Is Boston Properties, Inc. (BXP) Stock Price Below Fair Value?
Investors Observer gives Boston Properties, Inc. (BXP) a low review score of 31 based on its analysis. The proprietary rating system takes into account the underlying health of a company by analyzing its stock price, earnings and rate of growth. BXP currently holds better value than 31% of the shares based on these metrics. Long-term buy and hold investors should find the most relevant valuation ranking system when making investment decisions.
BXP’s 12-month price-to-earnings (PE) ratio of 58.5 puts it above the all-time average of around 15. BXP is poor value at its current trading price as investors pay more than that. that it is worth in relation to the company’s profits. . BXP’s last 12-month earnings per share (EPS) of 1.93 does not justify what it is currently trading in the market. Tracking PE ratios, however, do not take into account a company’s projected growth rate, resulting in some companies having high PE ratios due to high growth potentially attractive to investors even though current earnings are weak. BXP has a 12-month PE to Growth Futures (PEG) ratio of 3.07. Markets are overvaluing BXP relative to its projected growth, as its PEG ratio is currently above fair market value of 1. The PEG of 1.92999994 comes from its forward price / earnings ratio divided by its growth rate. PEG ratios are one of the most used valuation metrics due to the incorporation of more fundamental business metrics and the focus on the future of the business rather than its past.
Overall, these valuation metrics paint a pretty poor picture for BXP at its current price due to an overvalued PEG ratio despite strong growth. BXP’s PE and PEG are below the market average, resulting in a valuation score of 31. Click here for the full report on Boston Properties, Inc. (BXP).