InvestorsObserver gives Digital Turbine Inc (APPS) a solid review score of 70 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 70% 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 has a year-over-year price-to-earnings (PE) ratio of 71.8. The historical average of around 15 indicates low value for APPS shares as investors pay higher stock prices relative to company earnings. APPS’ high PE ratio shows that the company has been trading above its fair market value recently. Its earnings per share (EPS) over the last 12 months of 0.54 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. . APPS currently has a 12-month PE-to-Growth (PEG) ratio of 0.64. The market is currently undervaluing APPS relative to its projected growth due to the fact that the PEG ratio is below the fair market value of 1. APPS’s PEG is derived from its forward price to earnings ratio divided by its rate of growth. Because PEG ratios include more fundamentals of a company’s overall health with an added focus on the future, they are one of the most widely used valuation measures by analysts.
Summary
APPS’ has a strong valuation at its current price due to an undervalued PEG ratio despite strong growth. APPS’ PE and PEG are better than the market average, which translates into an above-average valuation score. Click here for the full Digital Turbine Inc (APPS) stock report.
