NXPI P/E Ratio Analysis

The current P/E ratio of 26.0x means investors are paying $26 for every $1 of the company’s annual earnings—a measure of how expensive the stock is relative to its profit.

Compared to sector peers, the sector median is 24.3x, placing NXPI at the 54th percentile—slightly above the typical peer valuation. Over the last eight quarters the trend has been decreasing, with a year-over-year change of -7.1% and a quarter-over-quarter change of +2.5% (indicating a recent uptick from the prior quarter but still lower than a year ago). The combination of a P/E slightly above the sector median and a decreasing long-term trend suggests the stock has become relatively cheaper over time, which can reduce valuation risk if earnings continue to grow. However, the recent quarter-over-quarter increase hints at a possible reversal in that decline. Overall, this metric supports the NEUTRAL verdict: the P/E is not dramatically out of line with peers, and the trend, while improving recently, does not signal a clear undervaluation or overvaluation.

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