Advanced Charting

    P/E ratio chart: is this stock cheap?

    See a stock’s P/E for every trading day against its own history and a Formula Fair Value line, and judge whether today’s price is high or low for that stock.

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    Advanced Charting P/E valuation chart for Microsoft (MSFT) over 10 years: daily price against the Historical Normal Value and Formula Fair Value lines, dashed consensus projections for the next two fiscal years, and the window summary.

    Overview

    Most investors start with one question: is this stock cheap or expensive right now, compared with its own past? Advanced Charting answers it with a P/E ratio chart that has a reading for every trading day. Each day’s closing price is divided by trailing twelve-month earnings per share, smoothed between reports, so the full P/E history moves with the price. The Historical Normal line marks the stock’s typical multiple over your window, and the Formula Fair Value line shows where a growth-based multiple would put the price.

    Earnings are only one way to value a company. Switch the chart to price to sales, EBIT, EBITDA, operating cash flow, free cash flow, or book value, or to price to FFO for companies that report funds from operations, where the data exists. PEG adjusts for growth, and PEGY for growth plus dividends. Add analyst estimates to extend the lines years ahead, compare two stocks side by side, and save the views you want to revisit.

    Formula Fair Value is a multiple-based estimate for research, not a discounted cash flow model and not a prediction of where a price will go. Everything on these valuation charts is free with a free GNG account, and it will stay free. GNG ratings are the one part that needs Pro Lite or higher.

    What you get

    • Daily P/E and other multiples against their own history
    • Price against Formula Fair Value and Historical Normal
    • Historical P/E, price to free cash flow, PEG, and PEGY
    • Analyst estimates and return projections
    • Compare two stocks side by side on one metric and window
    • Saved chart views, drawings, and shareable images

    Inside the tool

    Projections ahead of today

    Microsoft valuation chart over five years with dashed consensus estimate lines through June 2029, estimate rows marked E, and a projection card with the target value, price return, dividends, and CAGR.

    Consensus estimates extend the chart years ahead, and the projection card shows the return and CAGR to any target.

    The Microsoft example projects from the latest price to a future point on the Historical Normal consensus line. The card reports the target value and multiple, price return, dividends, total return, and annualized growth. Dashed lines and fiscal rows marked E distinguish estimates from historical figures.

    • Select plotted start and target points to examine a scenario
    • Separate price appreciation from actual and estimated cash dividends
    • Read the target date and assumptions beside the result
    • Projection dividends are not reinvested

    Compare two companies

    Two valuation charts side by side for Microsoft (MSFT) and Apple (AAPL), each with price, value lines, yearly highs and lows, and estimate rows.

    Put two companies side by side on the same metric and window, each with its own estimates.

    To compare two stocks, press Compare in the chart header and search for the second company. Microsoft and Apple appear side by side using the same valuation metric and historical window. Each chart keeps its own price scale, value lines, fiscal-year highs and lows, and estimate rows, so you compare valuation and growth rather than share prices alone.

    • Press Compare, then search for the second company
    • Use a common metric and timeframe across both charts
    • Review each company’s available analyst estimates
    • Comparison charts stack vertically on smaller screens

    Draw on the chart

    One-year Microsoft candlestick chart with volume, a gold support trend line labeled Support, a horizontal resistance line, and the drawing toolbar.

    Trend lines, price levels and notes stay with your account on the Price chart.

    The Price view shows Microsoft candlesticks and volume with a support trend line, a horizontal resistance level, and a text note. The desktop drawing toolbar lets you mark the levels and observations you want to revisit. Drawings are saved to your account for the selected company.

    • Trend lines, horizontal lines and rays, vertical lines, and text
    • Select a drawing to remove it, or clear the chart’s drawings
    • Switch between candlestick, OHLC, line, and area charts
    • Drawing creation uses the desktop toolbar

    Choose the multiple

    The metric menu open over a Microsoft valuation chart, listing P/E, P/S, P/EBIT, P/EBITDA, P/OCF, P/FCF, P/B, PEGY and PEG, with the daily P/E line and its dashed Historical Normal multiple behind it.

    Value a company on earnings, sales, EBIT, EBITDA, cash flow, book value, PEG or PEGY.

    Pick the multiple behind the chart: the P/E ratio, or price to sales, operating profit, cash flow, or book value, or a growth-adjusted ratio. The example keeps Microsoft’s price and valuation history visible behind the menu, so each choice redraws the multiple history and the value lines on the same chart.

    • P/E, P/S, P/EBIT, P/EBITDA, P/OCF, P/FCF, and P/B where available
    • PEG and PEGY forms based on P/E or EV/EBITDA
    • Metric choices reflect the company’s available data
    • Use price to free cash flow alongside earnings-based valuation

    Capabilities

    Valuation assumptions

    Formula Fair Value applies a growth-based fair multiple to the selected per-share metric. Historical Normal uses the stock’s trimmed average multiple over the selected window. In a single-company valuation view, edit either multiple to examine your own assumptions and reset it to the calculated value.

    • Custom assumptions update the value lines and readout for the session
    • P/FFO is available for companies with reported funds-from-operations data
    • Show or hide price, multiple, value, dividend, and recession layers

    Window readout

    The summary connects the latest close with the current multiple, metric yield, dividend yield, historical growth, and estimated growth. It reports premiums or discounts to the valuation references and dated implied returns when forecast data is available. Hover over the chart to inspect a specific point.

