SMNEUTRAL

SM P/E Ratio Analysis

5.1x

Updated 35h ago·SEC filings & market data

Key Takeaway

The P/E ratio measures stock price divided by earnings per share, so a 5.1x value means investors pay $5.10 for every $1 of current annual earnings.

Sector Performance

2th percentile

5.1x

Sector Median

23.1x

Sector Avg

33.8x

Prior Period

11.0x(Jul 2026)

↑ Improving

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Deep Analysis

The P/E ratio measures stock price divided by earnings per share, so a 5.1x value means investors pay $5.10 for every $1 of current annual earnings.

Your stock trades far below the sector median of 23.4x, placing it in the 1th percentile of peers, meaning nearly all sector companies carry higher valuations. The year-over-year change is N/A, but the quarter-over-quarter change is -53.3%, with the ratio falling from 11.0x to 5.1x in the latest period. A low P/E can signal a cheap entry point, but a sharp quarterly drop may also reflect deteriorating earnings or a bearish market repricing. That combination creates both a potential value opportunity and a risk that the lower earnings base is not yet stable. This metric does not contradict the overall NEUTRAL verdict; the extreme discount and negative momentum balance each other out, supporting a cautious stance.

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.

Who are SM'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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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.