RKT Rocket Companies PE ratio, current and historical analysis
As at May 30, 2025, the RKT stock has a PE ratio of 637.5. This is based on the current EPS of $0.02 and the stock price of $12.75 per share.
RKT PE ratio history
The mean historical PE ratio of Rocket Companies over the last five years is 79.65. The current 637.5 PE ratio is comparable to the historical average. Over the past five years, RKT's PE ratio was at its highest in the Mar 2025 quarter at 603.5, with a price of $12.07 and an EPS of $0.02. The Sep 2021 quarter recorded the bottom point at 4.86, with a price of $16.04 and an EPS of $3.3.
Rocket Companies PE ratio history chart
Rocket Companies PE ratio by year
Maximum annual increase: 202.7% in 2022
Maximum annual decrease: -48.07% in 2021
| Year | PE ratio | PE change | Price | EPS |
|---|---|---|---|---|
| 2024 | 53.62 | N/A | $11.26 | $0.21 |
| 2023 | N/A | N/A | $14.48 | -$0.12 |
| 2022 | 17.95 | 202.7% | $7 | $0.39 |
| 2021 | 5.93 | -48.07% | $14 | $2.36 |
| 2020 | 11.42 | N/A | $20.22 | $1.77 |
| 2019 | N/A | N/A | N/A | N/A |
| 2018 | N/A | N/A | N/A | N/A |
| 2017 | N/A | N/A | N/A | N/A |
Rocket Companies PE ratio by quarter (TTM)
| Year | PE ratio | PE change | Price | EPS |
|---|---|---|---|---|
| Mar 2025 | 603.5 | 1,025.51% | $12.07 | $0.02 |
| Dec 2024 | 53.62 | N/A | $11.26 | $0.21 |
| Sep 2024 | N/A | N/A | $19.19 | -$0.11 |
| Jun 2024 | 137 | 41.24% | $13.7 | $0.1 |
| Mar 2024 | 97 | N/A | $14.55 | $0.15 |
| Dec 2023 | N/A | N/A | $14.48 | -$0.12 |
| Sep 2023 | N/A | N/A | $8.18 | -$0.18 |
| Jun 2023 | N/A | N/A | $8.96 | -$0.17 |
| Mar 2023 | N/A | N/A | $9.06 | -$0.2 |
| Dec 2022 | 17.95 | 152.82% | $7 | $0.39 |
| Sep 2022 | 7.1 | 33.21% | $6.32 | $0.89 |
| Jun 2022 | 5.33 | -13.75% | $7.36 | $1.38 |
| Mar 2022 | 6.18 | 4.22% | $11.12 | $1.8 |
| Dec 2021 | 5.93 | 22.02% | $14 | $2.36 |
| Sep 2021 | 4.86 | -17.35% | $16.04 | $3.3 |
RKT Price vs fair value
You can ether set your own Fair P/E multiple or use one of the automatically calculated Fair P/E multiples.
Fair P/E calculation
PE Ratio is an attempt to estimate a fair PE ratio of a stock based on its earnings and growth rate.
This formula is a modified version of the classic Graham-Dodd Formula (V= EPS x (8.5+2g)), originally developed by Benjamin Graham, to calculate the fair price of a stock based on its earnings and growth rate.
The formula we have created is an adaptation of this approach, designed to maintain a balance between simplicity and growth sensitivity.
It is calculated using the following formula:
IF g < 5: Fair PE = b
IF g >= 5: Fair PE = m × g
Here’s what each part of the formula means:
g: Growth is calculated as the average of the three-year average EPS growth rate and the one-year EPS growth rate (annually). This approach provides a balanced measure of growth by factoring in both the long-term growth trend and the most recent annual growth performance. If one of the growth metrics is not available, the remaining metric is used to determine growth. The fair P/E value is capped at 100 to prevent distortions caused by extreme EPS growth rates, such as those resulting from large percentage increases from a low base.
m: This is the long term historical median PEG (Price/Earnings to Growth) ratio of the overall market. It serves as a benchmark, adjusting the Fair PE based on typical market conditions.
b: Base PE (static value set to 8). If the company's growth rate is less than 5, the Fair PE is set at a conservative baseline of 8. This is because declining companies generally deserve a lower PE ratio.
Fixed vs Dynamic
Fixed: The Fair PE ratio for all data points is calculated using a single, constant average EPS growth rate, determined based on the most recent period. This means that the same growth rate is applied to all historical data points. Dynamic: The Fair PE ratio for each historical data point is calculated using the trailing average EPS growth rate specific to that point in time. This means that for each data point, the corresponding trailing EPS growth rate is used, ensuring that the Fair PE ratio reflects the growth conditions that were relevant at that specific point in history.
RKT average PE ratio chart
RKT's current P/E ratio is above the 3-year historical average.
PE vs average
RKT PE vs peers
RKT's PE ratio is higher than its peer stocks COOP and PFSI.
| Stock name | PE ratio | Market cap |
|---|---|---|
| EFC Ellington Financial Inc | 8.98 | $1.19B |
| PFSI PennyMac Financial Services Inc | 14.1 | $4.96B |
| COOP Mr Cooper Group Inc | 14.44 | $8.29B |
| RKT Rocket Companies Inc | 637.5 | $25.5B |
| UWMC UWM Holdings Corp | N/A | $6.88B |
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Frequently asked questions
What is Rocket Companies's PE ratio?
The price to earnings ratio for RKT stock is 637.5 as of May 30, 2025.
What is the 3-year average PE ratio for Rocket Companies (RKT)?
As an average over the last 3 years, RKT stock has a PE ratio of 131.64.
What is the highest PE ratio for RKT?
The current P/E of 637.5 represents the highest historical value in the last five years.
How does the current PE ratio for RKT compare to its historical average?
RKT's current price to earnings ratio is 700% above its 5-year historical average.
Why is Rocket Companies's PE ratio so high?
RKT's PE ratio is high because its earnings per share (EPS) is low relative to its stock price.
How is RKT's PE ratio calculated (Rocket Companies PE ratio formula)?
To determine the PE ratio, divide the most recent stock price by the TTM earnings per share (EPS). As of today (May 30, 2025), Rocket Companies's stock price is $12.75. The earnings per share for the trailing twelve months (TTM) ending Mar 2025 is $0.02. Therefore, Rocket Companies's P/E ratio for today is 637.5. PE RATIO(637.5) = STOCK PRICE($12.75) / TTM EPS($0.02)
All PE ratio stats are based on quarterly TTM periods, unless otherwise specified.