🧮 GEO 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: $2.12 →
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 GEO Stock Report →
Intrinsic value, margin of safety, DCF valuation, and 250+ metrics.
📈 GEO Earnings Per Share →
Deep dive into EPS trends, quarterly history, and earnings growth analysis.
🏆 GEO ROIC →
Measure capital efficiency — how well management deploys every dollar invested.
💎 GEO Intrinsic Value →
Calculate what GEO is truly worth using DCF and Owner Earnings models.
💵 GEO Owner Earnings →
Warren Buffett's preferred measure of true earning power and cash generation.
🛡️ GEO Margin of Safety →
See if GEO is trading below its intrinsic value.
Summary: GEO P/E Ratio
The GEO Group, Inc. (GEO) trades at a P/E of 15.23x, which Zyberno classifies as a moderate multiple for a Industrials company — within the 15–22x range Zyberno considers reasonable for industrial companies where earnings visibility and order backlogs drive multiples. Earnings yield: 6.57%.
Based on 0 quarters of SEC filings, GEO's EPS is currently $2.12 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 GEO stock report on Zyberno.
Frequently Asked Questions
What is GEO's current P/E Ratio?
The GEO Group, Inc.'s trailing twelve month (TTM) P/E Ratio is 15.23x, within the context of Industrials sector multiples where Zyberno considers 15–22x moderate. Investors are paying $15.23 for every $1 of annual earnings.
Is GEO's P/E Ratio high or low?
The GEO Group, Inc. (GEO) trades at a P/E of 15.23x, which Zyberno classifies as a moderate multiple for a Industrials company — within the 15–22x range Zyberno considers reasonable for industrial companies where earnings visibility and order backlogs drive multiples. Earnings yield: 6.57%.
What is GEO's earnings yield?
GEO's earnings yield is 6.57%, 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 GEO: $32.28 ÷ $2.12 = 15.23x.
What is GEO's PEG Ratio?
GEO's PEG Ratio is 0.07. Potentially undervalued relative to growth. PEG below 1.0 is often considered undervalued, while above 2.0 may indicate overvaluation relative to growth.
📊 Full GEO Stock Report →
See GEO's intrinsic value, margin of safety, DCF valuation, and complete financial analysis with 250+ metrics.
🏆 GEO ROIC →
Compare to Return on Invested Capital — the most comprehensive measure of capital efficiency.
📈 GEO ROE →
Compare to Return on Equity and understand the impact of leverage on returns.
🎯 GEO Earnings Surprise (SUE) →
See whether GEO is beating or missing its own earnings trend — Standardized Unexpected Earnings and post-earnings drift.
👤 GEO Owner Earnings →
Warren Buffett's preferred measure of true economic earnings available to owners.
💰 GEO Net Income →
See the bottom-line profit that drives return calculations.
📊 GEO EPS →
Earnings per share — net income on a per-share basis.