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Is Compania Cervecerias Unidas, S.A. Common Stock (CCU) Stock Over or Undervalued?

Monday, November 22, 2021 01:53 PM | InvestorsObserver Analysts
Is Compania Cervecerias Unidas, S.A. Common Stock (CCU) Stock Over or Undervalued?

Compania Cervecerias Unidas, S.A. Common Stock (CCU) receives a strong valuation ranking of 86 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. CCU has a better value than 86% 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 - 86
CCU gets a 86 Valuation Rank today. Find out what this means to you and get the rest of the rankings on CCU!

Metrics Analysis

CCU has a trailing twelve month Price to Earnings (PE) ratio of 13.2. The historical average of roughly 15 shows a average value for CCU stock as investors are paying fair share prices relative to the company's earnings. CCU'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 2.32 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. CCU's 12-month-forward PE to Growth (PEG) ratio of 0.79 is considered a good value as the market is undervaluing CCU in relation to the company's projected earnings growth. CCU'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

All together these valuation metrics paint a pretty strong picture for CCU at its current price due to a undervalued PEG ratio despite strong growth. The PE and PEG for CCU are better than the average of the market resulting in a valuation score of 86. Click Here to get the full Report on Compania Cervecerias Unidas, S.A. Common Stock (CCU) stock.

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