InvestorsObserver gives Associated Banc Corp (ASB) a strong valuation score of 72 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. ASB currently holds a better value than 72% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.
Metrics Analysis
ASB's trailing-12-month Price to Earnings (PE) ratio of 9.8 puts it below the historical average of roughly 15. ASB is a good value at its current trading price as investors are paying less than what its worth in relation to the company's earnings. ASB's trailing-12-month earnings per share (EPS) of 2.18 does 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.
ASB currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 1.54. The market is currently overvaluing ASB in relation to its projected growth due to the PEG ratio being above the fair market value of 1. ASB'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
ASB's valuation metrics are weak at its current price due to a overvalued PEG ratio due to strong growth. ASB's PE and PEG are worse than the market average resulting in a below average valuation score.
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