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F5 (FFIV) PE Ratio (TTM) : 25.15 (As of Oct. 29, 2024)


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What is F5 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 (2024-10-29), F5's share price is $240.39. F5's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 was $9.56. Therefore, F5's PE Ratio (TTM) for today is 25.15.


The historical rank and industry rank for F5's PE Ratio (TTM) or its related term are showing as below:

FFIV' s PE Ratio (TTM) Range Over the Past 10 Years
Min: 15.29   Med: 24.47   Max: 46.81
Current: 25.81


During the past 13 years, the highest PE Ratio (TTM) of F5 was 46.81. The lowest was 15.29. And the median was 24.47.


FFIV's PE Ratio (TTM) is ranked better than
55.06% of 1560 companies
in the Software industry
Industry Median: 26.13 vs FFIV: 25.81

F5's Earnings per Share (Diluted) for the three months ended in Sep. 2024 was $2.80. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 was $9.56.

As of today (2024-10-29), F5's share price is $240.39. F5's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2024 was $13.37. Therefore, F5's PE Ratio without NRI for today is 17.98.

During the past 13 years, F5's highest PE Ratio without NRI was 37.17. The lowest was 12.69. And the median was 21.23.

F5's EPS without NRI for the three months ended in Sep. 2024 was $3.67. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2024 was $13.37.

During the past 12 months, F5's average EPS without NRI Growth Rate was 55.70% per year. During the past 3 years, the average EPS without NRI Growth Rate was 31.80% per year. During the past 5 years, the average EPS without NRI Growth Rate was 4.10% per year. During the past 10 years, the average EPS without NRI Growth Rate was 6.80% per year.

During the past 13 years, F5's highest 3-Year average EPS without NRI Growth Rate was 188.40% per year. The lowest was -61.20% per year. And the median was 14.50% per year.

F5's EPS (Basic) for the three months ended in Sep. 2024 was $2.83. Its EPS (Basic) for the trailing twelve months (TTM) ended in Sep. 2024 was $9.65.


F5 PE Ratio (TTM) Historical Data

The historical data trend for F5'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.

F5 PE Ratio (TTM) Chart

F5 Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
PE Ratio (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.50 37.22 27.46 24.60 23.06

F5 Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 24.60 23.27 22.71 18.50 At Loss

Competitive Comparison of F5's PE Ratio (TTM)

For the Software - Infrastructure subindustry, F5'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.


F5's PE Ratio (TTM) Distribution in the Software Industry

For the Software industry and Technology sector, F5's PE Ratio (TTM) distribution charts can be found below:

* The bar in red indicates where F5's PE Ratio (TTM) falls into.



F5 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.

F5's PE Ratio (TTM) for today is calculated as

PE Ratio (TTM)=Share Price/Earnings per Share (Diluted) (TTM)
=240.39/9.560
=25.15

F5's Share Price of today is $240.39.
F5's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $9.56.

* 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.


F5  (NAS:FFIV) 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).


F5 PE Ratio (TTM) Related Terms

Thank you for viewing the detailed overview of F5's PE Ratio (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


F5 Business Description

Traded in Other Exchanges
Address
801 5th Avenue, Seattle, WA, USA, 98104
F5 is a market leader in the application delivery controller market. The company sells products for security, application performance, and automation. Its three customer verticals are enterprises, service providers, and government entities. Revenue is evenly split between its services business and products business with revenue trending toward products due to software adoption. The Seattle-based firm was incorporated in 1996, has about 6,500 employees, and generates about 55% its revenue within the Americas, 25% in EMEA, and 20% in APAC/Japan.
Executives
Francis J. Pelzer officer: EVP, Chief Financial Officer CONCUR TECHNOLOGIES, INC., 18400 NE UNION HILL RD., REDMOND WA 98052
Alan Higginson director
Francois Locoh-donou director, officer: President, CEO & Director C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. W., SEATTLE WA 98119
Chad Michael Whalen officer: EVP, Worldwide Sales C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. WEST, SEATTLE WA 98119
Thomas Dean Fountain officer: EVP and Chief Strategy Officer C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. WEST, SEATTLE WA 98119
Scot Frazier Rogers officer: Interim General Counsel C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. WEST, SEATTLE WA 98119
Michael L Dreyer director C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. WEST, SEATTLE WA 98119
Tami A. Erwin director 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Ana Maria White officer: EVP and Chief HR Officer C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. WEST, SEATTLE WA 98119
Mika Yamamoto officer: EVP, Chief Marketing Officer 21300 VICTORY BLVD.,, 12TH FLOOR, WOODLAND HILLS CA 91367
Geng Lin officer: EVP, Chief Technology Officer C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. WEST, SEATTLE WA 98119
Marianne Budnik director C/O ACME PACKET, INC., 100 CROSBY DRIVE, BEDFORD MA 01730
Phillips James Malcolm Jr director C/O F5, INC., 801 FIFTH AVE., SEATTLE WA 98104
Michael F Montoya director C/O F5 NETWORKS, INC., 801 FIFTH AVE., SEATTLE WA 98104
Deborah L Bevier director PO BOX 91258, BELLEVUE WA 98009