GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Radian Group Inc (NYSE:RDN) » Definitions » PE Ratio (TTM)

RDN (Radian Group) PE Ratio (TTM) : 9.07 (As of Oct. 31, 2024)


View and export this data going back to 1992. Start your Free Trial

What is Radian Group PE Ratio (TTM)?

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 (2024-10-31), Radian Group's share price is $34.91. Radian Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 was $3.85. Therefore, Radian Group's PE Ratio (TTM) for today is 9.07.


The historical rank and industry rank for Radian Group's PE Ratio (TTM) or its related term are showing as below:

RDN' s PE Ratio (TTM) Range Over the Past 10 Years
Min: 3.15   Med: 7.86   Max: 42.94
Current: 9.07


During the past 13 years, the highest PE Ratio (TTM) of Radian Group was 42.94. The lowest was 3.15. And the median was 7.86.


RDN's PE Ratio (TTM) is ranked better than
64.93% of 422 companies
in the Insurance industry
Industry Median: 11.47 vs RDN: 9.07

Radian Group's Earnings per Share (Diluted) for the three months ended in Jun. 2024 was $0.98. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 was $3.85.

As of today (2024-10-31), Radian Group's share price is $34.91. Radian Group's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 was $4.02. Therefore, Radian Group's PE Ratio without NRI for today is 8.68.

During the past 13 years, Radian Group's highest PE Ratio without NRI was 15.43. The lowest was 2.80. And the median was 7.72.

Radian Group's EPS without NRI for the three months ended in Jun. 2024 was $0.99. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 was $4.02.

During the past 12 months, Radian Group's average EPS without NRI Growth Rate was -5.40% per year. During the past 3 years, the average EPS without NRI Growth Rate was 30.60% per year. During the past 5 years, the average EPS without NRI Growth Rate was 11.10% per year.

During the past 13 years, Radian Group's highest 3-Year average EPS without NRI Growth Rate was 91.40% per year. The lowest was -30.60% per year. And the median was 20.90% per year.

Radian Group's EPS (Basic) for the three months ended in Jun. 2024 was $0.99. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2024 was $3.89.


Radian Group PE Ratio (TTM) Historical Data

The historical data trend for Radian Group'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.

* Premium members only.

Radian Group PE Ratio (TTM) Chart

Radian Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PE Ratio (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.86 10.13 6.69 4.38 7.57

Radian Group Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
PE Ratio (TTM) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.17 6.47 7.57 8.85 8.08

Competitive Comparison of Radian Group's PE Ratio (TTM)

For the Insurance - Specialty subindustry, Radian Group'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.


Radian Group's PE Ratio (TTM) Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Radian Group's PE Ratio (TTM) distribution charts can be found below:

* The bar in red indicates where Radian Group's PE Ratio (TTM) falls into.



Radian Group 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.

Radian Group's PE Ratio (TTM) for today is calculated as

PE Ratio (TTM)=Share Price/Earnings per Share (Diluted) (TTM)
=34.91/3.850
=9.07

Radian Group's Share Price of today is $34.91.
Radian Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $3.85.

* 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:

PE Ratio (TTM)=Market Cap /Net Income

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.


Radian Group  (NYSE:RDN) 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.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio (TTM) measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

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).


Radian Group PE Ratio (TTM) Related Terms

Thank you for viewing the detailed overview of Radian Group's PE Ratio (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Radian Group Business Description

Traded in Other Exchanges
N/A
Address
550 East Swedesford Road, Suite 350, Wayne, PA, USA, 19087
Radian Group Inc provides mortgage insurance and services to the real estate and mortgage finance industries. Radian's mortgage insurance provides coverage to lending institutions throughout the United States. Its services include analytics and consulting for buyers and sellers of, and investors in, mortgage- and real estate-related loans and securities and other asset-backed securities. Insurance premiums account for more than three fourths of the company's revenue. Services revenue and investment income are the other principal sources of revenue. It operates in two segments: Mortgage and homegenius. The Mortgage segment earns the majority of revenue.
Executives
Derek Brummer officer: Chief Risk Officer RADIAN GROUP INC., 1601 MARKET ST, PHILADELPHIA PA 19103
Mary Dickerson officer: EVP Chief People Officer RADIAN GROUP INC., 1500 MARKET ST., #2050W, PHILADELPHIA PA 19102
Robert Quigley officer: Sr. Vice President, Controller C/O RADIAN,, 1500 MARKET ST., #2050W, PHILADELPHIA PA 19102
Eric Ray officer: Sr, Executive Vice President C/O RADIAN, 1500 MARKET ST., #2050W, PHILADELPHIA PA 19102
Edward J Hoffman officer: SVP, Secretary and General Cou 1601 MARKET STREET, PHILADELPHIA PA 19103
Sumita Pandit officer: Sr. EVP, Chief Growth Officer 550 EAST SWEDESFORD RD., #350, WAYNE PA 19087
Noel Joseph Spiegel director RADIAN GROUP INC., 1601 MARKET STREET, PHILADELPHIA PA 19103
Brien Mcmahon officer: EVP & Chief Franchise Officer 1500 MARKET ST., WEST TOWER, #2050, PHILADELPHIA PA 19102
Lisa Mumford director 6 BEACHWOOD COURT, DIX HILLS NY 11746
Gregory Serio director RADIAN GROUP INC., 1601 MARKET ST., PHILADELPHIA PA 19103
Howard Bernard Culang director 9 MARISSA COURT, ATLANTIC HIGHLANDS NJ 07716
Lisa Hess director RADIAN GROUP, 1601 MARKET ST, PHILADELPHIA PA 19103
Margaret Anne Leyden director 550 E. SWEDESFORD RD.,, STE 350, WAYNE PA 19087
Fawad Ahmad director C/) RADIAN GROUP INC., 550 E. SWEDESFORD RD., #350, WAYNE PA 19087
Richard G Thornberry director, officer: Chief Executive Officer RADIAN, 1601 MARKET ST, PHILADELPHIA PA 19103