Ford (F) P/E ratio is around 4 !

[gaelsbee]

https://www.macrotrends.net/stocks/charts/F/ford-motor/pe-ratio

Current and historical p/e ratio for Ford Motor (F) from 2010 to 2021. The price to earnings ratio is calculated by taking the latest closing price and dividing it by the most recent earnings per share (EPS) number. The PE ratio is a simple way to assess whether a stock is over or under valued and is the most widely used valuation measure.

 

[brokenjohninchrist]

@gaelsbee $8.2 billion of the "E" side of P/E came from the one-time sale of its Rivian investment, so keep that in mind.

 

[lutheranrose]

@brokenjohninchrist The forward PE ratio is 7.8 with an average of 6.2 predicted for next five years. The F150 lightning looks like a stud.

 

[ariel92]

@lutheranrose And the Bronco, Bronco Sport, Mach E, Maverick, et al...

 

[lutheranrose]

@ariel92 All great vehicles that will be popular for the years to come.

 

[adoptedprince]

@ariel92 The Bronco looks great. Everyone I look at one I just whisper America! to myself.

 

[resjudicata]

@lutheranrose Now sold in Australia!

 

[lucky9]

@brokenjohninchrist Makes me like them better they got that off their books!

Edit: Apparently they didn’t? Oh well, I just own 100 shares for the shareholder discount. If oil prices keep rising I’m gonna buy me a lightning and flip it for 10k.

 

[quantumleap009]

@lucky9 Lol the amount of upvotes for this shows how uninformed the sub is.

Ford didn’t sell their rivian position. They counted the unrealized gains of rivian stock in the Q4 2021 EPS as per accounting rules. So P/E is artificially low. Q1 2022 EPS will show an unrealized loss of Rivian stock and P/E will shoot up or EPS could even be negative. Amazon is in a similar situation.

TLDR; P/E isn’t useful with Ford due to rivian stock unrealized gains/losses affecting it.

 

[johnhus1966]

@quantumleap009 TLDR P/E used on its own is pretty useless

 

[alwayshavealwayswill]

@johnhus1966 Any trading multiple in a vaccuum is useless, even more so when we don't know how peers are trading relative to F

 

[eyore]

@alwayshavealwayswill How so? it’s not hard to look up stock prices or ratios for other care makers

 

[quantumleap009]

@johnhus1966 Very true. Unless it’s some very mature company it’s better to use it in conjunction with Forward P/E, PEG, etc.

 

[shlomo1]

@quantumleap009

Unless it’s some very mature company

TIL Ford isn't a mature company

 

[quantumleap009]

@shlomo1 You might wanna read the part about rivian stock again… Or are you one of the many that thinks Ford sold the stock?

 

[jools1981]

@quantumleap009 You implied that Ford isn’t a mature company, which obviously isn’t true. You were right about not using P/E in a vacuum though.

 

[quantumleap009]

@jools1981 You realize multiple things can be true at once right?I’ll spoon feed you the answer since you seem incapable of any type of critical thinking.

Ford is a mature company (though EV division is not) so P/E would be useful to look at yes. HOWEVER, it does have the Rivian position which makes P/E useless because the unrealized gains/losses are being accounted for in their earnings.

Here is what I mean:

Q4 Ford EPS with unrealized Rivian gain: $3.03
Q4 Ford EPS: $0.26

 

[jools1981]

@quantumleap009 Dude I’m agreeing with you, not sure why you’re so triggered haha. But Ford is a mature company, that was the only thing the other commenter was disputing.

 

[azythum]

@quantumleap009 Lol...this sub creams itself over trivial and low quality analysis.

 

[relicuk]

@azythum

low quality analysis.

if the analysis is high quality, the person posting it would keep it secret for himself, or sell it to some hedge fund or investment rag.