Are Alliant Energy Corporation (LNT) shares trading below their fair value?
Alliant Energy Corporation (LNT) has a low valuation ranking of 20 according to analysis of * InvestorsObserver * data. The proprietary ranking system focuses on the underlying health of a business by analyzing its stock price, earnings, and rate of growth. LNT is worth better than 20% of stocks based on these valuation analyzes. Investors primarily focused on buy and hold strategies will find the valuation ranking to match their goals when making investment decisions.
LNT has a twelve month price / earnings ([PE](https://www.investorsobserver.com/learning-center/stock-basics/what-is-ape-ratio)) of 23, which puts it above the historical average of around 15. LNT is trading currently at a low value because investors are paying more than what the stock is worth in relation to its earnings. LNT’s last 12-month earnings per share (EPS) of 2.45 does not justify its stock price in the market. The PE tracking ratios do not take into account the company’s projected growth rate. Thus, some companies will have high PE ratios due to high growth recruiting more investors, even though the underlying company has so far generated low profits. LNT’s 12-month PEG to Growth Ratio of 4 is considered a mediocre value as the market overstates LNT relative to the expected growth in company earnings. LNT’s PEG is derived from its forward price / earnings ratio divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and the stock price. Due to their integration of more fundamentals of the overall health of a company and their focus on the future rather than the past, PEG ratios are one of the most widely used valuation measures by analysts today. ‘hui.
Overall, these valuation metrics paint a pretty poor picture for LNT at its current price due to an overvalued PEG ratio due to strong growth. The PE and PEG for LNT are below market average, resulting in a valuation score of 20. Click here for the full report on Alliant Energy Corporation (LNT).