What is its score on the fundamental measures?
Horizon Therapeutics PLC (HZNP) receives a solid 89 rating from InvestorsObserver To analyse. 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. HZNP holds a better value than 89% 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.
HZNP has a 12-month price-to-earnings (PE) ratio of 41.4. The historical average of around 15 shows low value for HZNP shares as investors pay higher prices relative to company earnings. HZNP’s high PE ratio shows that the company has been trading above fair market value recently. Its earnings per share (EPS) over the last 12 months of 2.36 does not justify 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. . HZNP has a 12-month PE to Growth (PEG) ratio of 1.17. Markets are overvaluing HZNP relative to its projected growth, as its PEG ratio is currently above the fair market value of 1. The PEG of 2.35999989 comes from its forward price-to-earnings ratio 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.
Overall, these valuation metrics paint a pretty adequate picture for HZNP at its current price due to a fairly valued PEG ratio despite strong growth. The PE and PEG for HZNP are around the market average, resulting in a valuation score of 89. Click here for the full Horizon Therapeutics PLC (HZNP) stock report.
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