P/E Ratio

The current P/E ratio of 12.7x means that investors are paying $12.70 for every $1.00 of Credit Acceptance’s annual earnings per share, a common measure of how expensive a stock is relative to its profits.

Compared to other companies in the Financial Services sector, this is below the sector median of 15.0x, placing the stock in the 30th percentile among its peers (meaning 70% of peers have a higher P/E). The metric shows no trend data: the year-over-year change and quarter-over-quarter change are both listed as N/A, and only a single historical reading of 12.7x is provided. A below-median P/E with no clear trend direction suggests the stock may be undervalued relative to its sector, but the absence of recent changes leaves the valuation outlook uncertain. This metric supports the overall NEUTRAL verdict because while the low P/E could indicate a buying opportunity, the lack of trend data prevents a stronger bullish or bearish conviction.

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