PE Ratio 5 Year Average
Returns the five-year average Price-to-Earnings (P/E) ratio for a stock. This metric helps investors compare current valuations to historical norms.
Supported Symbol Formats
| Type | Format | Example |
|---|---|---|
| US Stocks | SYMBOL | AAPL, MSFT |
Usage
The 5-year average P/E ratio is useful for:
- Identifying if a stock is trading above or below its historical valuation
- Comparing companies within the same industry
- Value investing analysis
Notes
- Companies with negative earnings may show N/A
- Cyclical companies may have volatile P/E averages
- Compare to current P/E to assess relative valuation
Examples
=PERatioFiveYearAverage("AAPL")=PERatioFiveYearAverage("MSFT")=PERatioFiveYearAverage("JNJ")Symbol from cell reference
=PERatio("AAPL")/PERatioFiveYearAverage("AAPL")When to Use
- Compare current valuation to historical average
- Value investing analysis
- Identify potentially over/undervalued stocks
- Long-term investment research
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Current P/E ratio | PERatio() |
| Forward-looking P/E | forwardPE() |
| P/E adjusted for growth | PEGRatio() |
| Sector comparison | Sector-specific metrics |
Common Issues & FAQ
Q: Why am I getting N/A? A: The company may have had negative earnings during the 5-year period, making P/E calculation impossible.
Q: Why is the average very high? A: High-growth companies often trade at elevated P/E ratios. Also, periods of low earnings can inflate the ratio.
Q: How should I interpret this? A: Compare current P/E to the 5-year average. If current is higher, the stock may be overvalued relative to history; if lower, it may be undervalued.
Get Access to 1 Billion Usable Market data points IN YOUR EXCEL SHEETS WITH EASY TO USE EXCEL FUNCTIONS
Get started today
▶
How does MarketXLS work?