Essent Group Ltd (ESNT) receives a strong valuation ranking of 88 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. ESNT has a better value than 88% 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.
ESNT gets a 88 Valuation Rank today. Find out what this means to you and get the rest of the rankings on ESNT!
ESNT has a trailing twelve month Price to Earnings (PE) ratio of 9.1. The historical average of roughly 15 shows a good value for ESNT stock as investors are paying lower share prices relative to the company's earnings. ESNT's low trailing PE ratio shows that the firm has been trading below its fair market value recently. Its trailing 12-month earnings per share (EPS) of 4.85 more than justifies 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.
ESNT has a 12 month forward PE to Growth (PEG) ratio of 0.82. Markets are overvaluing ESNT in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 4.8499999'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.
ESNT' has a adequate valuation at its current share price on account of a fairly valued PEG ratio despite strong growth. ESNT's PE and PEG are around the market average leading to a average valuation score.
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