AEGON N.V. (AEG) receives a strong valuation ranking of 88 from InvestorsObserver's data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. AEG 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.
Metrics Analysis
AEG has a trailing twelve month Price to Earnings (PE) ratio of 5.1. The historical average of roughly 15 shows a good value for AEG stock as investors are paying lower share prices relative to the company's earnings. AEG'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 0.33 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.
AEG's 12-month-forward PE to Growth (PEG) ratio of 0.79 is considered a good value as the market is undervaluing AEG in relation to the company's projected earnings growth. AEG's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.
Summary
AEG' has a strong valuation at its current share price on account of a undervalued PEG ratio due to strong growth. AEG's PE and PEG are better than the market average leading to a above average valuation score.
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