Are PNC Financial Services Group Inc (PNC) shares trading below fair value?
PNC Financial Services Group Inc (PNC) achieves a solid valuation score of 92 from Investors Observer analysis. Our proprietary rating system takes into account the overall health of the business by examining the stock’s price, earnings and growth rate to determine if it represents good value. PNC holds better value than 92% of the shares at its current price. Investors who focus on long-term growth through buy and hold investments will find the valuation ranking particularly relevant when allocating their assets.
PNC has a year-over-year price-to-earnings (PE) ratio of 16.1. The historical average of around 15 shows an average value for PNC stock, as investors pay fair prices to the company’s profits. PNC’s average PE trailing ratio shows that the company has recently traded around its fair market value. Its 12-month rolling earnings per share (EPS) of 13.09 justifies the current share price. However, leakage PE ratios do not take into account the company’s projected growth rate, so many newer companies have high PE ratios due to high growth potential attracting investors despite insufficient profits. PNC currently has a 12-month forward PEG to growth ratio of 0.87. The market is currently pricing PNC fairly against its projected growth due to the PEG ratio hovering around fair market value of 1. PNC’s PEG is derived from its forward price / earnings ratio divided by its growth rate. Because PEG ratios include more of a company’s overall health fundamentals with an additional focus on the future, they are one of the valuation metrics most used by analysts.
Overall, these valuation measures paint a fairly adequate picture for PNC at its current price due to a fairly valued PEG ratio despite strong growth. The PE and PEG for PNC are around the market average, resulting in a valuation score of 92. Click here for the full report on PNC Financial Services Group Inc (PNC) stock.