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Is Stellantis NV (STLA) Stock Over or Undervalued?

Thursday, August 18, 2022 09:47 AM | InvestorsObserver Analysts
Is Stellantis NV (STLA) Stock Over or Undervalued?

Stellantis NV (STLA) receives a weak valuation ranking of 3 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. STLA has a better value than 3% 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 - 3
STLA gets a 3 Valuation Rank today. Find out what this means to you and get the rest of the rankings on STLA!

Metrics Analysis

STLA's trailing-12-month Price to Earnings (PE) ratio of 2.9 puts it below the historical average of roughly 15. STLA 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. STLA's trailing-12-month earnings per share (EPS) of 5.22 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.
STLA has a 12 month forward PE to Growth (PEG) ratio of 0.08. Markets are overvaluing STLA in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 5.21999979'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

STLA' has a strong valuation at its current share price on account of a undervalued PEG ratio despite strong growth. STLA's PE and PEG are better than the market average leading to a above average valuation score. Click Here to get the full Report on Stellantis NV (STLA) stock.

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