrieves data across the trailing twelve months, which can result in different values for the same stock and year.

Parameters Explained

Example Usage

Basic Examples

1. Retrieve the normalized low P/E ratio for Apple in the first quarter of 2022:
   =hf_Normalized_low_price-earnings_ratio("AAPL", 2022, "1")

2. Retrieve the normalized low P/E ratio for Microsoft in the third quarter of 2021:
   =hf_Normalized_low_price-earnings_ratio("MSFT", 2021, "3")

3. Use the default quarter (which is "1") by omitting it:
   =hf_Normalized_low_price-earnings_ratio("AAPL", 2020)

Advanced Scenarios

1. Compare TTM data across multiple symbols:
   =hf_Normalized_low_price-earnings_ratio("AAPL", 2022, "1", "TTM")
   =hf_Normalized_low_price-earnings_ratio("MSFT", 2022, "2", "TTM")
   By specifying "TTM," the function retrieves trailing twelve-month data, which can differ from quarterly figures.

2. Create a comparative model for multiple stocks:

   • Enter a list of symbols in Column A.
   • In Column B, use different references to year, quarter, and TTM flags.
   • Summarize or chart the output to analyze valuation trends over time.

3. Integrate with other Excel functions:
   =IF(hf_Normalized_low_price-earnings_ratio(A2, B2, C2)="N/A", "Data Unavailable", hf_Normalized_low_price-earnings_ratio(A2, B2, C2))
   In this scenario, you can handle potential N/A outputs or missing data gracefully.

4. Trading strategy example:

   • Combine this function with a moving average or other technical indicators.
   • Build a screening tool to find stocks trading with historically low P/E ratios for a specific period or on a TTM basis.

Common Questions and Troubleshooting

• Q: What if I get an "N/A" or blank result?
  A: Ensure the Symbol, year, and quarter are correct and that the data is available. MarketXLS may return "N/A" if the underlying data is missing.
• Q: How does TTM differ from specifying a specific quarter?
  A: TTM includes the last twelve months of data, providing a more up-to-date or rolling view, whereas the quarter parameter focuses on a single fiscal period.
• Q: Can I use this function for non-US symbols?
  A: The function is primarily designed with US stock data availability in mind. You can try international symbols, but data coverage may vary.
• Q: Are historical values always accurate?
  A: Data is pulled from MarketXLS’s fundamental data sources. While MarketXLS strives for accuracy, always cross-verify critical values.

By using hf_Normalized_low_price-earnings_ratio in Excel with MarketXLS, you equip yourself with a powerful, flexible tool for analyzing and comparing normalized low P/E ratios. Its built-in quarter and TTM parameters help you dive deeper into valuation trends, providing insights that can guide well-informed investment decisions.