NET - CloudFlare Inc Stock Price, Fair Value and News

87.97USD+1.21 (+1.39%)Market Closed

Market Summary

USD87.97+1.21

Market Closed

1.39%

NET Alerts

5 major insider sales recently.

NET Stock Price

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NET RSI Chart

NET Valuation

Market Cap

29.4B

Price/Earnings (Trailing)

-159.56

Price/Sales (Trailing)

22.63

EV/EBITDA

-844.57

Price/Free Cashflow

209.64

NET Price/Sales (Trailing)

NET Profitability

Operating Margin

76.33%

EBT Margin

-13.72%

Return on Equity

-24.11%

Return on Assets

-6.67%

Free Cashflow Yield

0.48%

NET Fundamentals

NET Revenue

Revenue (TTM)

1.3B

Rev. Growth (Yr)

31.95%

Rev. Growth (Qtr)

8.01%

NET Earnings

Earnings (TTM)

-183.9M

Earnings Growth (Yr)

39.31%

Earnings Growth (Qtr)

-18.4%

Breaking Down NET Revenue

Last 7 days

4.6%

Last 30 days

-8.9%

Last 90 days

9.7%

Trailing 12 Months

47.7%

How does NET drawdown profile look like?

NET Financial Health

Current Ratio

3.5

Debt/Equity

1.68

Debt/Cashflow

0.2

NET Investor Care

Shares Dilution (1Y)

2.24%

Diluted EPS (TTM)

-0.55

Historical Charts for Stock Metrics

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Net sales

Year	Q1	Q2	Q3	Q4
2023	1.1B	1.1B	1.2B	1.3B
2022	730.5M	812.6M	894.1M	975.2M
2021	477.9M	530.6M	588.8M	656.4M
2020	316.5M	348.8M	389.1M	431.1M
2019	216.3M	239.8M	263.4M	287.0M
2018	0	0	163.8M	192.7M
2017	0	0	0	134.9M

Get all data in R, Python etc through our Historical Stock Data APIs

Tracking the Latest Insider Buys and Sells of CloudFlare Inc

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
Apr 24, 2024	ledbetter carl	sold	-892,960	89.1622	-10,015	-
Apr 18, 2024	seifert thomas j	acquired	-	-	15,000	chief financial officer
Apr 18, 2024	zatlyn michelle	acquired	-	-	18,955	president and coo
Apr 18, 2024	zatlyn michelle	sold	-1,650,460	87.0727	-18,955	president and coo
Apr 18, 2024	seifert thomas j	sold	-1,305,250	87.0166	-15,000	chief financial officer
Apr 17, 2024	zatlyn michelle	sold	-1,757,370	90.0985	-19,505	president and coo
Apr 17, 2024	ledbetter carl	sold	-725,769	90.3935	-8,029	-
Apr 17, 2024	zatlyn michelle	acquired	-	-	19,505	president and coo
Apr 16, 2024	zatlyn michelle	sold	-2,299,580	89.6871	-25,640	president and coo
Apr 16, 2024	zatlyn michelle	acquired	-	-	25,640	president and coo

Which funds bought or sold NET recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
Apr 25, 2024	Robeco Schweiz AG	new	-	2,294,870	2,294,870	0.04%
Apr 25, 2024	Zurcher Kantonalbank (Zurich Cantonalbank)	reduced	-2.56	830,902	7,069,070	0.03%
Apr 25, 2024	GHP Investment Advisors, Inc.	unchanged	-	1,018	7,263	-%
Apr 25, 2024	Lindbrook Capital, LLC	reduced	-16.35	-2,144	76,786	0.01%
Apr 25, 2024	Center for Financial Planning, Inc.	unchanged	-	1,357	9,683	-%
Apr 25, 2024	FJARDE AP-FONDEN /FOURTH SWEDISH NATIONAL PENSION FUND	added	7.92	1,394,000	6,858,000	0.08%
Apr 25, 2024	Bank of New York Mellon Corp	reduced	-7.19	8,655,320	117,725,000	0.02%
Apr 25, 2024	Meridian Wealth Management, LLC	sold off	-100	-782,477	-	-%
Apr 25, 2024	Mendota Financial Group, LLC	unchanged	-	339	2,421	-%
Apr 25, 2024	Bogart Wealth, LLC	reduced	-69.25	-35,142	19,560	-%

Are Funds Buying or Selling NET?

