SCHW PE Ratio 2026
Charles Schwab Corp Price to Earnings Analysis
Current P/E Ratio
18.79
Stock Price
$102.38
Valuation
Fair Value
PE Ratio Breakdown
Trailing P/E (TTM)
18.79
Based on last 12 months earnings
Financial Services Industry Avg
20.00
SCHW is 6% below industry
What Does SCHW P/E Ratio Mean?
Current Valuation
At a P/E ratio of 18.79, investors are paying $18.79 for every $1 of SCHW's annual earnings. This moderate P/E is typical for established companies with steady earnings.
Industry Comparison
Compared to the Financial Services industry average P/E of 20, SCHW is trading at a discount. This discount may present a value opportunity or could reflect higher risk or slower growth.
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Frequently Asked Questions
What is SCHW PE ratio?
SCHW (Charles Schwab Corp) has a price-to-earnings (P/E) ratio of 18.79. This means investors are paying $18.79 for every $1 of SCHW'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 SCHW's P/E of 18.79 to its industry average and historical range.
Is SCHW overvalued based on PE ratio?
SCHW's P/E ratio of 18.79 is below the Financial Services industry average of approximately 20. The stock appears fairly valued relative to industry peers.
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). SCHW's trailing P/E is 18.79. 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 SCHW, with a current price of $102.38, the P/E ratio can be calculated once EPS is available. 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 SCHW's PEG ratio when earnings growth data is available.