How should the RCM historical PE ratio be determined?
Realizing that PE stands for Price to Earnings ratio, we need two values to compute it: stock price and earnings per share. The stock price at any given date is a known historical value, but what about the earnings number to use?
✔️Accepted answer:
There are a number of different approaches when it comes to calculating a historical PE ratio for a company like R1 RCM. We like to take our measurements on each of the past quarterly earnings reports. That only leaves the question of whether the earnings number at that quarterly report should be used on an annualized basis, or some other method. We approach this question using three different methods, on this RCM Historical PE Ratio page.
What is the average historical PE for RCM based on annualized quarterly earnings?
As we look back through earnings history, what is the resulting PE calculation if at each measurement period we use that quarter's earnings result annualized?
✔️Accepted answer:
The RCM historical PE ratio using the annualized quarterly earnings method works out to 101.4.
What is the average historical PE for RCM based on trailing twelve month earnings?
As we look back through earnings history, what is the resulting PE calculation if at each measurement period we use the trailing twelve months combined earnings result in the calculation?
✔️Accepted answer:
The RCM historical PE ratio using the TTM earnings method works out to 126.8.
On this page we presented the
RCM Historical PE Ratio information for R1 RCM' stock.
The average RCM historical PE based on using the annualized quarterly earnings result at each measurement period (for the "E" in the PE calculation; and the closing price on earnings date as the "P") is 101.4. Meanwhile, using the trailing twelve month (TTM) quarterly earnings result as our method of calculation the "E" value at each measurement period, the average RCM historical PE based on this TTM earnings result method is 126.8. Note: any PE calculations involving negative earnings were discarded as not meaningful.
Let's now compare this RCM historical PE result, against the recent PE: when this page was posted on 9/10/2024, the most recent closing price for RCM had been 14.10, and the most recent quarterly earnings result, annualized, was 0.36. Meanwhile, the most recent TTM earnings summed to 0.06. From these numbers, we calculate the recent RCM PE on 9/10/2024 based on annualized quarterly EPS was 39.2. Based on RCM's history, that recent PE is low relative to the historical average, with the recent PE 61.3% lower than the historical average PE across our data set for R1 RCM. Looking at the recent RCM PE on 9/10/2024 based on TTM EPS, we calculate the ratio at 235.0. Based on RCM's history, that recent PE is elevated relative to the historical average, with the recent PE 85.3% higher than the historical average PE across our R1 RCM data set with TTM EPS used in the calculation at each period.
For self directed investors doing their due diligence on RCM or any other given stock, valuation analysis for RCM
can greatly benefit from studying the past earnings and resulting PE calculations. This exercise can help inform an analysis
as to whether the past earnings trajectory and current versus historical PE ratios justify the current stock value.
That's why we bring you
HistoricalPERatio.com to make it easy for investors to investigate
R1 RCM PE history or the past PE information for any stock in our coverage universe.
And in your continued research we hope you will be sure to check out the further links included for earnings
surprises history (beat/miss data) as well as next earnings dates for RCM. Thanks for visiting, and the next
time you need to research
RCM Historical PE Ratio or the ratio for another stock, we hope you'll think of our site, as your
go-to historical PE ratio research resource of choice.