The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-05-07), Covidien's share price is
€94.50.
Covidien's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2014 was €2.98. Therefore, Covidien's PE Ratio (TTM) for today is 31.75.
The historical rank and industry rank for Covidien's PE Ratio (TTM) or its related term are showing as below:
FRA:6COP'
s PE Ratio (TTM) Range Over the Past 10 Years
Min: 10.07 Med: 15.16 Max: 31.71
Current: 31.71
During the past 13 years, the highest PE Ratio (TTM) of Covidien was 31.71. The lowest was 10.07. And the median was 15.16.
FRA:6COP's PE Ratio (TTM) is not ranked
in the Medical Devices & Instruments industry.
Industry Median: 30
vs FRA:6COP: 31.71
As of today (2024-05-07), Covidien's share price is €94.50.
Covidien's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2014 was €2.98. Therefore, Covidien's PE Ratio without NRI for today is 31.72.
During the past 13 years, Covidien's highestPE Ratio without NRI was 31.71. The lowest was 9.85. And the median was 14.91.
Covidien's EPS without NRI for the
three
months ended in Dec. 2014 was €0.91.
Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2014 was €2.98.
During the past 12 months, Covidien's average EPS without NRIGrowth Rate was 17.50% per year.
During the past 3 years, the average EPS without NRIGrowth Rate was -1.20% per year.
During the past 5 years, the average EPS without NRIGrowth Rate was 2.20% per year.
During the past 13 years, Covidien's highest 3-Year average EPS without NRI Growth Rate was 21.90% per year. The lowest was 0.00% per year. And the median was 5.35% per year.
Covidien's EPS (Basic) for the
three
months ended in Dec. 2014 was €0.92.
Its EPS (Basic) for the trailing twelve months (TTM) ended in Dec. 2014 was €3.01.
Covidien PE Ratio (TTM) Historical Data
The historical data trend for Covidien's PE Ratio (TTM) can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Covidien's PE Ratio (TTM)
For the Medical Instruments & Supplies subindustry, Covidien's PE Ratio (TTM), along with its competitors' market caps and PE Ratio (TTM) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Covidien's PE Ratio (TTM) Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Covidien's PE Ratio (TTM) distribution charts can be found below:
* The bar in red indicates where Covidien's PE Ratio (TTM) falls into.
Covidien PE Ratio (TTM) Calculation
The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.
Covidien's PE Ratio (TTM) for today is calculated as
Covidien's Share Price of today is €94.50.
Covidien's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was €2.98.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
It can also be calculated from the numbers for the whole company:
There are at least three kinds of PE Ratio (TTM)s used by different investors. They are Trailing Twelve Month PE Ratio (TTM) or PE Ratio (TTM) (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio (TTM) based on inflation-adjusted normalized PE Ratio (TTM) is called Shiller PE Ratio, after Yale professor Robert Shiller.
In the calculation of PE Ratio (TTM), the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.
Covidien (FRA:6COP) PE Ratio (TTM) Explanation
The PE Ratio (TTM) can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio (TTM) is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.
In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio (TTM) is positive. Also for stocks with the same PE Ratio (TTM), the one with faster growth business is more attractive.
If a company loses money, the PE Ratio (TTM) becomes meaningless.
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio (TTM) divided by the growth ratio. He thinks a company with a PE Ratio (TTM) equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio (TTM) of 20, instead of a company growing 10% a year with a PE Ratio (TTM) of 10.
Because the PE Ratio (TTM) measures how long it takes to earn back the price you pay, the PE Ratio (TTM) can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.
Investors need to be aware that the PE Ratio (TTM) can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratio (TTM)s are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio (TTM) is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .
PE Ratio (TTM) can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio (TTM).
Covidien PE Ratio (TTM) Related Terms
Thank you for viewing the detailed overview of Covidien's PE Ratio (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.
Covidien PLC formerly known as Covidien Ltd. was incorporated in Bermuda in 2000 as a wholly-owned subsidiary of Tyco International Ltd. In June 2009, Covidien plc announced that one of its subsidiaries has completed the acquisition of VNUS Medical Technologies, Inc. In September 2009, the Company completed the acquisition of Power Medical Interventions Inc. In November 2009, the Company completed the acquisition of Aspect Medical Systems Inc. The Company is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. Its products are found in almost every hospital in the United States. Its mission is to create and deliver innovative healthcare solutions, developed in ethical collaboration with medical professionals. It operates through two segments: Medical Devices and Medical Supplies. The Medical Devices segment includes the development, manufacture and sale of endomechanical instruments, energy devices, soft tissue repair products, vascular products, oximetry and monitoring products, airway and ventilation products, and other medical products. The Medical Supplies segment includes the development, manufacture and sale of nursing care products, medical surgical products, SharpSafety products and original equipment manufacturer products. Competitors of Medical Devices segment include diversified healthcare companies, such as Johnson & Johnson, Boston Scientific, Baxter and C.R. Bard. Its Nursing Care products include: Curity and Kerlix and Medical Surgical products include: Medi-Trace. The Company holds more than 13,000 patents and have over 10,500 patent applications pending in the United States and in certain other countries that relate to aspects of the technology used in many of its products. The Company is subject to numerous federal, state and local environmental protection and health and safety laws and regulations both within and outside the United States.
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