Are Coca-Cola Europacific Partners PLC (CCEP) shares trading below fair value?
InvestorsObserver gives Coca-Cola Europacific Partners PLC (CCEP) a solid valuation score of 81 from its analysis. The proprietary rating system considers the underlying health of a company by analyzing its stock price, earnings and growth rate. CCEP currently holds a better value than 81% 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.
CCEP has a year-over-year price-to-earnings (PE) ratio of 20.4. The historical average of around 15 indicates low value for CCEP shares as investors pay higher prices relative to the company’s earnings. CCEP’s high PE ratio shows that the company has recently traded above its fair market value. Its earnings per share (EPS) over the last 12 months of 2.16 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. . CCEP currently has a 12-month PE-to-Growth (PEG) ratio of 1.31. The market is currently overvaluing CCEP relative to its projected growth due to the fact that the PEG ratio is above the fair market value of 1. CCEP’s PEG is derived from its forward price to earnings ratio divided by its growth rate. 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.
Overall, these valuation metrics paint a pretty poor picture for CCEP at its current price due to an overvalued PEG ratio despite strong growth. CCEP’s PE and PEG are below the market average, resulting in a valuation score of 81. Click here for the full Coca-Cola Europacific Partners PLC (CCEP) stock report.
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