Are funds buying NET calls or puts?

Calls

Puts

No. of funds holding Calls - Puts

Net Call Options

No. of funds that own NET

No. of Funds

NET Alerts

5 major insider sales recently.

Unveiling CloudFlare Inc's Major ShareHolders

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 13, 2024	vanguard group inc	9.52%	28,159,189	SC 13G/A
Feb 13, 2024	sands capital management, llc	3.6%	10,593,642	SC 13G/A
Feb 12, 2024	prince matthew	9.3%	30,480,294	SC 13G/A
Feb 12, 2024	morgan stanley	9.9%	29,344,871	SC 13G/A
Feb 09, 2024	fmr llc	-	0	SC 13G/A
Feb 09, 2024	capital world investors	9.4%	27,791,766	SC 13G/A
Jan 30, 2024	baillie gifford & co	10.46%	30,938,677	SC 13G/A
Jan 29, 2024	blackrock inc.	5.6%	16,649,551	SC 13G/A
Jun 06, 2023	baillie gifford & co	11.03%	31,928,982	SC 13G/A
Feb 14, 2023	sands capital management, llc	5.4%	15,454,112	SC 13G

Recent SEC filings of CloudFlare Inc

View All Filings

Date Filed	Form Type	Document
Apr 25, 2024	4	Insider Trading
Apr 19, 2024	4	Insider Trading
Apr 19, 2024	ARS	ARS
Apr 19, 2024	DEF 14A	DEF 14A
Apr 19, 2024	DEFA14A	DEFA14A
Apr 18, 2024	144	Notice of Insider Sale Intent
Apr 18, 2024	4	Insider Trading
Apr 18, 2024	4	Insider Trading
Apr 11, 2024	4	Insider Trading
Apr 11, 2024	4	Insider Trading

Peers (Alternatives to CloudFlare Inc)

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
MSFT	3.0T	236.6B	-3.63%	33.23%	35.03	12.76	13.97%	24.86%
ADBE	213.9B	19.9B	-5.32%	28.58%	44.56	10.73	10.76%	1.35%
CRWD	72.6B	3.1B	-5.59%	141.36%	812.75	23.76	36.33%	148.75%
SQ	45.4B	21.9B	-10.45%	22.96%	6.6K	2.07	25.01%	101.26%
AKAM	15.4B	3.8B	-7.25%	24.42%	28.14	4.04	5.40%	4.57%
FFIV	10.7B	2.8B	-3.65%	37.78%	23.21	3.81	3.55%	53.13%
MID-CAP
ALTR	6.7B	612.7M	-3.08%	20.53%	-754.94	11	7.07%	79.45%
HCP	6.3B	583.1M	20.70%	13.67%	-33.13	10.83	22.54%	30.49%
ACIW	3.5B	1.5B	2.37%	34.86%	29.17	2.44	2.16%	-14.54%
APPN	2.7B	545.4M	-4.16%	2.06%	-24.66	5.04	16.53%	26.16%
SMALL-CAP
CSGS	1.4B	1.2B	-4.77%	-7.98%	20.66	1.21	7.30%	93.18%
ATEN	1.0B	251.7M	-1.02%	-4.24%	25.24	4.01	-10.22%	-14.79%
BAND	461.5M	601.1M	-0.17%	46.86%	-28.24	0.77	4.88%	-183.51%
DTSS	20.8M	7.0M	1.99%	-47.50%	-2.42	2.91	-55.73%	-45.27%
BLIN	13.8M	15.6M	12.82%	48.31%	-1.38	0.88	-6.37%	-5256.07%

CloudFlare Inc News

Latest updates

CloudFlare Inc Earnings Report: Key Takeaways & Analysis

Income Statement (Last 12 Months)

