P/E Ratio

The current P/E ratio of 32.5x means that investors are paying $32.50 for every $1 of the company’s annual earnings, a common gauge of how expensive the stock is relative to its profit.

Among sector peers, this is well above the sector median of 24.9x, placing SRE in the 69th percentile—more expensive than most comparable companies. Over the last eight quarters, the P/E trend is decreasing, though the most recent quarter-over-quarter change shows a +5.7% increase from 30.7x to 32.5x; the year-over-year change is not available. The combination of a high P/E (above median) with a longer-term decreasing trend suggests that while valuation remains elevated, the prior compression could reduce downside risk if earnings grow to justify the multiple. This mixed picture—expensive relative to peers but with a downward trend—supports the overall NEUTRAL verdict by offering neither a clear bargain nor an obvious overvaluation signal.

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