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PagSeguro Digital Ltd (PAGS) Stock: How Does it Score on Fundamental Metrics?

Monday, March 20, 2023 11:09 AM | InvestorsObserver Analysts

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PagSeguro Digital Ltd (PAGS) Stock: How Does it Score on Fundamental Metrics?

PagSeguro Digital Ltd (PAGS) receives a strong valuation score of 98 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. PAGS holds a better value than 98% 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 - 98
PAGS gets a 98 Valuation Rank today. Find out what this means to you and get the rest of the rankings on PAGS!

Metrics Analysis

PAGS has a trailing twelve month Price to Earnings (PE) ratio of 9.3. The historical average of roughly 15 shows a good value for PAGS stock as investors are paying lower share prices relative to the company's earnings. PAGS's low trailing PE ratio shows that the firm has been trading below its fair market value recently. Its trailing 12-month earnings per share (EPS) of 0.89 more than 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.
PAGS's 12-month-forward PE to Growth (PEG) ratio of 0.97 is considered a roughly average value as the market is valuing PAGS right in line with its projected earnings growth. PAGS's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.

Summary

PAGS's valuation metrics are adequate at its current price due to a fairly valued PEG ratio due to strong growth. PAGS's PE and PEG are around the market average resulting in a average valuation score. Click Here to get the full Report on PagSeguro Digital Ltd (PAGS) stock.

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