Petroleo Brasileiro ADR Reptg 2 (PBR) receives a weak valuation ranking of 9 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. PBR has a better value than 9% 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.
PBR gets a 9 Valuation Rank today. Find out what this means to you and get the rest of the rankings on PBR!
PBR has a trailing twelve month Price to Earnings (PE) ratio of 2.6. The historical average of roughly 15 shows a good value for PBR stock as investors are paying lower share prices relative to the company's earnings. PBR'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 0.94 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.
PBR's 12-month-forward PE to Growth (PEG) ratio of 0.16 is considered a good value as the market is undervaluing PBR in relation to the company's projected earnings growth. PBR'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.
All together these valuation metrics paint a pretty strong picture for PBR at its current price due to a undervalued PEG ratio despite strong growth. The PE and PEG for PBR are better than the average of the market resulting in a valuation score of 9.
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