Valuation check: IQV's P/E ratio is 29.36, above the Healthcare sector average of 26.36.
Get informed when a big investor buys or sells
+ Follow29.36
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.
IQVIA Holdings posts a P/E ratio of 29.36. That is above the Healthcare sector average of 26.36. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.
For Healthcare stocks, a P/E ratio near 26.36 is typical. IQVIA Holdings's 29.36 is higher that level. That is roughly 11.4% above the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.
IQVIA Holdings's P/E ratio of 29.36 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 IQV's P/E ratio usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 26.36), and (3) consistency with growth and profitability. This page covers the first two; IQVIA Holdings's other metric pages and overview cover the third.
Judging IQVIA Holdings against Healthcare peers is usually better than using a market-wide rule of thumb. Business models inside Healthcare are more comparable, which makes gaps in P/E ratio easier to interpret. Start with 29.36 here, then scan peer and history charts to see if the gap is persistent.