How does it score on the assessment measures?
Albemarle Corporation (ALB) receives a strong rating rating of 76 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings and growth rate. ALB is better valued than 76% of the stock based on these valuation analyses. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.
ALB has a year-over-year price-earnings (PE) ratio of 101.2, which puts it above the historical average of around 15. ALB is currently trading at a low value as investors pay more than what worth the action relative to its benefits. . ALB’s trailing 12-month earnings per share (EPS) of 2.37 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. ALB’s 12-month PE-to-Growth (PEG) ratio of 0.69 is considered good value as the market undervalues ALB relative to the company’s expected earnings growth. ALB’s PEG is derived from its forward price-to-earnings ratio divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and stock price. Due to their incorporation of more fundamentals of a company’s overall health and their focus on the future rather than the past, PEG ratios are one of the most widely used valuation measures by analysts today. today.
Together, these valuation metrics paint a pretty solid picture for ALB at its current price due to an undervalued PEG ratio despite strong growth. The PE and PEG for ALB are better than the market average, resulting in a review score of 76. Click here for the full Albemarle Corporation (ALB) stock report.
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