Is Venator Materials PLC (VNTR) Stock Trading Below Fair Value?

Wednesday, September 21, 2022 01:30 PM | InvestorsObserver Analysts

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Is Venator Materials PLC (VNTR) Stock Trading Below Fair Value?

InvestorsObserver gives Venator Materials PLC (VNTR) a strong valuation score of 66 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. VNTR currently holds a better value than 66% 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.

VNTR gets a 66 Valuation Rank today. Find out what this means to you and get the rest of the rankings on VNTR!

See Full VNTR Report

Metrics Analysis

VNTR has a trailing twelve month Price to Earnings (PE) ratio of 2.3 which places it below the histroical average of roughly 15. VNTR is currently trading at a good value due to investors paying less than what the stock is worth in relation to its earnings. VNTR's trailing-12-month earnings per share (EPS) of 0.52 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. VNTR's 12-month-forward PE to Growth (PEG) ratio of 1.62 is considered a poor value as the market is overvaluing VNTR in relation to the company's projected earnings growth due. VNTR'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 poor picture for VNTR at its current price due to a overvalued PEG ratio due to strong growth. The PE and PEG for VNTR are worse than the average of the market resulting in a valuation score of 66. Click Here to get the full Report on Venator Materials PLC (VNTR) stock.