Is Regency Centers Corp (REG) Stock Over or Undervalued?

Regency Centers Corp (REG) receives a weak valuation score of 16 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. REG 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.

REG gets a 16 Valuation Rank today. Find out what this means to you and get the rest of the rankings on REG!

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Metrics Analysis

REG has a trailing twelve month Price to Earnings (PE) ratio of 18.8. The historical average of roughly 15 shows a average value for REG stock as investors are paying fair share prices relative to the company's earnings. REG's average trailing PE ratio shows that the firm has been trading around its fair market value recently. Its trailing 12-month earnings per share (EPS) of 2.84 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. REG's 12-month-forward PE to Growth (PEG) ratio of 3.85 is considered a poor value as the market is overvaluing REG in relation to the company's projected earnings growth due. REG'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

All together these valuation metrics paint a pretty poor picture for REG at its current price due to a overvalued PEG ratio due to strong growth. The PE and PEG for REG are worse than the average of the market resulting in a valuation score of 16. Click Here to get the full Report on Regency Centers Corp (REG) stock.