Should you buy Mercury Systems Inc (MRCY) stock on Monday?
Mercury Systems Inc (MRCY) receives a low rating of 1 from InvestorsObserver To analyse. Our proprietary rating system takes into account the overall health of the company by looking at stock price, earnings and growth rate to determine if it represents good value. MRCY holds better value than 1% of the stock at its current price. Investors who focus on long-term growth through long-term investments will find the valuation ranking particularly relevant when allocating their assets.
MRCY has a 12-month price-to-earnings (PE) ratio of 135.5. The historical average of around 15 indicates low value for MRCY shares as investors pay higher prices relative to the company’s earnings. MRCY’s high PER 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 0.42 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. . MRCY has a 12-month PE-to-Growth (PEG) ratio of 14.94. Markets are overvaluing MRCY against its expected growth, as its PEG ratio is currently above the fair market value of 1. The PEG of 0.419999986 comes from its forward price-to-earnings ratio 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.
MRCY’ has a low valuation at its current price due to an overvalued PEG ratio due to strong growth. MRCY’s PE and PEG are below the market average, resulting in a below-average valuation score. Click here for the full Mercury Systems Inc (MRCY) stock report.
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