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Is Air Products & Chemicals, Inc. (APD) Stock Over or Undervalued?

Friday, July 23, 2021 02:08 PM | InvestorsObserver Analysts

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Is Air Products & Chemicals, Inc. (APD) Stock Over or Undervalued?

Air Products & Chemicals, Inc. (APD) receives a weak valuation ranking of 37 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. APD has a better value than 37% 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.

Valuation Rank - 37
APD gets a 37 Valuation Rank today. Find out what this means to you and get the rest of the rankings on APD!

Metrics Analysis

APD's trailing-12-month Price to Earnings (PE) ratio of 33.9 puts it above the historical average of roughly 15. APD 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. APD's trailing-12-month earnings per share (EPS) of 8.50 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. APD currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 2.77. The market is currently overvaluing APD in relation to its projected growth due to the PEG ratio being above the fair market value of 1. APD'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

All together these valuation metrics paint a pretty poor picture for APD at its current price due to a overvalued PEG ratio despite strong growth. The PE and PEG for APD are worse than the average of the market resulting in a valuation score of 37. Click Here to get the full Report on Air Products & Chemicals, Inc. (APD) stock.

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