Under Armour P/E Ratio

Under Armour posts a P/E ratio of -4.21. That is above the Consumer Cyclical sector average of -7.19. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.

For Consumer Cyclical stocks, a P/E ratio near -7.19 is typical. Under Armour's -4.21 is higher that level. That is roughly 41.5% above the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.

Under Armour's P/E ratio of -4.21 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 UAA's P/E ratio usually means three checks: (1) trend versus prior periods, (2) level versus peers (average -7.19), and (3) consistency with growth and profitability. This page covers the first two; Under Armour's other metric pages and overview cover the third.

Judging Under Armour against Consumer Cyclical peers is usually better than using a market-wide rule of thumb. Business models inside Consumer Cyclical are more comparable, which makes gaps in P/E ratio easier to interpret. Start with -4.21 here, then scan peer and history charts to see if the gap is persistent.