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Should You Buy Portland General Electric Company (POR) Stock Wednesday?

Wednesday, May 18, 2022 10:36 AM | InvestorsObserver Analysts

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Should You Buy Portland General Electric Company (POR) Stock Wednesday?

Portland General Electric Company (POR) receives a weak valuation score of 13 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. POR holds a better value than 13% 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 - 13
POR gets a 13 Valuation Rank today. Find out what this means to you and get the rest of the rankings on POR!

Metrics Analysis

POR's trailing-12-month Price to Earnings (PE) ratio of 20.5 puts it above the historical average of roughly 15. POR 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. POR's trailing-12-month earnings per share (EPS) of 2.33 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.
POR currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 4.15. The market is currently overvaluing POR in relation to its projected growth due to the PEG ratio being above the fair market value of 1. POR'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

All together these valuation metrics paint a pretty poor picture for POR at its current price due to a overvalued PEG ratio due to strong growth. The PE and PEG for POR are worse than the average of the market resulting in a valuation score of 13. Click Here to get the full Report on Portland General Electric Company (POR) stock.

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