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Is CRH PLC (CRH) Stock Over or Undervalued?

Thursday, June 23, 2022 02:44 PM | InvestorsObserver Analysts
Is CRH PLC (CRH) Stock Over or Undervalued?

CRH PLC (CRH) receives a strong valuation score of 93 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. CRH holds a better value than 93% 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.

Valuation Rank - 93
CRH gets a 93 Valuation Rank today. Find out what this means to you and get the rest of the rankings on CRH!

Metrics Analysis

CRH's trailing-12-month Price to Earnings (PE) ratio of 10.7 puts it around the historical average of roughly 15. CRH is a average value at its current trading price as investors are paying around what its worth in relation to the company's earnings. CRH's trailing-12-month earnings per share (EPS) of 3.46 does 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.
CRH's 12-month-forward PE to Growth (PEG) ratio of 0.92 is considered a roughly average value as the market is valuing CRH right in line with its projected earnings growth. CRH'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 adequate picture for CRH at its current price due to a fairly valued PEG ratio despite strong growth. The PE and PEG for CRH are around the average of the market resulting in a valuation score of 93. Click Here to get the full Report on CRH PLC (CRH) stock.

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