II-VI, Inc. (IIVI) Stock: How Does it Score on Valuation Metrics?

Wednesday, September 07, 2022 02:04 PM | InvestorsObserver Analysts

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II-VI, Inc. (IIVI) Stock: How Does it Score on Valuation Metrics?

II-VI, Inc. (IIVI) receives a strong valuation score of 96 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. IIVI holds a better value than 96% 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.

IIVI gets a 96 Valuation Rank today. Find out what this means to you and get the rest of the rankings on IIVI!

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Metrics Analysis

IIVI has a trailing twelve month Price to Earnings (PE) ratio of 30.3. The historical average of roughly 15 shows a poor value for IIVI stock as investors are paying higher share prices relative to the company's earnings. IIVI's high trailing PE ratio shows that the firm has been trading above its fair market value recently. Its trailing 12-month earnings per share (EPS) of 1.45 does not justify 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. IIVI has a 12 month forward PE to Growth (PEG) ratio of 1.06. Markets are overvaluing IIVI in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 1.45000004'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

IIVI's valuation metrics are adequate at its current price due to a fairly valued PEG ratio despite strong growth. IIVI's PE and PEG are around the market average resulting in a average valuation score. Click Here to get the full Report on II-VI, Inc. (IIVI) stock.