(*) denotes actual numbers (not divided by Thousands)
Income Statement (Quarterly)																					(In Thousands)
Description	(%) Q/Q	2023Q4	2023Q3	2023Q2	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4	2021Q3	2021Q2	2021Q1	2020Q4	2020Q3	2020Q2	2020Q1	2019Q4	2019Q3	2019Q2	2019Q1	2018Q4
Revenue	8.0%	362,473,000	335,603,000	308,494,000	290,175,000	274,700,000	253,857,000	234,517,000	212,167,000	193,596,000	172,347,000	152,428,000	138,055,000	125,926,000	114,162,000	99,721,000	91,250,000	83,930,000	73,941,000	67,424,000	61,727,000	55,898,500
Cost Of Revenue	6.7%	83,283,000	78,069,000	75,221,000	70,432,000	67,788,000	61,967,000	55,804,000	47,051,000	42,496,000	37,525,000	35,029,000	32,084,000	29,065,000	27,005,000	24,164,000	20,821,000	18,198,000	16,033,000	14,832,000	14,360,000	-
Gross Profit	8.4%	279,190,000	257,534,000	233,273,000	219,743,000	206,912,000	191,890,000	178,713,000	165,116,000	151,100,000	134,822,000	117,399,000	105,971,000	96,861,000	87,157,000	75,557,000	70,429,000	65,732,000	57,908,000	52,592,000	47,367,000	-
Operating Expenses	8.5%	322,019,000	296,746,000	289,445,000	267,015,000	257,603,000	237,837,000	243,254,000	205,140,000	192,164,000	161,316,000	146,271,000	137,225,000	121,602,000	108,409,000	100,261,000	106,500,000	95,674,000	98,994,000	72,363,000	64,514,000	-
S&GA Expenses	10.0%	165,214,000	150,214,000	146,688,000	137,001,000	132,050,000	116,033,000	117,622,000	100,057,000	96,219,000	85,877,000	75,995,000	69,974,000	63,552,000	55,982,000	51,376,000	46,965,000	47,107,000	45,538,000	35,836,000	30,817,000	-
R&D Expenses	6.4%	96,401,000	90,593,000	89,610,000	81,539,000	79,703,000	76,432,000	75,114,000	67,054,000	61,762,000	46,770,000	41,349,000	39,527,000	34,757,000	30,902,000	28,131,000	33,354,000	26,289,000	27,863,000	18,868,000	17,649,000	-
EBITDA Margin	45.6%	-0.03	-0.05	-0.08	-0.06	-0.09	-0.10	-0.20	-0.19	-0.20	-0.20	-0.09	-0.09	-0.12	-0.15	-0.25	-0.27	-0.26	-0.26	-0.30	-0.31	-0.34
Interest Expenses	-6.1%	1,069,000	1,138,000	1,539,000	2,126,000	875,000	1,512,000	1,040,000	1,557,000	16,108,000	12,448,000	10,444,000	10,234,000	10,062,000	9,828,000	5,007,000	67,000	142,000	407,000	290,000	273,000	-
Income Taxes	62.4%	2,036,500	1,254,000	1,500,000	1,314,000	1,046,000	1,400,000	-170,000	374,000	20,568,500	-3,100,000	-4,300,000	-833,000	166,000	-3,500,000	-1,900,000	-338,000	624,000	-212,000	389,000	314,000	-
Earnings Before Taxes	-15.8%	-25,811,000	-22,281,000	-93,002,000	-36,768,000	-44,845,000	-41,174,000	-63,707,000	-41,007,000	-56,930,000	-110,430,000	-39,820,000	-40,796,000	-33,844,000	-29,972,000	-28,073,000	-33,084,000	-27,531,000	-41,065,000	-19,317,000	-16,800,000	-
EBT Margin	15.8%	-0.14	-0.16	-0.19	-0.18	-0.20	-0.23	-0.33	-0.34	-0.38	-0.38	-0.27	-0.28	-0.29	-0.30	-0.37	-0.38	-0.36	-0.36	-0.38	-0.40	-0.45
Net Income	-18.4%	-27,865,000	-23,535,000	-94,467,000	-38,082,000	-45,917,000	-42,546,000	-63,537,000	-41,381,000	-77,501,000	-107,335,000	-35,510,000	-39,963,000	-34,021,000	-26,468,000	-26,135,000	-32,746,000	-28,155,000	-40,853,000	-19,706,000	-17,114,000	-
Net Income Margin	15.1%	-0.14	-0.17	-0.20	-0.18	-0.20	-0.25	-0.36	-0.36	-0.40	-0.37	-0.26	-0.26	-0.28	-0.29	-0.37	-0.38	-0.37	-0.36	-0.39	-0.41	-0.45
Free Cashflow	33.9%	54,625,000	40,809,000	25,703,000	18,873,000	37,978,000	792,000	1,167,000	-59,948,000	12,283,000	-35,730,000	-6,117,000	1,226,000	-19,226,000	-13,384,000	-15,213,000	-25,681,000	-20,882,000	-29,777,000	-12,821,000	-18,726,000	-25,229,000

