Raven Industries, Inc. (RAVN) receives a weak valuation score of 16 from InvestorsObserver's 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. RAVN holds a better value than 16% 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.
Metrics Analysis
RAVN has a trailing twelve month Price to Earnings (PE) ratio of 60.9 which places it above the histroical average of roughly 15. RAVN is currently trading at a poor value due to investors paying more than what the stock is worth in relation to its earnings. RAVN's trailing-12-month earnings per share (EPS) of 0.60 does not justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far.
RAVN currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 4.58. The market is currently overvaluing RAVN in relation to its projected growth due to the PEG ratio being above the fair market value of 1. RAVN's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.
Summary
All together these valuation metrics paint a pretty poor picture for RAVN at its current price due to a overvalued PEG ratio despite strong growth. The PE and PEG for RAVN are worse than the average of the market resulting in a valuation score of 16.
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