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Should You Buy Stellantis NV (STLA) Stock Friday?

Friday, July 01, 2022 03:28 PM | InvestorsObserver Analysts
Should You Buy Stellantis NV (STLA) Stock Friday?

InvestorsObserver gives Stellantis NV (STLA) a weak valuation score of 1 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. STLA currently holds a better value than 1% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

Valuation Rank - 1
STLA gets a 1 Valuation Rank today. Find out what this means to you and get the rest of the rankings on STLA!

Metrics Analysis

STLA's trailing-12-month Price to Earnings (PE) ratio of 2.4 puts it below the historical average of roughly 15. STLA is a good value at its current trading price as investors are paying less than what its worth in relation to the company's earnings. STLA's trailing-12-month earnings per share (EPS) of 5.13 does 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.
STLA has a 12 month forward PE to Growth (PEG) ratio of 0.08. Markets are overvaluing STLA in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 5.13000011'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

All together these valuation metrics paint a pretty strong picture for STLA at its current price due to a undervalued PEG ratio despite strong growth. The PE and PEG for STLA are better than the average of the market resulting in a valuation score of 1. Click Here to get the full Report on Stellantis NV (STLA) stock.

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