Should you buy shares of Qorvo Inc (QRVO) on Tuesday?
Qorvo Inc (QRVO) receives a solid appraisal ranking of 89 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. QRVO is worth better than 89% of the stocks 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.
QRVO has a twelve-month price-to-earnings (PE) ratio of 21.1, which puts it above the historical average of around 15. QRVO is currently trading at a low value due to investors paying. more than the value of the stock in relation to its profits. . QRVO’s last 12-month earnings per share (EPS) of 8.01 does not justify its share price in the market. The tracking PE ratios do not take into account the company’s projected growth rate. So some companies will have high PE ratios due to high growth recruiting more investors even though the underlying company has produced low profits so far. QRVO has a 12-month PE to Growth Term (PEG) ratio of 1.19. The markets are overstating QRVO relative to its projected growth, as its PEG ratio is currently above fair market value of 1. The PEG of 8.01000022 comes from the fact that its forward price / earnings ratio is 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 its past.
Overall, these valuation metrics paint a fairly adequate picture for QRVO at its current price due to a fairly valued PEG ratio despite strong growth. The PE and PEG for QRVO are around the market average, resulting in a valuation score of 89. Click here for the full Qorvo Inc (QRVO) share report.