Should you buy Fresenius Medical Care AG & Co. (FMS) shares on Thursday?
Fresenius Medical Care AG & Co. (FMS) receives a solid rating of 87 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. FMS is better valued than 87% of stocks 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.
FMS has a 12-month price-to-earnings (PE) ratio of 17.9. The historical average of around 15 indicates average value for FMS shares, as investors pay fair prices relative to the company’s earnings. FMS’s average PE ratio shows that the company has been trading around its fair market value recently. Its trailing 12-month earnings per share (EPS) of 3.68 justifies the current share price. However, rolling PE ratios do not take into account the company’s projected growth rate, resulting in many new companies having high PE ratios due to high growth potential that attracts investors despite insufficient earnings. . FMS’ 12-month PE-to-Growth (PEG) ratio of 1.22 is considered a poor value because the market overvalues FMS relative to the company’s expected earnings growth. FMS’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.
Overall, these valuation metrics paint a pretty poor picture of FMS at its current price due to an overvalued PEG ratio despite strong growth. The PE and PEG for FMS are below the market average, resulting in a valuation score of 87. Click here for the full Fresenius Medical Care AG & Co. (FMS) stock report.
Stay in the know
Subscribe to our daily morning update newsletter and never miss market news, moves and more.