Hexcel Corporation (HXL) receives a weak valuation score of 14 from InvestorsObserver's 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. HXL holds a better value than 14% 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.
HXL has a trailing twelve month Price to Earnings (PE) ratio of 15.1. The historical average of roughly 15 shows a average value for HXL stock as investors are paying fair share prices relative to the company's earnings. HXL's average trailing PE ratio shows that the firm has been trading around its fair market value recently. Its trailing 12-month earnings per share (EPS) of 2.28 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.
HXL currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 6.4. The market is currently overvaluing HXL in relation to its projected growth due to the PEG ratio being above the fair market value of 1. HXL's PEG comes from its forward price to earnings ratio being divided by its growth rate. Due to the inclusion of more fundamentals of a company's overall health and a focus on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.
HXL' has a weak valuation at its current share price on account of a overvalued PEG ratio due to strong growth. HXL's PE and PEG are worse than the market average leading to a below average valuation score.