Is Vontier Corp (VNT) Stock Trading Below Fair Value?

Vontier Corp (VNT) receives a strong valuation score of 81 from InvestorsObserver analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. VNT holds a better value than 81% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.

VNT gets a 81 Valuation Rank today. Find out what this means to you and get the rest of the rankings on VNT!

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Metrics Analysis

VNT has a trailing twelve month Price to Earnings (PE) ratio of 17.4. The historical average of roughly 15 shows a average value for VNT stock as investors are paying fair share prices relative to the company's earnings. VNT's average trailing PE ratio shows that the firm has been trading around its fair market value recently. Its trailing 12-month earnings per share (EPS) of 2.41 justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings. VNT currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 1.3. The market is currently overvaluing VNT in relation to its projected growth due to the PEG ratio being above the fair market value of 1. VNT's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

VNT's valuation metrics are weak at its current price due to a overvalued PEG ratio despite strong growth. VNT's PE and PEG are worse than the market average resulting in a below average valuation score. Click Here to get the full Report on Vontier Corp (VNT) stock.