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Is Physicians Realty Trust (DOC) Stock Trading Below Fair Value?

Tuesday, November 07, 2023 12:37 PM | InvestorsObserver Analysts

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Is Physicians Realty Trust (DOC) Stock Trading Below Fair Value?

InvestorsObserver gives Physicians Realty Trust (DOC) 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. DOC 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.

Valuation Rank - 62
DOC gets a 62 Valuation Rank today. Find out what this means to you and get the rest of the rankings on DOC!

Metrics Analysis

DOC's trailing-12-month Price to Earnings (PE) ratio of 60.41 puts it above the historical average of roughly 15. DOC 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. DOC's trailing-12-month earnings per share (EPS) of 0.19 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.
DOC has a 12 month forward PE to Growth (PEG) ratio of 1.66. Markets are overvaluing DOC in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 0.19'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

DOC's valuation metrics are weak at its current price due to a overvalued PEG ratio despite strong growth. DOC's PE and PEG are worse than the market average resulting in a below average valuation score. Click Here to get the full Report on Physicians Realty Trust (DOC) stock.

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