Digital Turbine Inc (APPS) receives a strong review ranking of 63 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. APPS is better valued than 63% 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.
Metrics analysis
APPS’s trailing 12-month price-to-earnings (PE) ratio of 58.6 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’ 12-month PE-to-Growth (PEG) ratio of 1.74 is considered a poor value as the market overvalues APPS relative to the company’s expected earnings growth. APPS’ 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.
Summary
Overall, these valuation metrics paint a pretty poor picture for APPS at its current price due to an overvalued PEG ratio despite strong growth. The PE and PEG for APPS are worse than the market average, resulting in a review score of 63. Click here for the full Digital Turbine Inc (APPS) stock report.
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