    • Blended and trailing multiples show their applicable basis
    • PEG and PEGY distinguish consensus growth from historical window growth
    • Compare growth-adjusted ratios with their historical median
    • Implied returns display the target date and dividend assumptions

    Fiscal context

    The rows around the valuation chart align fiscal-year highs and lows with the underlying per-share metric, annual change, and dividends. Forecast columns are marked as estimates. Preset and custom date ranges let you change the historical context without losing the connection between price and fundamentals.

    • Inspect fiscal dates, metric values, growth, and dividends together
    • Forecast length depends on the available company and metric estimates
    • The readout stacks below the chart on narrower screens

    Dividend trends

    For dividend-paying companies, review dividend growth over the selected window, average annual growth, and normal yield. Dividend history also shows consecutive increases and the first payment year when available, helping you connect the income record with the stock’s valuation.

    • Fiscal dividend figures are split adjusted and include special distributions
    • Regular dividend yield is identified separately in PEGY calculations
    • Historical dividends and available consensus dividends have distinct chart layers

    Price overlays

    Add earnings, dividend declaration, ex-dividend, payment-date, and stock-split markers to the Price chart. Toggle volume and earnings beat/miss coloring to connect market activity with company events. The chart uses daily price history and identifies the latest market data date.

    • Inspect historical price moves alongside dated events
    • Show or hide event groups and the volume pane
    • Pan and zoom the chart to inspect the period that matters

    Multiple comparison

    The Multiple compare surface plots selected valuation ratios for one company on a shared historical chart. Add or remove a comparable ratio, inspect values at a selected date, and compare today’s growth-adjusted reading with its historical median when the required data is available.

    • Compare earnings, sales, cash-flow, and other available multiples
    • Include available PEG or PEGY forms in the comparison
    • Read the growth basis and consensus context for derived ratios

    Saved views

    Save a named chart configuration to return to the same company, metric, timeframe, forecast selection, and chart surface. Reopen a view from the Saved views menu or remove one you no longer need. Saved-view and drawing limits are configured for the tool without changing the free charting access promise.

    • Saved configurations retain applicable overlay and comparison settings
    • Drawings are stored separately for each company
    • Multiple overrides are session assumptions, not saved-view settings

    Chart sharing

    Download a chart image, copy it to the clipboard, or create a hosted image link for sharing. Copy chart link creates a URL with the selected company, metric, timeframe, surface, and forecast settings. An image preserves the captured view; a chart link opens the tool with those selected settings.

    • Image snapshots include the chart’s company and valuation context
    • Chart links can include the selected comparison company
    • Private drawings and custom multiple overrides are not included in chart links

    Analyst context

    Open AI Chart Analysis to ask GNG Analyst about the active company and chart setup. The analysis receives the selected metric, historical window, valuation figures, and available projection or multiple-comparison context, so you can discuss the assumptions behind the view.

    • Ask about the valuation gap, growth assumptions, or comparison
    • GNG Analyst access and credit limits apply separately

    How it works

    1. Choose a company

      Search for a stock, pick a timeframe or custom date range, and choose the multiple to chart, starting with P/E.

    2. Read the valuation

      Check where today’s P/E sits against its Historical Normal line and where the price sits against Formula Fair Value, then read the fiscal-year rows behind them.

    3. Explore a scenario

      Press Compare to put a second company beside the first, add available forecast years, or select plotted points for a projection. The Price view shows price action and dated events.

    4. Keep your research

      Save the chart configuration for later, download or share an image, and use the related research tools to investigate the questions that remain.

    Common questions

    Is Advanced Charting free?
    Yes. Valuation and price charts, daily multiples, estimates, comparisons, drawings, saved views, and snapshots are free with a free GNG account, and it will stay free. GNG ratings on the chart are part of Pro Lite and higher plans.
    How can I tell if a stock is cheap or expensive?
    Compare today’s multiple with the stock’s own history. A daily P/E well above its Historical Normal line means investors pay more than usual for each dollar of earnings, and well below it, less. Formula Fair Value adds a growth-based check. Neither is a buy or sell signal.
    How is the daily P/E calculated?
    For each trading day, the chart divides the closing price by trailing twelve-month earnings per share, smoothed between reports. The latest reading can blend in the next analyst estimate, and the readout labels which basis applies. Other multiples use their own per-share figure.
    How do you determine the fair value of a stock?
    Common methods include discounted cash flow models and valuation multiples. GNG Formula Fair Value uses multiples: it applies a growth-based fair multiple to a per-share metric such as earnings. Historical Normal uses the stock’s typical multiple over your chosen window.
    What is a good P/E ratio?
    There is no single good P/E. Growth, risk, and earnings quality all matter, so compare the current multiple with the company’s own P/E history and Historical Normal line. A negative P/E means the company lost money, so the ratio says little. Try a sales or cash flow multiple.
    Are analyst estimates and projections predictions?
    No. Forward lines use available analyst consensus, while projections calculate the return between selected chart points. They are estimates, not promises. Future business results, prices, and dividends may differ from the assumptions.

    Create your free account, pick a stock, and see its P/E history.

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    Formula Fair Value, Historical Normal, analyst estimates, and projections are calculations for research. They are not promises of future results or recommendations to buy or sell any security.