---
title: "Humble opinion on P/E ratio"
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/36954862.md"
description: "Whether the price-to-earnings ratio is "normal" depends on multiple factors, including industry, country, market environment, and the specific situation of the company, so there is no fixed "normal" value. General range: • In mature markets (e.g., the U.S.), a P/E ratio between 15 and 25 is generally considered a relatively reasonable range, especially for companies with stable growth. • Below 10 may indicate that the company is undervalued or has weak profitability. • Above 30 may imply high market expectations for the company's future growth (e.g., tech stocks) or the risk of a bubble..."
datetime: "2025-12-05T17:04:03.000Z"
locales:
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  - [zh-CN](https://longbridge.com/zh-CN/topics/36954862.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/36954862.md)
author: "[小林的交易员](https://longbridge.com/en/profiles/14620627.md)"
---

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# Humble opinion on P/E ratio

Whether the price-to-earnings ratio is "normal" depends on multiple factors, including industry, country, market conditions, and the specific situation of the company, so there is no fixed "normal" value.

1.  General range:  
    • In mature markets (e.g., the U.S.), a P/E ratio between 15 and 25 is generally considered a relatively reasonable range, especially for companies with stable growth.  
    • Below 10 may indicate that the company is undervalued or has weak profitability.  
    • Above 30 may imply high market expectations for future growth (e.g., tech stocks) or bubble risks.
2.  Industry differences:  
    • Due to high growth potential, tech industries (e.g., software, internet companies) may have P/E ratios of 30-50 or even higher.  
    • Traditional manufacturing or utility companies, with slow growth, typically have P/E ratios between 10-20.
3.  Market conditions:  
    • P/E ratios are generally higher during bull markets and lower during bear markets.  
    • If a company has stable earnings and promising growth, a higher P/E ratio may still be reasonable.  
    • If earnings are volatile or the outlook is uncertain, a high P/E ratio may not be normal.