Ulta Beauty P/E Ratio

Ulta Beauty posts a P/E ratio of 18.78. That is below the Consumer Discretionary sector average of 51.44. 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 51.44 is typical. Ulta Beauty's 18.78 is lower that level. That is roughly 63.5% below the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.

Ulta Beauty's P/E ratio of 18.78 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 ULTA's P/E ratio usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 51.44), and (3) consistency with growth and profitability. This page covers the first two; Ulta Beauty's other metric pages and overview cover the third.

Judging Ulta Beauty 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 18.78 here, then scan peer and history charts to see if the gap is persistent.