Are OI Glass Inc (OI) shares overvalued or undervalued?
InvestorsObserver gives OI Glass Inc (OI) a solid review score of 76 from its analysis. The proprietary rating system considers the underlying health of a company by analyzing its stock price, earnings and growth rate. OI currently holds a better value than 76% of the shares based on these metrics. Long-term buy-and-hold investors should find the valuation ranking system most relevant when making investment decisions.
OI has a year-over-year price-to-earnings (PE) ratio of 4.7. The historical average of around 15 indicates good value for OI shares as investors pay lower prices relative to the company’s earnings. OI’s low PE ratio shows that the company has been trading below fair market value recently. Its trailing 12-month earnings per share (EPS) of 2.94 more than justifies 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. . OI has a 12-month PE-to-Growth (PEG) ratio of 1.43. Markets are overvaluing OI relative to its expected growth, as its PEG ratio is currently above the fair market value of 1. The PEG of 2.94000005 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.
OI’ has a low valuation at its current price due to an overvalued PEG ratio due to strong growth. OI’s PE and PEG are below the market average, resulting in a below-average valuation score. Click here for the full OI Glass Inc (OI) stock report.
Stay in the know
Subscribe to our daily morning update newsletter and never miss market news, moves and more.