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Should You Buy Under Armour Inc Class A (UAA) Stock Friday?

Friday, January 14, 2022 10:57 AM | InvestorsObserver Analysts

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Should You Buy Under Armour Inc Class A (UAA) Stock Friday?

Under Armour Inc Class A (UAA) receives a strong valuation ranking of 97 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. UAA has a better value than 97% 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 - 97
UAA gets a 97 Valuation Rank today. Find out what this means to you and get the rest of the rankings on UAA!

Metrics Analysis

UAA's trailing-12-month Price to Earnings (PE) ratio of 20.3 puts it above the historical average of roughly 15. UAA 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. UAA's trailing-12-month earnings per share (EPS) of 0.95 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. UAA has a 12 month forward PE to Growth (PEG) ratio of 0.97. Markets are overvaluing UAA in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 0.949999988'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

UAA's valuation metrics are adequate at its current price due to a fairly valued PEG ratio despite strong growth. UAA's PE and PEG are around the market average resulting in a average valuation score. Click Here to get the full Report on Under Armour Inc Class A (UAA) stock.

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