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Lumen Technologies Inc (LUMN) Stock: How Does it Score on Valuation Metrics?

Thursday, June 16, 2022 12:48 PM | InvestorsObserver Analysts

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Lumen Technologies Inc (LUMN) Stock: How Does it Score on Valuation Metrics?

Lumen Technologies Inc (LUMN) receives a strong valuation ranking of 82 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. LUMN has a better value than 82% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 82
LUMN gets a 82 Valuation Rank today. Find out what this means to you and get the rest of the rankings on LUMN!

Metrics Analysis

LUMN has a trailing twelve month Price to Earnings (PE) ratio of 5.1 which places it below the histroical average of roughly 15. LUMN is currently trading at a good value due to investors paying less than what the stock is worth in relation to its earnings. LUMN's trailing-12-month earnings per share (EPS) of 2.06 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.
LUMN currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 0.79. The market is currently undervaluing LUMN in relation to its projected growth due to the PEG ratio being below the fair market value of 1. LUMN'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

LUMN's valuation metrics are strong at its current price due to a undervalued PEG ratio due to strong growth. LUMN's PE and PEG are better than the market average resulting in a above average valuation score. Click Here to get the full Report on Lumen Technologies Inc (LUMN) stock.

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