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Is Jacobs Engineering Group Inc (J) Stock Trading Below Fair Value?

Thursday, September 01, 2022 03:08 PM | InvestorsObserver Analysts

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Is Jacobs Engineering Group Inc (J) Stock Trading Below Fair Value?

Jacobs Engineering Group Inc (J) receives a strong valuation ranking of 70 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. J has a better value than 70% 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 - 70
J gets a 70 Valuation Rank today. Find out what this means to you and get the rest of the rankings on J!

Metrics Analysis

J's trailing-12-month Price to Earnings (PE) ratio of 37.6 puts it above the historical average of roughly 15. J 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. J's trailing-12-month earnings per share (EPS) of 3.56 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.
J has a 12 month forward PE to Growth (PEG) ratio of 1.56. Markets are overvaluing J in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 3.55999994'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

J' has a weak valuation at its current share price on account of a overvalued PEG ratio despite strong growth. J's PE and PEG are worse than the market average leading to a below average valuation score. Click Here to get the full Report on Jacobs Engineering Group Inc (J) stock.

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