Is Equity Lifestyle Properties, Inc. (ELS) stock overvalued or undervalued?
Equity Lifestyle Properties, Inc. (ELS) receives a low valuation ranking of 7 from Investors Observer data analysis. The proprietary ranking system focuses on the underlying health of a business by analyzing its stock price, earnings, and rate of growth. ELS is worth better than 7% of the shares based on these valuation analyzes. Investors primarily focused on buy and hold strategies will find the valuation ranking relevant to their goals when making investment decisions.
ELS’s 12-month price-to-earnings (PE) ratio of 60.7 puts it above the all-time average of around 15. ELS is poor value at its current trading price, as investors pay more than what it is worth in relation to the company’s profits. ELS’s last 12 month earnings per share (EPS) of 1.24 does not justify what it is currently trading in the market. Tracking PE ratios, however, do not take into account a company’s projected growth rate, resulting in some companies having high PE ratios due to high growth potentially attractive to investors even though current earnings are weak.
ELS currently has a 12-month forward PEG to Growth Ratio of 6.82. The market is currently overvaluing ELS relative to its projected growth due to the PEG ratio above fair market value of 1. ELS’s PEG is derived from its forward price / earnings ratio divided by its growth rate. Because PEG ratios include more of a company’s overall health fundamentals with an additional focus on the future, they are one of the valuation metrics most used by analysts.
Overall, these valuation metrics paint a pretty poor picture for ELS at its current price due to an overvalued PEG ratio due to strong growth. The PE and PEG for ELS are lower than the market average, resulting in a valuation score of 7.
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