Orange SA (ORAN) receives a strong valuation ranking of 73 from InvestorsObserver's data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. ORAN has a better value than 73% 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.
Metrics Analysis
ORAN has a trailing twelve month Price to Earnings (PE) ratio of 11 which places it around the histroical average of roughly 15. ORAN is currently trading at a average value due to investors paying around what the stock is worth in relation to its earnings. ORAN's trailing-12-month earnings per share (EPS) of 0.71 does justify its share price in the market. Trailing PE ratios don't factor in the company's projected growth rate, resulting in select firms having high PE ratios due to high growth potential enticing investors even when the underlying company has produced low earnings to date.
ORAN's 12-month-forward PE to Growth (PEG) ratio of 1.74 is considered a poor value as the market is overvaluing ORAN in relation to the company's projected earnings growth due. ORAN'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
ORAN' has a weak valuation at its current share price on account of a overvalued PEG ratio due to strong growth. ORAN's PE and PEG are worse than the market average leading to a below average valuation score.
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