Premier Inc (PINC) receives a strong valuation ranking of 92 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. PINC has a better value than 92% 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.
PINC gets a 92 Valuation Rank today. Find out what this means to you and get the rest of the rankings on PINC!
PINC has a trailing twelve month Price to Earnings (PE) ratio of 17.3. The historical average of roughly 15 shows a average value for PINC stock as investors are paying fair share prices relative to the company's earnings. PINC's average trailing PE ratio shows that the firm has been trading around its fair market value recently. Its trailing 12-month earnings per share (EPS) of 0.39 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.
PINC has a 12 month forward PE to Growth (PEG) ratio of 1.14. Markets are overvaluing PINC in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 0.39'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
All together these valuation metrics paint a pretty adequate picture for PINC at its current price due to a fairly valued PEG ratio despite strong growth. The PE and PEG for PINC are around the average of the market resulting in a valuation score of 92.
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