What do the Fundamentals Predict for Global Payments Inc (GPN) Stock?

Global Payments Inc (GPN) receives a strong valuation ranking of 74 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. GPN has a better value than 74% 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.

GPN gets a 74 Valuation Rank today. Find out what this means to you and get the rest of the rankings on GPN!

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Metrics Analysis

GPN has a trailing twelve month Price to Earnings (PE) ratio of 33.4. The historical average of roughly 15 shows a poor value for GPN stock as investors are paying higher share prices relative to the company's earnings. GPN'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 3.50 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. GPN currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 0.72. The market is currently undervaluing GPN in relation to its projected growth due to the PEG ratio being below the fair market value of 1. GPN'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

GPN's valuation metrics are strong at its current price due to a undervalued PEG ratio despite strong growth. GPN's PE and PEG are better than the market average resulting in a above average valuation score. Click Here to get the full Report on Global Payments Inc (GPN) stock.