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Is Eversource Energy (ES) Stock Trading Below Fair Value?

Tuesday, October 19, 2021 10:53 AM | InvestorsObserver Analysts
Is Eversource Energy (ES) Stock Trading Below Fair Value?

Eversource Energy (ES) receives a weak valuation ranking of 24 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. ES has a better value than 24% 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 - 24
ES gets a 24 Valuation Rank today. Find out what this means to you and get the rest of the rankings on ES!

Metrics Analysis

ES's trailing-12-month Price to Earnings (PE) ratio of 23.5 puts it above the historical average of roughly 15. ES 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. ES's trailing-12-month earnings per share (EPS) of 3.63 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. ES's 12-month-forward PE to Growth (PEG) ratio of 3.56 is considered a poor value as the market is overvaluing ES in relation to the company's projected earnings growth due. ES'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

ES's valuation metrics are weak at its current price due to a overvalued PEG ratio due to strong growth. ES's PE and PEG are worse than the market average resulting in a below average valuation score. Click Here to get the full Report on Eversource Energy (ES) stock.

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