Teamviewer ag3/23/2023 It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. This article by Simply Wall St is general in nature. Alternatively, email editorial-team (at). Have feedback on this article? Concerned about the content? Get in touch with us directly. If P/E ratios interest you, you may wish to see this free collection of other companies that have grown earnings strongly and trade on P/E's below 20x. You always need to take note of risks, for example - TeamViewer has 1 warning sign we think you should be aware of. Unless these conditions change, they will continue to provide strong support to the share price. Right now shareholders are comfortable with the P/E as they are quite confident future earnings aren't under threat. We've established that TeamViewer maintains its high P/E on the strength of its forecast growth being higher than the wider market, as expected. Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects. Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future. With this information, we can see why TeamViewer is trading at such a high P/E compared to the market. With the market only predicted to deliver 13% per annum, the company is positioned for a stronger earnings result. Shifting to the future, estimates from the eleven analysts covering the company suggest earnings should grow by 32% per annum over the next three years. Accordingly, shareholders would have felt downbeat about the medium-term rates of earnings growth. However, this wasn't enough as the latest three year period has seen a very unpleasant 26% drop in EPS in aggregate. Retrospectively, the last year delivered an exceptional 46% gain to the company's bottom line. There's an inherent assumption that a company should far outperform the market for P/E ratios like TeamViewer's to be considered reasonable.
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