InvestorsObserver
×
News Home

Should You Buy Sabra Health Care REIT Inc (SBRA) Stock Friday?

Friday, March 22, 2024 10:46 AM | InvestorsObserver Analysts

Mentioned in this article

Should You Buy Sabra Health Care REIT Inc (SBRA) Stock Friday?

Sabra Health Care REIT Inc (SBRA) receives a weak valuation ranking of 8 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. SBRA has a better value than 8% 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.

Valuation Rank - 8
SBRA gets a 8 Valuation Rank today. Find out what this means to you and get the rest of the rankings on SBRA!

Metrics Analysis

SBRA has a trailing twelve month Price to Earnings (PE) ratio of 236.67. The historical average of roughly 15 shows a poor value for SBRA stock as investors are paying higher share prices relative to the company's earnings. SBRA's high trailing PE ratio shows that the firm has been trading above its fair market value recently. Its trailing 12-month earnings per share (EPS) of 0.07 does not justify 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.
SBRA has a 12 month forward PE to Growth (PEG) ratio of 5.16. Markets are overvaluing SBRA in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 0.07'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

SBRA' has a weak valuation at its current share price on account of a overvalued PEG ratio despite strong growth. SBRA'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 Sabra Health Care REIT Inc (SBRA) stock.

You May Also Like

Get the InvestorsObserver App

InvestorsObserver App
iOS App Android App