FANGNEUTRAL

FANG P/E Ratio Analysis

293.5x

Updated 297h ago·SEC filings & market data

Key Takeaway

A P/E ratio of 293.5x means investors pay $293.50 for every $1 of the company's trailing earnings, a high price that already prices in strong future growth.

Sector Performance

100th percentile

FANG

293.5x

Sector Median

23.1x

Sector Avg

33.7x

Prior Period

218.8x(Aug 2026)

↓ Declining

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Deep Analysis

A P/E ratio of 293.5x means investors pay $293.50 for every $1 of the company's trailing earnings, a high price that already prices in strong future growth.

That level is far above the sector median of 23.4x, placing FANG at the 100th percentile among peer stocks. The trend direction over the last eight quarters is N/A, with no year-over-year comparison available, but the ratio rose 34.1% quarter over quarter, climbing from 218.8x to 293.5x. The combination of an extreme valuation and a sharp quarterly increase suggests heightened risk, as any earnings miss could trigger a large downside re-rating, while the upside requires flawless execution. This metric contradicts the overall NEUTRAL verdict because a P/E at nearly 13 times the sector median and rising quickly leans toward overvaluation, not balanced neutrality. However, the verdict remains neutral, implying other factors offset this valuation pressure to some degree.

Frequently Asked Questions

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

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.

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

The closest peers by P/E Ratio include: BROS (99.7x), WELL (102.4x), IAC (104.9x), FORM (108.1x), MCHP (113.5x).

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Learn More About P/E Ratio

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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.