TSCONEUTRAL

TSCO P/E Ratio Analysis

18.2x

Updated 987h ago·SEC filings & market data

Key Takeaway

The P/E ratio is the price you pay for each dollar of a company's current earnings; at 18.2x, investors are paying $18.20 for every $1 of profit.

Sector Performance

35th percentile

TSCO

18.2x

Sector Median

22.9x

Sector Avg

34.3x

Prior Period

18.1x(Aug 2026)

→ Stable

📊

Deep Analysis

The P/E ratio is the price you pay for each dollar of a company's current earnings; at 18.2x, investors are paying $18.20 for every $1 of profit.

That level sits below the sector median of 22.9x, placing TSCO in the 35th percentile among peers, which means most comparable stocks trade at higher multiples. The multiple is increasing, rising 13.7% year-over-year from roughly 16.0x and up 0.8% quarter-over-quarter, extending an eight-quarter climb from 15.2x to the current 18.2x. A below-median valuation combined with an upward trend means the stock is becoming less inexpensive relative to its own history and its sector, compressing the potential for valuation-driven gains. The price tag remains moderate overall, so this metric does not point to either a deep discount or a stretched premium, which aligns with the neutral overall verdict.

Frequently Asked Questions

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

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.

📚

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.