LHC Group Inc (LHCG) Stock: How Does it Score on Valuation Metrics?

Friday, February 10, 2023 02:49 PM | InvestorsObserver Analysts

Mentioned in this article

LHC Group Inc (LHCG) Stock: How Does it Score on Valuation Metrics?

InvestorsObserver gives LHC Group Inc (LHCG) a weak valuation score of 1 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. LHCG currently holds a better value than 1% 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.

LHCG gets a 1 Valuation Rank today. Find out what this means to you and get the rest of the rankings on LHCG!

See Full LHCG Report

Metrics Analysis

LHCG's trailing-12-month Price to Earnings (PE) ratio of 77.1 puts it above the historical average of roughly 15. LHCG 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. LHCG's trailing-12-month earnings per share (EPS) of 2.06 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. LHCG has a 12 month forward PE to Growth (PEG) ratio of 21.2. Markets are overvaluing LHCG in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 2.06'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

LHCG's valuation metrics are weak at its current price due to a overvalued PEG ratio due to strong growth. LHCG'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 LHC Group Inc (LHCG) stock.