O`Reilly Automotive P/E Ratio

O`Reilly Automotive posts a P/E ratio of 28.19. That is below the Consumer Discretionary sector average of 44.5. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.

For Consumer Discretionary stocks, a P/E ratio near 44.5 is typical. O`Reilly Automotive's 28.19 is lower that level. That is roughly 36.7% below the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.

O`Reilly Automotive's P/E ratio of 28.19 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 ORLY's P/E ratio usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 44.5), and (3) consistency with growth and profitability. This page covers the first two; O`Reilly Automotive's other metric pages and overview cover the third.

Judging O`Reilly Automotive against Consumer Discretionary peers is usually better than using a market-wide rule of thumb. Business models inside Consumer Discretionary are more comparable, which makes gaps in P/E ratio easier to interpret. Start with 28.19 here, then scan peer and history charts to see if the gap is persistent.