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 has a year-over-year price-to-earnings (PE) ratio of 104.1. 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 0.46 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 has a 12-month PE-to-Growth (PEG) ratio of 0.59. Markets are overvaluing APPS against its expected growth as its PEG ratio is currently above the fair market value of 1. The PEG of 0.460000008 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
Together, these valuation metrics paint a pretty strong picture for APPS at its current price due to an undervalued PEG ratio despite strong growth. The PE and PEG for APPS are better 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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