Aramark (ARMK) Stock: How Does it Score on Valuation Metrics?

Aramark (ARMK) receives a strong valuation ranking of 84 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. ARMK has a better value than 84% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

ARMK gets a 84 Valuation Rank today. Find out what this means to you and get the rest of the rankings on ARMK!

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Metrics Analysis

ARMK's trailing-12-month Price to Earnings (PE) ratio of 53.1 puts it above the historical average of roughly 15. ARMK is a poor value at its current trading price as investors are paying more than what its worth in relation to the company's earnings. ARMK's trailing-12-month earnings per share (EPS) of 0.76 does not justify what it is currently trading at in the market. Trailing PE ratios, however, do not factor in a company's projected growth rate, resulting in some firms having high PE ratios due to high growth potentially enticing investors even if current earnings are low. ARMK currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 0.78. The market is currently undervaluing ARMK in relation to its projected growth due to the PEG ratio being below the fair market value of 1. ARMK's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

ARMK' has a strong valuation at its current share price on account of a undervalued PEG ratio despite strong growth. ARMK's PE and PEG are better than the market average leading to a above average valuation score. Click Here to get the full Report on Aramark (ARMK) stock.