P/E Ratio
Higher than 36% of Energy sector peers
Updated 71h ago
Sector Performance
36th percentileSM
13.0x
Sector Median
14.3x
Sector Avg
16.4x
Deep Analysis
The price-to-earnings (P/E) ratio compares a company's stock price to its earnings per share; a P/E of 13.0x means investors pay $13 for every $1 of SM Energy's annual earnings.
Among sector peers, the median P/E is 14.4x, placing SM Energy in the 36th percentile—lower than most peers. The year-over-year change is not available, but the quarter-over-quarter change shows a steep decline of -51.7% from 27.0x to the current 13.0x. This combination of a below-median P/E and a sharp recent drop could signal a potential value opportunity if earnings have improved, or it may reflect a market reassessment of risk. The current level offers a lower entry price relative to earnings, but the rapid contraction warrants caution. This metric supports the overall NEUTRAL verdict because the low relative valuation is balanced by the uncertainty of a volatile trend.
Frequently Asked Questions
What does the P/E Ratio tell investors about SM?
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.
How does SM's P/E Ratio compare to its sector?
SM's P/E Ratio of 13.0x compares to a Energy sector median of 14.3x, placing it in the 36th percentile.
Who are SM's closest peers by P/E Ratio?
The closest Energy peers by P/E Ratio include: EPD (14.0x), MTDR (14.6x), PXD (13.2x), SHEL (13.1x), PSX (16.0x).
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.
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13.0x
Sector Median
14.3x
Sector Avg
16.4x
How SM's P/E Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.