Balance Sheet

(In Millions)

(*) denotes actual numbers (not divided by Millions)
Balance Sheet																			(In Millions)
Description	(%) Q/Q	2023Q4	2023Q3	2023Q2	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4	2021Q3	2021Q2	2021Q1	2020Q4	2020Q3	2020Q2	2020Q1	2019Q4	2019Q3	2018Q4
Assets	6.6%	2,760	2,590	2,533	2,668	2,588	2,491	2,468	2,354	2,372	2,316	1,446	1,406	1,381	1,371	1,364	859	831	840	298
Current Assets	6.7%	1,983	1,858	1,818	1,954	1,888	1,816	1,814	1,895	1,956	1,931	1,146	1,140	1,130	1,127	1,132	648	690	696	197
Cash Equivalents	-7.7%	87.00	94.00	159	256	204	149	154	160	321	625	257	197	118	121	323	118	146	508	31.00
Net PPE	4.2%	323	310	293	298	287	264	245	202	184	177	157	136	124	122	115	100	101	92.00	73.00
Goodwill	0.0%	148	148	148	148	148	149	149	120	5.00	6.00	17.00	17.00	17.00	17.00	17.00	16.00	4.00	4.00	4.00
Liabilities	5.6%	1,997	1,891	1,891	2,015	1,964	1,897	1,888	1,838	1,556	1,462	645	601	564	545	528	152	105	99.00	80.00
Current Liabilities	18.7%	567	478	473	445	398	339	333	277	289	227	200	168	141	131	121	108	84.00	77.00	61.00
Long Term Debt	0.1%	1,283	1,282	1,281	1,437	1,436	1,435	1,434	1,433	1,147	1,143	401	392	383	375	366	-	-	-	-
LT Debt, Current	-	-	-	35.00	-	-	-	-	-	12.00	-	-	-	-	-	-	-	-	0.00	0.00
LT Debt, Non Current	0.1%	1,283	1,282	1,281	1,437	1,436	1,435	1,434	1,433	1,147	1,143	401	392	383	375	366	-	-	-	-
Shareholder's Equity	9.1%	763	699	642	653	624	594	580	515	811	853	801	804	817	826	836	706	726	740	-
Retained Earnings	-2.8%	-1,023	-995	-972	-877	-839	-793	-751	-687	-680	-603	-495	-460	-420	-386	-360	-333	-301	-273	-195
Additional Paid-In Capital	5.0%	1,785	1,699	1,620	1,536	1,475	1,405	1,348	1,216	1,495	1,456	1,297	1,264	1,237	1,212	1,194	1,039	1,027	1,014	82.00
Shares Outstanding	0.3%	334	333	331	330	326	327	325	323	312	310	308	306	300	299	297	296	146	118	81.00
Float	-	-	-	9,021	-	-	-	7,588	-	-	-	14,847	-	-	-	4,336	-	-	1,905	-

Cashflow (Last 12 Months)

(In Thousands)

