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Is Signet Jewelers Ltd (SIG) Stock Over or Undervalued?

Monday, November 27, 2023 11:29 AM | InvestorsObserver Analysts

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Is Signet Jewelers Ltd (SIG) Stock Over or Undervalued?

Signet Jewelers Ltd (SIG) receives a strong valuation score of 98 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. SIG holds a better value than 98% 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.

Valuation Rank - 98
SIG gets a 98 Valuation Rank today. Find out what this means to you and get the rest of the rankings on SIG!

Metrics Analysis

SIG's trailing-12-month Price to Earnings (PE) ratio of 7.67 puts it below the historical average of roughly 15. SIG is a good value at its current trading price as investors are paying less than what its worth in relation to the company's earnings. SIG's trailing-12-month earnings per share (EPS) of 9.12 does 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.
SIG currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 1.03. The market is currently fairly valuing SIG in relation to its projected growth due to the PEG ratio being around the fair market value of 1. SIG'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

SIG's valuation metrics are adequate at its current price due to a fairly valued PEG ratio due to strong growth. SIG's PE and PEG are around the market average resulting in a average valuation score. Click Here to get the full Report on Signet Jewelers Ltd (SIG) stock.

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