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

Tuesday, March 26, 2024 02:55 PM | InvestorsObserver Analysts

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

Johnson Controls International PLC (JCI) receives a strong valuation score of 66 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. JCI holds a better value than 66% 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.

Valuation Rank - 66
JCI gets a 66 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 20.04 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 3.07 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 has a 12 month forward PE to Growth (PEG) ratio of 1.61. Markets are overvaluing JCI in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 3.07'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

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

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