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Is Kroger Co (KR) Stock Trading Below Fair Value?

Monday, November 28, 2022 12:32 PM | InvestorsObserver Analysts
Is Kroger Co (KR) Stock Trading Below Fair Value?

Kroger Co (KR) receives a strong valuation ranking of 100 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. KR has a better value than 100% 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 - 100
KR gets a 100 Valuation Rank today. Find out what this means to you and get the rest of the rankings on KR!

Metrics Analysis

KR has a trailing twelve month Price to Earnings (PE) ratio of 14.7. The historical average of roughly 15 shows a average value for KR stock as investors are paying fair share prices relative to the company's earnings. KR'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 3.28 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.
KR's 12-month-forward PE to Growth (PEG) ratio of 1.01 is considered a roughly average value as the market is valuing KR right in line with its projected earnings growth. KR'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

KR' has a adequate valuation at its current share price on account of a fairly valued PEG ratio despite strong growth. KR's PE and PEG are around the market average leading to a average valuation score. Click Here to get the full Report on Kroger Co (KR) stock.

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