Is Corning Incorporated (GLW) Stock Over or Undervalued?

InvestorsObserver gives Corning Incorporated (GLW) a strong valuation score of 97 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. GLW currently holds a better value than 97% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

GLW gets a 97 Valuation Rank today. Find out what this means to you and get the rest of the rankings on GLW!

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Metrics Analysis

GLW has a trailing twelve month Price to Earnings (PE) ratio of 39.4. The historical average of roughly 15 shows a poor value for GLW stock as investors are paying higher share prices relative to the company's earnings. GLW'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 0.98 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. GLW has a 12 month forward PE to Growth (PEG) ratio of 0.95. Markets are overvaluing GLW in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 0.980000019'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

All together these valuation metrics paint a pretty adequate picture for GLW at its current price due to a fairly valued PEG ratio despite strong growth. The PE and PEG for GLW are around the average of the market resulting in a valuation score of 97. Click Here to get the full Report on Corning Incorporated (GLW) stock.