T. Rowe Price Retirement 2020 Fund Class R Overview
Get informed when a big investor buys or sells
+ Follow10.23
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.
T. Rowe Price Retirement 2020 Fund Class R posts a P/E ratio of 10.23. That is below the sector sector average of 24.62. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.
For its sector stocks, a P/E ratio near 24.62 is typical. T. Rowe Price Retirement 2020 Fund Class R's 10.23 is lower that level. That is roughly 58.5% below the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.
T. Rowe Price Retirement 2020 Fund Class R's P/E ratio of 10.23 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 RRTBX's P/E ratio usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 24.62), and (3) consistency with growth and profitability. This page covers the first two; T. Rowe Price Retirement 2020 Fund Class R's other metric pages and overview cover the third.
