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Baidu Inc (BIDU) Stock: How Does it Score on Fundamental Metrics?

Wednesday, October 05, 2022 02:20 PM | InvestorsObserver Analysts
Baidu Inc (BIDU) Stock: How Does it Score on Fundamental Metrics?

Baidu Inc (BIDU) receives a strong valuation ranking of 91 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. BIDU has a better value than 91% 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.

Valuation Rank - 91
BIDU gets a 91 Valuation Rank today. Find out what this means to you and get the rest of the rankings on BIDU!

Metrics Analysis

BIDU's trailing-12-month Price to Earnings (PE) ratio of 34.1 puts it above the historical average of roughly 15. BIDU 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. BIDU's trailing-12-month earnings per share (EPS) of 1.01 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.
BIDU's 12-month-forward PE to Growth (PEG) ratio of 0.88 is considered a roughly average value as the market is valuing BIDU right in line with its projected earnings growth. BIDU's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.

Summary

All together these valuation metrics paint a pretty adequate picture for BIDU at its current price due to a fairly valued PEG ratio despite strong growth. The PE and PEG for BIDU are around the average of the market resulting in a valuation score of 91. Click Here to get the full Report on Baidu Inc (BIDU) stock.

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