InvestorsObserver gives CommVault Systems, Inc. (CVLT) a weak valuation score of 8 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. CVLT currently holds a better value than 8% 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.
CVLT's trailing-12-month Price to Earnings (PE) ratio of -97.1 puts it below the historical average of roughly 15. CVLT 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. CVLT's trailing-12-month earnings per share (EPS) of -0.65 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.
CVLT has a 12 month forward PE to Growth (PEG) ratio of 8.62. Markets are undervaluing CVLT in relation to its projected growth as its PEG ratio is currently below the fair market value of 1. -0.649999976's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.
CVLT's valuation metrics are weak at its current price due to a overvalued PEG ratio due to strong growth. CVLT's PE and PEG are worse than the market average resulting in a below average valuation score.