Are EnerSys (ENS) shares trading below fair value?
InvestorsObserver gives EnerSys (ENS) a solid valuation score of 88 from its analysis. The proprietary rating system considers the underlying health of a company by analyzing its stock price, earnings and growth rate. ENS currently holds a better value than 88% of the stock based on these metrics. Long-term buy-and-hold investors should find the valuation ranking system most relevant when making investment decisions.
ENS’s trailing 12-month price-to-earnings (PE) ratio of 18.2 puts it around the historical average of around 15. ENS is an average value at its current trading price, as investors are paying around what its value in relation to the company’s profits. ENS’s trailing 12-month earnings per share (EPS) of 3.35 justifies what it is currently trading at in the market. However, rolling PE ratios do not take into account a company’s projected growth rate, causing some companies to have high PE ratios due to high growth, which could attract investors even if current earnings are weak. ENS currently has a 12-month PE to Growth (PEG) ratio of 1.15. The market is currently valuing ENS fairly against its projected growth, as the PEG ratio is around the fair market value of 1. ENS’s PEG comes from having its forward price-to-earnings ratio divided by its growth. Because PEG ratios include more fundamentals of a company’s overall health with an added focus on the future, they are one of the most widely used valuation measures by analysts.
Overall, these valuation metrics paint a pretty adequate picture for ENS at its current price due to a fairly valued PEG ratio despite strong growth. The PE and PEG for ENS are around the market average, resulting in an assessment score of 88. Click here for the full EnerSys (ENS) stock report.
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