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Baozun Inc (BZUN) Stock: How Does it Score on Valuation Metrics?

Thursday, January 20, 2022 03:37 PM | InvestorsObserver Analysts
Baozun Inc (BZUN) Stock: How Does it Score on Valuation Metrics?

Baozun Inc (BZUN) receives a weak valuation score of 30 from InvestorsObserver analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. BZUN holds a better value than 30% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.

Valuation Rank - 30
BZUN gets a 30 Valuation Rank today. Find out what this means to you and get the rest of the rankings on BZUN!

Metrics Analysis

BZUN has a trailing twelve month Price to Earnings (PE) ratio of 33.1. The historical average of roughly 15 shows a poor value for BZUN stock as investors are paying higher share prices relative to the company's earnings. BZUN's high trailing PE ratio shows that the firm has been trading above its fair market value recently. Its trailing 12-month earnings per share (EPS) of 0.85 does not justify the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings. BZUN currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 0.34. The market is currently undervaluing BZUN in relation to its projected growth due to the PEG ratio being below the fair market value of 1. BZUN'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

BZUN' has a strong valuation at its current share price on account of a undervalued PEG ratio despite strong growth. BZUN'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 Baozun Inc (BZUN) stock.

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