HOOD PE Ratio 2026
Robinhood Markets Inc Price to Earnings Analysis
Current P/E Ratio
44.27
Stock Price
$90.75
EPS (TTM)
$2.05
Valuation
Overvalued
PE Ratio Breakdown
Trailing P/E (TTM)
44.27
Based on last 12 months earnings
Financials Industry Avg
20.00
HOOD is 121% above industry
What Does HOOD P/E Ratio Mean?
Current Valuation
At a P/E ratio of 44.27, investors are paying $44.27 for every $1 of HOOD's annual earnings. This high P/E suggests investors expect strong future earnings growth or that the stock is trading at a premium.
Industry Comparison
Compared to the Financials industry average P/E of 20, HOOD is trading at a premium. This could be justified by superior growth, profitability, or competitive position.
PE Ratio Calculator
How P/E ratio changes with different stock prices:
At $72.60
P/E: 35.41
20% lower
At $81.67
P/E: 39.84
10% lower
At $99.83
P/E: 48.70
10% higher
At $108.90
P/E: 53.12
20% higher
Get Complete HOOD Valuation Analysis
DCF model, comparable companies, and AI-powered insights
Frequently Asked Questions
What is HOOD PE ratio?
HOOD (Robinhood Markets Inc) has a price-to-earnings (P/E) ratio of 44.27. This means investors are paying $44.27 for every $1 of HOOD's annual earnings. The P/E ratio is a key valuation metric used to assess whether a stock is overvalued or undervalued relative to its earnings.
What is a good PE ratio?
A "good" P/E ratio depends on the industry and growth prospects. Generally, a P/E ratio between 15-25 is considered reasonable for mature companies. Growth stocks often trade at higher P/E ratios (30-50+) due to expected future earnings growth. Value stocks typically have lower P/E ratios (below 15). Compare HOOD's P/E of 44.27 to its industry average and historical range.
Is HOOD overvalued based on PE ratio?
HOOD's P/E ratio of 44.27 is above the Financials industry average of approximately 20. This suggests the stock may be trading at a premium, though high P/E ratios can be justified by strong growth prospects.
What is the difference between forward and trailing PE ratio?
The trailing P/E ratio uses earnings from the past 12 months (historical data), while the forward P/E ratio uses projected earnings for the next 12 months (future estimates). HOOD's trailing P/E is 44.27. Forward P/E is often more useful for growth companies as it reflects expected future performance.
How do you calculate PE ratio?
P/E ratio is calculated by dividing the stock price by earnings per share (EPS). Formula: P/E = Stock Price / EPS. For HOOD, with a current price of $90.75 and EPS of $2.05, the P/E ratio is 44.27. A higher P/E means investors pay more per dollar of earnings.
What is PEG ratio and how does it relate to PE?
The PEG ratio adjusts P/E for growth. PEG = P/E / Earnings Growth Rate. A PEG below 1.0 typically indicates good value. Calculate HOOD's PEG ratio when earnings growth data is available.