🧮 AZO P/E Ratio Calculation
What is the P/E Ratio?
The Price-to-Earnings (P/E) Ratio is one of the most widely used valuation metrics. It tells you how much investors are willing to pay for each dollar of a company's earnings. Zyberno calculates P/E using trailing twelve month (TTM) diluted earnings from official SEC filings.
How to Interpret the P/E Ratio
Low P/E (Under 15x)
May indicate undervaluation, or the market expects declining earnings. Common in mature, slow-growth industries.
Average P/E (15-20x)
Roughly in line with historical S&P 500 average. Suggests fairly valued with moderate growth expectations.
High P/E (20-35x)
Investors expect above-average earnings growth. Common for technology companies and market leaders.
Very High P/E (35x+)
Extreme growth expectations priced in. Significant valuation risk if growth slows.
PEG Ratio: P/E Adjusted for Growth
The PEG Ratio addresses a key limitation of P/E by factoring in earnings growth. A PEG of 1.0 suggests fair value; below 1.0 may indicate undervaluation, while above 2.0 suggests a premium price for growth.
P/E Ratio Limitations
The P/E ratio doesn't work for companies with negative earnings. It can be manipulated by one-time charges or gains, and it doesn't account for debt levels or growth rates. Use P/E alongside PEG ratio, EV/EBITDA, and Owner Earnings yield for a complete picture.
Comparing Valuation Metrics
EPS: $145.44 →
The denominator in the P/E calculation. Represents profit allocated to each outstanding share.
Price-to-Book: N/A
Compares stock price to book value. Useful for asset-heavy industries like banking and manufacturing.
EV/EBITDA: N/A
Accounts for debt and is useful for comparing companies with different capital structures.
Owner Earnings Yield →
Warren Buffett's preferred metric. Shows cash return to owners as a percentage of market cap.
📊 Full AZO Stock Report →
Intrinsic value, margin of safety, DCF valuation, and 250+ metrics.
📈 AZO Earnings Per Share →
Deep dive into EPS trends, quarterly history, and earnings growth analysis.
🏆 AZO ROIC →
Measure capital efficiency — how well management deploys every dollar invested.
💎 AZO Intrinsic Value →
Calculate what AZO is truly worth using DCF and Owner Earnings models.
💵 AZO Owner Earnings →
Warren Buffett's preferred measure of true earning power and cash generation.
🛡️ AZO Margin of Safety →
See if AZO is trading below its intrinsic value.
Summary: AZO P/E Ratio
AUTOZONE INC (AZO) trades at a P/E of 20.16x, which Zyberno classifies as a moderate multiple — within the 15–25x range Zyberno considers reasonable for businesses across industries. Earnings yield: 4.96%.
Based on 0 quarters of SEC filings, AZO's EPS is currently $145.44 on a trailing twelve-month basis. Zyberno cross-references the P/E ratio with business quality — a high multiple on a high-quality business (strong ROE, ROIC, and FCF) carries less risk than the same multiple on a weaker business. For complete financial analysis, view the full AZO stock report on Zyberno.
Frequently Asked Questions
What is AZO's current P/E Ratio?
AUTOZONE INC's trailing twelve month (TTM) P/E Ratio is 20.16x. Investors are paying $20.16 for every $1 of annual earnings.
Is AZO's P/E Ratio high or low?
AUTOZONE INC (AZO) trades at a P/E of 20.16x, which Zyberno classifies as a moderate multiple — within the 15–25x range Zyberno considers reasonable for businesses across industries. Earnings yield: 4.96%.
What is AZO's earnings yield?
AZO's earnings yield is 4.96%, which is the inverse of the P/E ratio (1 ÷ P/E). This represents the theoretical return if all earnings were distributed to shareholders.
How is P/E Ratio calculated?
P/E Ratio = Stock Price ÷ EPS. For AZO: $2,932.33 ÷ $145.44 = 20.16x.
What is AZO's PEG Ratio?
AZO's PEG Ratio is -999.00. Negative growth - PEG not meaningful. PEG below 1.0 is often considered undervalued, while above 2.0 may indicate overvaluation relative to growth.
📊 Full AZO Stock Report →
See AZO's intrinsic value, margin of safety, DCF valuation, and complete financial analysis with 250+ metrics.
🏆 AZO ROIC →
Compare to Return on Invested Capital — the most comprehensive measure of capital efficiency.
📈 AZO ROE →
Compare to Return on Equity and understand the impact of leverage on returns.
🎯 AZO Earnings Surprise (SUE) →
See whether AZO is beating or missing its own earnings trend — Standardized Unexpected Earnings and post-earnings drift.
👤 AZO Owner Earnings →
Warren Buffett's preferred measure of true economic earnings available to owners.
💰 AZO Net Income →
See the bottom-line profit that drives return calculations.
📊 AZO EPS →
Earnings per share — net income on a per-share basis.