Should you buy shares of Collegium Pharmaceutical Inc (COLL) on Friday?
Collegium Pharmaceutical Inc (COLL) receives a strong evaluation score of 80 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. COLL holds better value than 80% 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.
COLL has a 12-month price-to-earnings (PE) ratio of 19.6. The historical average of around 15 shows an average value for COLL stock as investors pay fair prices to the company’s profits. COLL’s average PE ratio shows that the company has recently traded around its fair market value. Its 12-month earnings per share (EPS) of 1.16 justifies the current share price. However, leakage PE ratios do not take into account the projected growth rate of the company, so many newer companies have high PE ratios due to high growth potential attracting investors despite profits. insufficient.
COLL currently has a 12 month forward PEG to growth ratio of 0.73. The market is currently undervaluing COLL from its projected growth due to the below-fair-market PEG ratio of 1. COLL’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 metrics paint a pretty solid picture for COLL at its current price due to an undervalued PEG ratio despite strong growth. The PE and PEG for COLL are better than the market average resulting in a valuation score of 80.
Click here for the full Collegium Pharmaceutical Inc (COLL) stock valuation report.