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Is Signet Jewelers Ltd. (SIG) Stock Trading Below Fair Value?

Wednesday, November 16, 2022 02:30 PM | InvestorsObserver Analysts

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Is Signet Jewelers Ltd. (SIG) Stock Trading Below Fair Value?

InvestorsObserver gives Signet Jewelers Ltd. (SIG) a strong valuation score of 81 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. SIG currently holds a better value than 81% 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 - 81
SIG gets a 81 Valuation Rank today. Find out what this means to you and get the rest of the rankings on SIG!

Metrics Analysis

SIG has a trailing twelve month Price to Earnings (PE) ratio of 8.8 which places it below the histroical average of roughly 15. SIG is currently trading at a good value due to investors paying less than what the stock is worth in relation to its earnings. SIG's trailing-12-month earnings per share (EPS) of 7.09 does 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.
SIG has a 12 month forward PE to Growth (PEG) ratio of 0.74. Markets are overvaluing SIG in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 7.09'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

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

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