ALLYNEUTRAL

ALLY P/E Ratio Analysis

10.1x

Higher than 23% of Financial Services sector peers

Updated 2556h ago·SEC filings & market data

Key Takeaway

The P/E ratio of 10.1x means investors are paying $10.10 for every $1 of Ally Financial’s annual earnings — a measure of how cheap or expensive the stock is relative to its profits.

Sector Performance

23th percentile

ALLY

10.1x

Sector Median

13.2x

Sector Avg

19.3x

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Deep Analysis

The P/E ratio of 10.1x means investors are paying $10.10 for every $1 of Ally Financial’s annual earnings — a measure of how cheap or expensive the stock is relative to its profits.

This is well below the Financial Services sector median of 14.4x, placing Ally in the 17th percentile among its peers, meaning 83% of sector stocks trade at higher multiples. Trend data is not available: the year-over-year change and quarter-over-quarter change are both listed as N/A, and the only historical value provided is the current 10.1x, so no direction can be assessed. The absence of trend data limits risk analysis, but the low multiple relative to the sector suggests the stock may be undervalued if earnings hold steady — an opportunity for value-seeking investors, but also a potential risk if underlying earnings are deteriorating. The NEUTRAL verdict is neither strongly supported nor contradicted by this P/E alone: the low level signals possible upside, yet without trend context and given the neutral overall stance, caution remains warranted.

Frequently Asked Questions

What does the P/E Ratio tell investors about ALLY?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does ALLY's P/E Ratio compare to its sector?

ALLY's P/E Ratio of 10.1x compares to a Financial Services sector median of 13.2x, placing it in the 23th percentile.

Who are ALLY's closest peers by P/E Ratio?

The closest Financial Services peers by P/E Ratio include: PFG (13.2x), AFL (12.9x), HSBC (12.8x), AIG (13.7x), RJF (12.7x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.