Is Under Armour Inc Class A (UAA) Stock Trading Below Fair Value?

InvestorsObserver gives Under Armour Inc Class A (UAA) a strong valuation score of 95 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. UAA currently holds a better value than 95% 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.

UAA gets a 95 Valuation Rank today. Find out what this means to you and get the rest of the rankings on UAA!

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Metrics Analysis

UAA has a trailing twelve month Price to Earnings (PE) ratio of 22.2 which places it above the histroical average of roughly 15. UAA is currently trading at a poor value due to investors paying more than what the stock is worth in relation to its earnings. UAA's trailing-12-month earnings per share (EPS) of 0.95 does not 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. UAA's 12-month-forward PE to Growth (PEG) ratio of 1.09 is considered a roughly average value as the market is valuing UAA right in line with its projected earnings growth. UAA's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.

Summary

All together these valuation metrics paint a pretty adequate picture for UAA at its current price due to a fairly valued PEG ratio despite strong growth. The PE and PEG for UAA are around the average of the market resulting in a valuation score of 95. Click Here to get the full Report on Under Armour Inc Class A (UAA) stock.