Generac Holdings P/E Ratio

Generac Holdings posts a P/E ratio of 38.58. That is above the Industrials sector average of 26.81. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.

For Industrials stocks, a P/E ratio near 26.81 is typical. Generac Holdings's 38.58 is higher that level. That is roughly 43.9% above the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.

Generac Holdings's P/E ratio of 38.58 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 GNRC's P/E ratio usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 26.81), and (3) consistency with growth and profitability. This page covers the first two; Generac Holdings's other metric pages and overview cover the third.

Judging Generac Holdings against Industrials peers is usually better than using a market-wide rule of thumb. Business models inside Industrials are more comparable, which makes gaps in P/E ratio easier to interpret. Start with 38.58 here, then scan peer and history charts to see if the gap is persistent.