Element Solutions Inc (ESI) receives a strong valuation score of 64 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. ESI holds a better value than 64% 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.
ESI gets a 64 Valuation Rank today. Find out what this means to you and get the rest of the rankings on ESI!
ESI's trailing-12-month Price to Earnings (PE) ratio of 25.7 puts it above the historical average of roughly 15. ESI 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. ESI's trailing-12-month earnings per share (EPS) of 0.18 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.
ESI has a 12 month forward PE to Growth (PEG) ratio of 1.68. Markets are overvaluing ESI in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 0.18'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 ESI at its current price due to a overvalued PEG ratio despite strong growth. The PE and PEG for ESI are worse than the average of the market resulting in a valuation score of 64.
Click Here to get the full Report on Element Solutions Inc (ESI) stock.
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