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Is SBA Communications Corp (SBAC) Stock Trading Below Fair Value?

Monday, March 25, 2024 02:53 PM | InvestorsObserver Analysts

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Is SBA Communications Corp (SBAC) Stock Trading Below Fair Value?

InvestorsObserver gives SBA Communications Corp (SBAC) a strong valuation score of 79 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. SBAC currently holds a better value than 79% 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 - 79
SBAC gets a 79 Valuation Rank today. Find out what this means to you and get the rest of the rankings on SBAC!

Metrics Analysis

SBAC's trailing-12-month Price to Earnings (PE) ratio of 46.36 puts it above the historical average of roughly 15. SBAC 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. SBAC's trailing-12-month earnings per share (EPS) of 4.54 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.
SBAC has a 12 month forward PE to Growth (PEG) ratio of 1.32. Markets are overvaluing SBAC in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 4.54'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

SBAC's valuation metrics are weak at its current price due to a overvalued PEG ratio despite strong growth. SBAC'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 SBA Communications Corp (SBAC) stock.

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