(*) denotes actual numbers (not divided by Thousands)
Cashflow (Quarterly)																					(In Thousands)
Description	(%) Q/Q	2023Q4	2023Q3	2023Q2	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4	2021Q3	2021Q2	2021Q1	2020Q4	2020Q3	2020Q2	2020Q1	2019Q4	2019Q3	2019Q2	2019Q1	2018Q4
Cashflow From Operations	25.5%	85,441	68,100	64,451	36,414	78,123	42,688	38,251	-35,467	40,617	-6,918	7,455	23,494	-8,813	1,973	3,987	-14,276	-8,574	-17,786	-2,867	-9,690	-
Share Based Compensation	0.9%	74,424	73,772	68,392	57,401	60,232	53,765	54,815	33,965	28,499	23,049	20,547	18,042	16,243	14,745	12,449	12,897	11,615	22,911	1,044	1,057	-
Cashflow From Investing	-1.4%	-101,647	-100,229	108	15,567	-19,956	-48,887	-56,048	-110,805	-354,795	-444,773	42,470	47,776	-579	-205,153	-300,769	-8,772	-352,659	-92,829	12,638	15,209	-
Cashflow From Financing	128.3%	9,790	-34,610	-168,612	1,247	8,019	1,439	11,143	-14,254	9,774	820,183	10,150	7,379	6,732	1,156	501,702	-4,678	-1,497	570,216	-199	2,248	-
Buy Backs	-	-	-	34.00	-	-	-	-	3.00	1.00	19.00	19.00	150	44.00	12.00	31.00	70.00	128	67.00	84.00	4.00	-

NET Income Statement

2023-12-31

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Statement [Abstract]
Revenue	$ 1,296,745	$ 975,241	$ 656,426
Cost of revenue	307,005	232,610	147,134
Gross profit	989,740	742,631	509,292
Operating expenses:
Sales and marketing	599,117	465,762	328,065
Research and development	358,143	298,303	189,408
General and administrative	217,965	179,769	119,503
Total operating expenses	1,175,225	943,834	636,976
Loss from operations	(185,485)	(201,203)	(127,684)
Non-operating income (expense):
Interest income	68,167	14,877	1,970
Interest expense	(5,872)	(4,984)	(49,234)
Loss on extinguishment of debt	(50,300)	0	(72,234)
Other income (expense), net	(4,372)	577	(794)
Total non-operating income (expense), net	7,623	10,470	(120,292)
Loss before income taxes	(177,862)	(190,733)	(247,976)
Provision for income taxes	6,087	2,648	12,333
Net loss	$ (183,949)	$ (193,381)	$ (260,309)
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (0.55)	$ (0.59)	$ (0.83)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (0.55)	$ (0.59)	$ (0.83)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares)	333,656	326,332	312,321
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares)	333,656	326,332	312,321

NET Balance Sheet

2023-12-31

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 86,864	$ 204,178
Available-for-sale securities	1,586,880	1,445,759
Accounts receivable, net	248,268	148,544
Contract assets	11,041	8,292
Restricted cash short-term	2,522	10,555
Prepaid expenses and other current assets	47,502	70,556
Total current assets	1,983,077	1,887,884
Property and equipment, net	322,813	286,600
Goodwill	148,047	148,047
Acquired intangible assets, net	19,564	32,483
Operating lease right-of-use assets	138,556	132,360
Deferred contract acquisition costs, noncurrent	133,236	93,145
Restricted cash	1,838	471
Other noncurrent assets	12,636	6,918
Total assets	2,759,767	2,587,908
Current liabilities:
Accounts payable	53,727	35,607
Accrued expenses and other current liabilities	63,597	68,327
Accrued compensation	63,801	42,014
Operating lease liabilities	38,351	33,275
Deferred revenue	347,608	218,647
Total current liabilities	567,084	397,870
Convertible senior notes, net	1,283,362	1,436,192
Operating lease liabilities, noncurrent	113,490	107,624
Deferred revenue, noncurrent	17,244	11,732
Other noncurrent liabilities	15,540	10,526
Total liabilities	1,996,720	1,963,944
Commitments and contingencies (Note 8)
Stockholders’ Equity
Additional paid-in capital	1,784,566	1,475,423
Accumulated deficit	(1,023,840)	(839,891)
Accumulated other comprehensive income (loss)	1,984	(11,896)
Total stockholders’ equity	763,047	623,964
Total liabilities and stockholders’ equity	2,759,767	2,587,908
Class A common stock
Stockholders’ Equity
Common stock	297	286
Class B common stock
Stockholders’ Equity
Common stock	$ 40	$ 42

