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Under Armour Inc Class A (UAA) Stock: How Does it Score on Valuation Metrics?

Monday, November 27, 2023 02:26 PM | InvestorsObserver Analysts

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Under Armour Inc Class A (UAA) Stock: How Does it Score on Valuation Metrics?

InvestorsObserver gives Under Armour Inc Class A (UAA) a strong valuation score of 64 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. UAA currently holds a better value than 64% 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 - 64
UAA gets a 64 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 8.18 puts it below the historical average of roughly 15. UAA 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. UAA's trailing-12-month earnings per share (EPS) of 0.53 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.
UAA's 12-month-forward PE to Growth (PEG) ratio of 1.67 is considered a poor value as the market is overvaluing UAA in relation to the company's projected earnings growth due. UAA's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.

Summary

UAA' has a weak valuation at its current share price on account of a overvalued PEG ratio due to strong growth. UAA'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 Under Armour Inc Class A (UAA) stock.

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