PE Ratio (TTM) Formula in Excel

Understanding PE Ratio (TTM)

The PE Ratio (TTM) measures a company's price-to-earnings value using its trailing twelve months (TTM) earnings. By applying the PERatio function in Excel (with MarketXLS), you can:

• Analyze a stock's recent profitability.
• Compare valuation levels across different companies.
• Make more informed investment decisions.

? Pro Tip: Use the PE Ratio (TTM) to identify potential undervalued or overvalued stocks quickly.

Syntax and Parameters

=PERatio(Symbol)

Return Value:
• Returns a numeric value representing the PE Ratio (TTM).
• Returns "NA" if the symbol is invalid or if the MarketXLS license is not active.

?? Note: Network issues or invalid parameters may lead to slower performance or a returned value of "NA".

Examples and Usage

Below are common scenarios showing how you can leverage the PE Ratio (TTM) in Excel.

1. Basic Example

   =PERatio("MSFT")

   Retrieves the PE Ratio for Microsoft (MSFT).

2. Referencing a Cell for Symbol
   Enter a symbol (e.g., MSFT) in cell A1 and use:

   =PERatio(A1)

3. Using an Index Symbol

   =PERatio("^SPX")

   Checks the PE Ratio for the S&P 500 Index.

4. Options and Crypto

   • Options contract:

     =PERatio("@MSFT 110122C00020000")

   • Cryptocurrency:

     =PERatio("BTCUSD:DEFAULT")

? Pro Tip: Combine the PERatio function with other MarketXLS functions (like EPS or SharesOutstanding) to gain deeper insights into a company’s fundamentals.

Common Questions

1. Why do I see “NA” instead of a ratio?

   • Ensure you have a valid MarketXLS subscription and have entered a correct ticker symbol. An invalid or unsupported symbol may result in “NA.”

2. Can I use this function with historical data or specific dates?

   • This function references the trailing twelve months (TTM) and does not use a separate date parameter. Historical date inputs are not applicable.

3. Are there performance considerations?

   • The function fetches live or recent data from external APIs. Inconsistent internet connections or heavy Excel workbooks may slightly impact performance.

4. What if I want other valuation metrics?

   • MarketXLS offers other functions like MarketCap or EPS for comprehensive fundamental analysis.

?? Note: Always cross-check the ratio with other fundamental indicators to confirm your valuation conclusions.