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SCHW (Charles Schwab) PE Ratio (TTM) : 28.08 (As of Oct. 29, 2024)


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What is Charles Schwab 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), Charles Schwab's share price is $71.89. Charles Schwab's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 was $2.56. Therefore, Charles Schwab's PE Ratio (TTM) for today is 28.08.


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

SCHW' s PE Ratio (TTM) Range Over the Past 10 Years
Min: 11.52   Med: 26.35   Max: 36.49
Current: 28.08


During the past 13 years, the highest PE Ratio (TTM) of Charles Schwab was 36.49. The lowest was 11.52. And the median was 26.35.


SCHW's PE Ratio (TTM) is ranked worse than
66.67% of 588 companies
in the Capital Markets industry
Industry Median: 18.435 vs SCHW: 28.08

Charles Schwab's Earnings per Share (Diluted) for the three months ended in Jun. 2024 was $0.66. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 was $2.56.

As of today (2024-10-29), Charles Schwab's share price is $71.89. Charles Schwab's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 was $2.92. Therefore, Charles Schwab's PE Ratio without NRI for today is 24.62.

During the past 13 years, Charles Schwab's highest PE Ratio without NRI was 36.49. The lowest was 11.43. And the median was 24.92.

Charles Schwab's EPS without NRI for the three months ended in Jun. 2024 was $0.73. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 was $2.92.

During the past 12 months, Charles Schwab's average EPS without NRI Growth Rate was -24.20% per year. During the past 3 years, the average EPS without NRI Growth Rate was 8.50% per year. During the past 5 years, the average EPS without NRI Growth Rate was 7.70% per year. During the past 10 years, the average EPS without NRI Growth Rate was 17.60% per year.

During the past 13 years, Charles Schwab's highest 3-Year average EPS without NRI Growth Rate was 115.40% per year. The lowest was -16.80% per year. And the median was 16.95% per year.

Charles Schwab's EPS (Basic) for the three months ended in Jun. 2024 was $0.66. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2024 was $2.57.


Charles Schwab PE Ratio (TTM) Historical Data

The historical data trend for Charles Schwab'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.

Charles Schwab PE Ratio (TTM) Chart

Charles Schwab 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 17.81 25.02 29.72 23.79 27.09

Charles Schwab 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 18.30 27.09 30.27 30.58 At Loss

Competitive Comparison of Charles Schwab's PE Ratio (TTM)

For the Capital Markets subindustry, Charles Schwab'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.


Charles Schwab's PE Ratio (TTM) Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Charles Schwab's PE Ratio (TTM) distribution charts can be found below:

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



Charles Schwab 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.

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

PE Ratio (TTM)=Share Price/Earnings per Share (Diluted) (TTM)
=71.89/2.560
=28.08

Charles Schwab's Share Price of today is $71.89.
Charles Schwab'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 $2.56.

* 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.


Charles Schwab  (NYSE:SCHW) 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).


Charles Schwab PE Ratio (TTM) Related Terms

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Charles Schwab Business Description

Address
3000 Schwab Way, Westlake, TX, USA, 76262
Charles Schwab operates in brokerage, wealth management, banking, and asset management. It runs a large network of brick-and-mortar brokerage branch offices and a well-established online investing website, and it has mobile trading capabilities. It also operates a bank and a proprietary asset-management business and offers services to independent investment advisors. Schwab is among the largest firms in the investment business, with over $8 trillion of client assets at the end of December 2023. Nearly all of its revenue is from the United States.
Executives
Carolyn Schwab-pomerantz director 3000 SCHWAB WAY, WESTLAKE TX 76262
Charles R. Schwab director, officer: Co-Chairman PO BOX 2226, PALM BEACH FL 33480
Richard A Wurster officer: President 3000 SCHWAB WAY, WESTLAKE TX 76262
Walter W Bettinger officer: EVP/COO - Individual Investor 211 MAIN STREET, SAN FRANCISCO CA 94105
Bernard J. Clark officer: MD, Head of Adivsor Services C/O THE CHARLES SCHWAB CORPORATION, 211 MAIN STREET, SAN FRANCISCO CA 94105
Peter B. Crawford officer: CFO 211 MAIN STREET, SAN FRANCISCO CA 94105
Stephen A Ellis director C/O THE CHARLES SCHWAB CORPORATION, 211 MAIN STREET, SAN FRANCISCO CA 94105
Morgan Peter J. Iii officer: General Counsel 211 MAIN STREET, SAN FRANCISCO CA 94105
Nigel J Murtagh officer: MD, EVP - Corporate Risk C/O THE CHARLES SCHWAB CORPORATION, 211 MAIN STREET, SAN FRANCISCO CA 94105
Arun Sarin director C/O SAFEWAY INC., 5918 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Joseph R Martinetto officer: MD and COO 211 MAIN STREET, SAN FRANCISCO CA 94105
Mark A Goldfarb director C/O THE CHARLES SCHWAB CORPORATION, 211 MAIN STREET, SAN FRANCISCO CA 94105
Adams John K Jr director 300 CONTINENTAL DRIVE, NEWARK DE 19713
Jonathan M. Craig officer: Please see remarks 3000 SCHWAB WAY, WESTLAKE TX 76262
Frank C Herringer director