InvestorsObserver gives Metlife Inc (MET) a strong valuation score of 62 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. MET currently holds a better value than 62% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.
Metrics Analysis
MET has a trailing twelve month Price to Earnings (PE) ratio of 4.9 which places it below the histroical average of roughly 15. MET is currently trading at a good value due to investors paying less than what the stock is worth in relation to its earnings. MET's trailing-12-month earnings per share (EPS) of 7.73 does justify its share price in the market. Trailing PE ratios don't factor in the company's projected growth rate, resulting in select firms having high PE ratios due to high growth potential enticing investors even when the underlying company has produced low earnings to date.
MET has a 12 month forward PE to Growth (PEG) ratio of 2.25. Markets are undervaluing MET in relation to its projected growth as its PEG ratio is currently below the fair market value of 1. 7.73000001'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
All together these valuation metrics paint a pretty poor picture for MET at its current price due to a overvalued PEG ratio due to strong growth. The PE and PEG for MET are worse than the average of the market resulting in a valuation score of 62.
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