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Is Servicemaster Global Holdings Inc (SERV) Stock Trading Below Fair Value?

Friday, September 25, 2020 12:00 PM | InvestorsObserver Analysts

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Is Servicemaster Global Holdings Inc (SERV) Stock Trading Below Fair Value?

Servicemaster Global Holdings Inc (SERV) receives a weak valuation ranking of 13 from InvestorsObserver's data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. SERV has a better value than 13% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 13
SERV gets a 13 Valuation Rank today. Find out what this means to you and get the rest of the rankings on SERV!

Metrics Analysis

SERV's trailing-12-month Price to Earnings (PE) ratio of 77.6 puts it above the historical average of roughly 15. SERV 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. SERV's trailing-12-month earnings per share (EPS) of 0.50 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.

SERV has a 12 month forward PE to Growth (PEG) ratio of 6.66. Markets are undervaluing SERV in relation to its projected growth as its PEG ratio is currently below the fair market value of 1. 0.5'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

SERV' has a weak valuation at its current share price on account of a overvalued PEG ratio despite strong growth. SERV's PE and PEG are worse than the market average leading to a below average valuation score.

Click Here to get the full Stock Score Report on Servicemaster Global Holdings Inc (SERV) Stock.

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