About CloudFlare Inc

CloudFlare, Inc. operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, secure origin connection, and rate limiting products. It also offers website and application performance solutions, including content delivery, load balancing, DNS, agro smart routing, video stream delivery, content optimization, virtual backbone, always online, and cloudflare waiting room and registrar; and network services, which deliver network connectivity, security, and performance to customers as a service, including WAN, WARP, magic transit, magic firewall, cloudflare network interconnect, and spectrum. In addition, the company provides zero trust services, such as cloudflare access, cloudflare gateway, remote browser isolation, cloud access security broker, cloudflare area 1 email security, and data loss prevention products that protect, inspect, and privilege data. Further, it provides developer-based solutions consisting of cloudflare workers, pages, stream, and images, as well as Cloudflare Data Localization suite, a tool that set rules and controls at the network edge; durable objects and R2 object storage products; Consumer DNS Resolver, a consumer app to browse the Internet; and consumer VPN for consumers to secure and accelerate traffic on mobile devices. The company serves customers in the technology, healthcare, financial services, consumer and retail, and non-profit industries, as well as government. CloudFlare, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

CEO	Mr. Matthew Prince
WEBSITE	cloudflare.com
INDUSTRY	Software - Infra
EMPLOYEES	3389

CloudFlare Inc Frequently Asked Questions

What is the ticker symbol for CloudFlare Inc? What does NET stand for in stocks?

NET is the stock ticker symbol of CloudFlare Inc. Every public company that trades on a stock exchange gets a ticker symbol.

What is the market capital of CloudFlare Inc (NET)?

As of Fri Apr 26 2024, market cap of CloudFlare Inc is 29.35 Billion. The market capitalization is calculated by multiplying the stock price with the number of shares outstanding.

What is the fair value of NET stock?

You can check NET's fair value in chart for subscribers.

What is the fair value of NET stock?

You can check NET's fair value in chart for subscribers. The fair value of CloudFlare Inc is provided for various growth and macro-economic scenarios from very pessimiatic to very optimistic assumptions. These fair values are estimates from Grufity's Fair Value model based on company's past performance. However, past performance of CloudFlare Inc is no guarantee of future performance. These fairvalue estimates should only be used as one of the inputs in your stock analysis. We provide model's historical fair value estimates for NET so that you know how good or bad the model has been in the past so you can discard it if needed. There are others that provide fair values of stocks such as wallmine, finbox, gurufocus and finviz. Most provide point in time estimates. We provide a history of our models fair value estimates so that you can get a sense of it's usefulness. Otherwise this data point is of little use.

Is CloudFlare Inc a good stock to buy?

The fair value guage provides a quick view whether NET is over valued or under valued. Whether CloudFlare Inc is cheap or expensive depends on the assumptions which impact CloudFlare Inc's fair value. We provide several scenarios of inflation and growth to encompass these range of assumptions for NET.

What is CloudFlare Inc's Price to Earnings (PE) and Price to sales (PS) ratio?

As of Fri Apr 26 2024, NET's PE ratio (Price to Earnings) is -159.56 and Price to Sales (PS) ratio is 22.63. The price to earnings and price to sales ratio are two most important valuation metrics for any company. PE ratio tell us the number of years of earnings investors are ready to pay for owning the company. Historically, S&P500 price to earnings ratio has fallen below 12 during periods of gloom and gone past 30 during periods of euphoria. NET PE ratio will change depending on the future growth rate expectations of investors.