Digital Turbine Inc (APPS) receives a solid evaluation score of 95 from Investors Observer To analyse. 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. APPS is worth better than 95% 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.
Metrics analysis
APPS has a twelve-month price-to-earnings (PE) ratio of 129.2. The historical average of around 15 shows low value for APPS stock as investors pay higher stock prices relative to company earnings. APPS’s high PE ratio shows that the company has recently traded above its fair market value. Its 12-month earnings per share (EPS) of 0.60 does not justify the current share price. However, leakage PE ratios do not take into account the company’s projected growth rate, so many newer companies have high PE ratios due to high growth potential attracting investors despite insufficient profits. APPS has a 12-month forward PEG to Growth Ratio of 1.09. The markets are overvaluing APPS relative to its projected growth because its PEG ratio is currently above fair market value of 1. The PEG of 0.600000023 comes from the fact that its forward price / earnings ratio is divided by its growth rate. . PEG ratios are one of the most used valuation metrics due to the incorporation of more fundamental business metrics and the focus on the future of the business rather than its past.
Summary
Overall, these valuation metrics paint a pretty decent 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 valuation score of 95. Click here for the full Digital Turbine Inc (APPS) share report.
