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Should You Buy Aptiv PLC (APTV) Stock Monday?

Monday, November 28, 2022 01:02 PM | InvestorsObserver Analysts

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Should You Buy Aptiv PLC (APTV) Stock Monday?

Aptiv PLC (APTV) receives a weak valuation score of 29 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. APTV holds a better value than 29% 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 - 29
APTV gets a 29 Valuation Rank today. Find out what this means to you and get the rest of the rankings on APTV!

Metrics Analysis

APTV's trailing-12-month Price to Earnings (PE) ratio of 93.9 puts it above the historical average of roughly 15. APTV 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. APTV's trailing-12-month earnings per share (EPS) of 1.14 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.
APTV currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 2.9. The market is currently overvaluing APTV in relation to its projected growth due to the PEG ratio being above the fair market value of 1. APTV'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

APTV' has a weak valuation at its current share price on account of a overvalued PEG ratio despite strong growth. APTV'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 Aptiv PLC (APTV) stock.

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