Digital Turbine Inc (APPS) Receives a Strong Review Ranking of 72 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 72% 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 120.9 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 0.46 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 0.67. 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
APPS’ valuation metrics are strong 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.
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