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Johnson Controls International PLC (JCI) Stock: How Does it Score on Valuation Metrics?

Thursday, November 03, 2022 11:42 AM | InvestorsObserver Analysts

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Johnson Controls International PLC (JCI) Stock: How Does it Score on Valuation Metrics?

InvestorsObserver gives Johnson Controls International PLC (JCI) a strong valuation score of 89 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. JCI currently holds a better value than 89% 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.

Valuation Rank - 89
JCI gets a 89 Valuation Rank today. Find out what this means to you and get the rest of the rankings on JCI!

Metrics Analysis

JCI's trailing-12-month Price to Earnings (PE) ratio of 38.9 puts it above the historical average of roughly 15. JCI is a poor value at its current trading price as investors are paying more than what its worth in relation to the company's earnings. JCI's trailing-12-month earnings per share (EPS) of 1.49 does not 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.
JCI currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 1.2. The market is currently fairly valuing JCI in relation to its projected growth due to the PEG ratio being around the fair market value of 1. JCI'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

JCI' has a adequate valuation at its current share price on account of a fairly valued PEG ratio despite strong growth. JCI's PE and PEG are around the market average leading to a average valuation score. Click Here to get the full Report on Johnson Controls International PLC (JCI) stock.

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