Crocs, Inc. (CROX) receives a strong valuation ranking of 86 from InvestorsObserver's data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. CROX has a better value than 86% 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.
Metrics Analysis
CROX has a trailing twelve month Price to Earnings (PE) ratio of 23.5 which places it above the histroical average of roughly 15. CROX is currently trading at a poor value due to investors paying more than what the stock is worth in relation to its earnings. CROX's trailing-12-month earnings per share (EPS) of 1.78 does not justify its share price in the market. Trailing PE ratios don't factor in the company's projected growth rate, resulting in select firms having high PE ratios due to high growth potential enticing investors even when the underlying company has produced low earnings to date.
CROX has a 12 month forward PE to Growth (PEG) ratio of 1.36. Markets are undervaluing CROX in relation to its projected growth as its PEG ratio is currently below the fair market value of 1. 1.77999997'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.
Summary
All together these valuation metrics paint a pretty poor picture for CROX at its current price due to a overvalued PEG ratio despite strong growth. The PE and PEG for CROX are worse than the average of the market resulting in a valuation score of 86.
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