What do the Fundamentals Predict for FleetCor Technologies, Inc. (FLT) Stock?

Tuesday, October 05, 2021 02:00 PM | InvestorsObserver Analysts

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What do the Fundamentals Predict for FleetCor Technologies, Inc. (FLT) Stock?

InvestorsObserver gives FleetCor Technologies, Inc. (FLT) a strong valuation score of 77 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. FLT currently holds a better value than 77% 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.

FLT gets a 77 Valuation Rank today. Find out what this means to you and get the rest of the rankings on FLT!

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Metrics Analysis

FLT's trailing-12-month Price to Earnings (PE) ratio of 29.4 puts it above the historical average of roughly 15. FLT 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. FLT's trailing-12-month earnings per share (EPS) of 9.08 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. FLT's 12-month-forward PE to Growth (PEG) ratio of 1.44 is considered a poor value as the market is overvaluing FLT in relation to the company's projected earnings growth due. FLT'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

All together these valuation metrics paint a pretty poor picture for FLT at its current price due to a overvalued PEG ratio despite strong growth. The PE and PEG for FLT are worse than the average of the market resulting in a valuation score of 77. Click Here to get the full Report on FleetCor Technologies, Inc. (FLT) stock.