Jacobs Engineering Group Inc (J) receives a strong valuation ranking of 66 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. J has a better value than 66% 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.
J gets a 66 Valuation Rank today. Find out what this means to you and get the rest of the rankings on J!
J's trailing-12-month Price to Earnings (PE) ratio of 48 puts it above the historical average of roughly 15. J 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. J's trailing-12-month earnings per share (EPS) of 2.87 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.
J's 12-month-forward PE to Growth (PEG) ratio of 1.6 is considered a poor value as the market is overvaluing J in relation to the company's projected earnings growth due. J'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.