Are KeyCorp (KEY) shares trading below fair value?
KeyCorp (KEY) receives a low rating of 37 from InvestorsObserver analysis. Our proprietary rating system takes into account the overall health of the company by looking at stock price, earnings and growth rate to determine if it represents good value. KEY holds a better value than 37% of the stock at its current price. Investors who focus on long-term growth through long-term investments will find the valuation ranking particularly relevant when allocating their assets.
KEY has a year-over-year price-earnings (PE) ratio of 7.1, which puts it below the historical average of around 15. KEY is currently trading at a good value as investors are paying less than what is worth the action in relation to its profits. . KEY’s trailing 12-month earnings per share (EPS) of 2.47 justifies 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. KEY has a 12-month PE-to-Growth (PEG) ratio of 0.43. Markets are overvaluing KEY against its projected growth as its PEG ratio is currently above the fair market value of 1. The PEG of 2.47000002 comes from its forward price to earnings ratio being 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.
Valuation metrics for KEY are strong at its current price due to an undervalued PEG ratio despite strong growth. KEY’s PE and PEG are better than the market average, which translates into an above-average valuation score. Click here for the full KeyCorp (KEY) stock report.
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