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Should You Buy Vulcan Materials Company (VMC) Stock Monday?

Monday, November 20, 2023 03:20 PM | InvestorsObserver Analysts

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Should You Buy Vulcan Materials Company (VMC) Stock Monday?

Vulcan Materials Company (VMC) receives a strong valuation ranking of 80 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. VMC has a better value than 80% 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 - 80
VMC gets a 80 Valuation Rank today. Find out what this means to you and get the rest of the rankings on VMC!

Metrics Analysis

VMC has a trailing twelve month Price to Earnings (PE) ratio of 33.86. The historical average of roughly 15 shows a poor value for VMC stock as investors are paying higher share prices relative to the company's earnings. VMC'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 6.17 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.
VMC has a 12 month forward PE to Growth (PEG) ratio of 1.33. Markets are overvaluing VMC in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 6.17'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

VMC's valuation metrics are weak at its current price due to a overvalued PEG ratio despite strong growth. VMC's PE and PEG are worse than the market average resulting in a below average valuation score. Click Here to get the full Report on Vulcan Materials Company (VMC) stock.

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