SCHWNEUTRAL

SCHW P/E Ratio Analysis

16.7x

Updated 107h ago·SEC filings & market data

Key Takeaway

The P/E ratio compares a company's stock price to its earnings per share, so a 16.7x price-to-earnings means investors pay $16.70 for every $1 of annual profit.

Sector Performance

30th percentile

SCHW

16.7x

Sector Median

23.1x

Sector Avg

33.8x

Prior Period

18.2x(Jul 2026)

↑ Improving

📊

Deep Analysis

The P/E ratio compares a company's stock price to its earnings per share, so a 16.7x price-to-earnings means investors pay $16.70 for every $1 of annual profit.

Relative to sector peers, this is well below the sector median of 23.4x, placing SCHW in the 29th percentile—meaning only 29% of peers have a cheaper valuation. For the trend, the year-over-year change is not available, but on a quarter-over-quarter basis the P/E fell 8.3% from 18.2x to 16.7x. The combination of a below-median valuation and a declining multiple suggests the stock has become cheaper over the recent quarter, which could signal an opportunity for value-focused investors, though it may also reflect lowered earnings expectations. This metric supports the overall NEUTRAL verdict: the lower-than-peer P/E adds a margin of safety, but the lack of a clear upward or downward trend leaves the stock in a balanced position.

Frequently Asked Questions

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

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 SCHW's closest peers by P/E Ratio?

The closest peers by P/E Ratio include: CMCSA (7.8x), EG (7.8x), CHRD (7.7x), OXY (7.4x), THC (7.3x).

📚

Learn More About P/E Ratio

DCF Valuation: How to Estimate What a Stock Is Actually Worth

Discounted Cash Flow is the most rigorous way to value a company. It's also the most misunderstood. Here's a plain-English walkthrough with a real example.

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.