InvestorsObserver gives Digital Turbine Inc (APPS) a solid review score of 89 from its analysis. The proprietary rating system considers the underlying health of a company by analyzing its stock price, earnings and growth rate. APPS currently holds a better value than 89% of the stock based on these metrics. Long-term buy-and-hold investors should find the valuation ranking system most relevant when making investment decisions.
Metrics analysis
APPS’s trailing 12-month price-to-earnings (PE) ratio of 36.2 puts it above the historical average of around 15. APPS is a poor value at its current trading price as investors pay more than what its value relative to the company’s earnings. APPS’s trailing 12-month earnings per share (EPS) of 0.36 does not justify what it is currently trading at in the market. However, rolling PE ratios do not take into account a company’s projected growth rate, causing some companies to have high PE ratios due to high growth, which could attract investors even if current earnings are weak. APPS has a 12-month PE-to-Growth (PEG) ratio of 1.14. Markets are overvaluing APPS against its expected growth as its PEG ratio is currently above the fair market value of 1. The PEG of 0.360000014 comes from its forward price to earnings ratio being 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.
Summary
Overall, these valuation metrics paint a fairly adequate picture for APPS at its current price due to a fairly valued PEG ratio despite strong growth. The PE and PEG for APPS are around the market average, resulting in a rating score of 89. Click here for the full Digital Turbine Inc (APPS) stock report.
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