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What do the Fundamentals Predict for Ensign Group Inc (ENSG) Stock?

Thursday, October 28, 2021 10:41 AM | InvestorsObserver Analysts
What do the Fundamentals Predict for Ensign Group Inc (ENSG) Stock?

Ensign Group Inc (ENSG) receives a strong valuation ranking of 81 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. ENSG has a better value than 81% 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 - 81
ENSG gets a 81 Valuation Rank today. Find out what this means to you and get the rest of the rankings on ENSG!

Metrics Analysis

ENSG's trailing-12-month Price to Earnings (PE) ratio of 20.8 puts it above the historical average of roughly 15. ENSG 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. ENSG's trailing-12-month earnings per share (EPS) of 3.33 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. ENSG currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 1.37. The market is currently overvaluing ENSG in relation to its projected growth due to the PEG ratio being above the fair market value of 1. ENSG's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

All together these valuation metrics paint a pretty poor picture for ENSG at its current price due to a overvalued PEG ratio despite strong growth. The PE and PEG for ENSG are worse than the average of the market resulting in a valuation score of 81. Click Here to get the full Report on Ensign Group Inc (ENSG) stock.

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