News Home
Is Sirius XM Holdings Inc (SIRI) Stock Over or Undervalued?
Monday, April 01, 2024 10:54 AM | InvestorsObserver Analysts
InvestorsObserver gives Sirius XM Holdings Inc (SIRI) a strong valuation score of 80 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. SIRI currently holds a better value than 80% 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.
SIRI gets a 80 Valuation Rank today. Find out what this means to you and get the rest of the rankings on SIRI!
Metrics Analysis
SIRI has a trailing twelve month Price to Earnings (PE) ratio of 12.37 which places it around the histroical average of roughly 15. SIRI is currently trading at a average value due to investors paying around what the stock is worth in relation to its earnings. SIRI's trailing-12-month earnings per share (EPS) of 0.32 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.
SIRI has a 12 month forward PE to Growth (PEG) ratio of 1.31. Markets are overvaluing SIRI in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 0.32'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
SIRI' has a weak valuation at its current share price on account of a overvalued PEG ratio due to strong growth. SIRI's PE and PEG are worse than the market average leading to a below average valuation score.
Click Here to get the full Report on Sirius XM Holdings Inc (SIRI) stock.
Stay In The Know
Subscribe to our daily morning update newsletter and never miss out on the need-to-know market news, movements, and more.
Thank you for signing up! You're all set to receive the Morning Update newsletter
You May Also Like
