PE Band

How to read the PE band — is this stock cheap or expensive?

The PE band chart uses this stock's own historical PE distribution to draw five lines — the 10th/25th/50th/75th/90th percentiles of past PE ratios, each multiplied by trailing-twelve-month EPS. A price near the bottom line means the current PE is cheaper than most of this stock's own history; near the top means more expensive. This compares the stock to its own past, not to peers or the market, and estimates are less reliable when fewer than four quarters of recent earnings are available.