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Is Medical Properties Trust Inc (MPW) Stock Over or Undervalued?

Friday, June 23, 2023 09:51 AM | InvestorsObserver Analysts

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Is Medical Properties Trust Inc (MPW) Stock Over or Undervalued?

Medical Properties Trust Inc (MPW) receives a strong valuation score of 63 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. MPW holds a better value than 63% 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 - 63
MPW gets a 63 Valuation Rank today. Find out what this means to you and get the rest of the rankings on MPW!

Metrics Analysis

MPW's trailing-12-month Price to Earnings (PE) ratio of 17.3 puts it around the historical average of roughly 15. MPW is a average value at its current trading price as investors are paying around what its worth in relation to the company's earnings. MPW's trailing-12-month earnings per share (EPS) of 0.50 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.
MPW's 12-month-forward PE to Growth (PEG) ratio of 0.58 is considered a good value as the market is undervaluing MPW in relation to the company's projected earnings growth. MPW'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

MPW' has a strong valuation at its current share price on account of a undervalued PEG ratio despite strong growth. MPW's PE and PEG are better than the market average leading to a above average valuation score. Click Here to get the full Report on Medical Properties Trust Inc (MPW) stock.

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