SLMNEUTRAL

SLM P/E Ratio Analysis

7.2x

Updated 83h ago·SEC filings & market data

Key Takeaway

The current P/E ratio of 7.2x means investors pay $7.20 for every $1 of the company's annual earnings, a measure of how expensive the stock is relative to its profitability.

Sector Performance

3th percentile

SLM

7.2x

Sector Median

23.1x

Sector Avg

33.8x

Prior Period

7.1x(Jul 2026)

→ Stable

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Deep Analysis

The current P/E ratio of 7.2x means investors pay $7.20 for every $1 of the company's annual earnings, a measure of how expensive the stock is relative to its profitability.

For context, the sector median P/E is 23.4x, and SLM sits at the 3th percentile among sector peers, meaning it is cheaper than roughly 97% of similar companies. The year-over-year change in this metric is N/A, while the quarter-over-quarter change shows a modest +0.8% from 7.1x to 7.2x; the 8-quarter trend direction is also N/A. The low absolute level combined with limited recent movement suggests the stock carries a value-oriented profile, but the lack of a clear trend means no momentum is confirmed. This low P/E could represent a margin of safety, yet it may also reflect market concerns about earnings quality or growth. This metric supports the overall NEUTRAL verdict: the cheap valuation is a positive offset, but without a trend or sector context beyond the percentile, it does not justify a bullish or bearish tilt.

Frequently Asked Questions

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

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 SLM's closest peers by P/E Ratio?

The closest peers by P/E Ratio include: RUN (7.9x), CMCSA (7.8x), EG (7.8x), CHRD (7.7x), OXY (7.4x).

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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.