InvestorsObserver
×
News Home

Is Lufax Holding Ltd - ADR (LU) Stock Trading Below Fair Value?

Wednesday, October 04, 2023 12:43 PM | InvestorsObserver Analysts

Mentioned in this article

Is Lufax Holding Ltd - ADR (LU) Stock Trading Below Fair Value?

Lufax Holding Ltd - ADR (LU) receives a strong valuation score of 67 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. LU holds a better value than 67% 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 - 67
LU gets a 67 Valuation Rank today. Find out what this means to you and get the rest of the rankings on LU!

Metrics Analysis

LU has a trailing twelve month Price to Earnings (PE) ratio of 0.43. The historical average of roughly 15 shows a good value for LU stock as investors are paying lower share prices relative to the company's earnings. LU's low trailing PE ratio shows that the firm has been trading below its fair market value recently. Its trailing 12-month earnings per share (EPS) of 7.60 more than 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.
LU has a 12 month forward PE to Growth (PEG) ratio of 1.59. Markets are overvaluing LU in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 7.6'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

LU' has a weak valuation at its current share price on account of a overvalued PEG ratio due to strong growth. LU'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 Lufax Holding Ltd - ADR (LU) stock.

You May Also Like

Get the InvestorsObserver App

InvestorsObserver App
iOS App Android App