Valuation check: CHT's P/E ratio is 28.63, above the Telecommunications sector average of 9.27.
Get informed when a big investor buys or sells
+ Follow28.63
The P/E ratio compares a company's stock price to its earnings per share. A lower P/E ratio may indicate that the stock is undervalued.
Chunghwa Telecom posts a P/E ratio of 28.63. That is above the Telecommunications sector average of 9.27. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.
For Telecommunications stocks, a P/E ratio near 9.27 is typical. Chunghwa Telecom's 28.63 is higher that level. That is roughly 208.9% above the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.
Chunghwa Telecom's P/E ratio of 28.63 comes from dividing a price-based measure by a related financial statistic. Changes can come from the stock price moving, the underlying fundamental shifting, or both. Track both the level and the trend — a rising multiple on falling fundamentals is a different story than a rising multiple on rising earnings.
Context for CHT's P/E ratio usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 9.27), and (3) consistency with growth and profitability. This page covers the first two; Chunghwa Telecom's other metric pages and overview cover the third.
Judging Chunghwa Telecom against Telecommunications peers is usually better than using a market-wide rule of thumb. Business models inside Telecommunications are more comparable, which makes gaps in P/E ratio easier to interpret. Start with 28.63 here, then scan peer and history charts to see if the gap is persistent.