Should you buy shares of Camden Property Trust (CPT) on Friday?
InvestorsObserver gives Camden Property Trust (CPT) a low review score of 9 from its analysis. The proprietary rating system considers the underlying health of a company by analyzing its stock price, earnings and growth rate. CPT currently holds a better value than 9% 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.
CPT has a 12-month price-to-earnings (PE) ratio of 126.5, which puts it above the historical average of around 15. CPT is currently trading at a poor value as investors are paying more than what worth the action in relation to its benefits. . CPT’s trailing 12-month earnings per share (EPS) of 1.19 does not justify its stock price in the market. Rolling PE ratios do not take into account the company’s projected growth rate, thus some companies will have high PE ratios due to high growth attracting more investors even if the underlying company generated low profits so far. CPT’s 12-month PE-to-Growth (PEG) ratio of 5.16 is considered a poor value as the market overvalues CPT relative to the company’s expected earnings growth. CPT’s PEG is derived from its forward price-to-earnings ratio divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and stock price. Due to their incorporation of more fundamentals of a company’s overall health and their focus on the future rather than the past, PEG ratios are one of the most widely used valuation measures by analysts today. today.
CPT’s valuation metrics are low at its current price due to an overvalued PEG ratio despite strong growth. CPT’s PE and PEG are below the market average, resulting in a below-average valuation score. Click here for the full Camden Property Trust (CPT) share report.