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EV Stock Surges 5.25% Thursday: Should You Buy Niu Technologies - ADR (NIU)?

Thursday, August 25, 2022 10:11 AM | InvestorsObserver Analysts

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EV Stock Surges 5.25% Thursday: Should You Buy Niu Technologies - ADR (NIU)?

EV stock NIU is higher by 5.25% Thursday. InvestorsObserver gives Niu Technologies - ADR (NIU) a strong valuation score of 80 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. NIU currently holds a better value than 80% 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.

Valuation Rank - 80
NIU gets a 80 Valuation Rank today. Find out what this means to you and get the rest of the rankings on NIU!

Metrics Analysis

NIU's trailing-12-month Price to Earnings (PE) ratio of 29.5 puts it above the historical average of roughly 15. NIU 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. NIU's trailing-12-month earnings per share (EPS) of 0.28 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.
NIU currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 1.37. The market is currently overvaluing NIU in relation to its projected growth due to the PEG ratio being above the fair market value of 1. NIU'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

NIU' has a weak valuation at its current share price on account of a overvalued PEG ratio despite strong growth. NIU's PE and PEG are worse than the market average leading to a below average valuation score. Click Here to get the full Report on Niu Technologies - ADR (NIU) stock.

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