Are Iqvia Holdings Inc (IQV) shares trading below fair value?
InvestorsObserver gives Iqvia Holdings Inc (IQV) a solid valuation score of 66 from its analysis. The proprietary rating system considers the underlying health of a company by analyzing its stock price, earnings and growth rate. IQV currently holds a better value than 66% 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.
IQV has a year-over-year price-earnings (PE) ratio of 60.9, which puts it above the historical average of around 15. IQV is currently trading at a poor value as investors are paying more than what worth the action in relation to its benefits. . IQV’s trailing 12-month earnings per share (EPS) of 3.94 does not justify its stock price in the market. Rolling PE ratios do not take into account the company’s projected growth rate, thus some companies will have high PE ratios due to high growth attracting more investors even if the underlying company generated low profits so far. IQV has a 12-month PE-to-Growth (PEG) ratio of 1.65. Markets are overvaluing IQV against its projected growth, as its PEG ratio is currently above the fair market value of 1. The PEG of 3.94000005 comes from its forward price-to-earnings ratio divided by its growth rate. PEG ratios are one of the most widely used valuation metrics due to the incorporation of more fundamental business metrics and the focus on the future of the business rather than about his past.
Overall, these valuation metrics paint a pretty poor picture for IQV at its current price due to an overvalued PEG ratio despite strong growth. The PE and PEG for IQV are worse than the market average, resulting in a valuation score of 66. Click here for the full Iqvia Holdings Inc (IQV) stock report.
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