What do the fundamentals predict for Robert Half International Inc. (RHI) stock?
InvestorsObserver gives Robert Half International Inc. (RHI) a solid review score of 73 based on its analysis. The proprietary rating system considers the underlying health of a company by analyzing its stock price, earnings and growth rate. RHI currently holds a better value than 73% 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.
RHI has a year-over-year price-to-earnings (PE) ratio of 14.8, which puts it around the historical average of around 15. RHI is currently trading at an average value due to investors paying around this What is the stock worth in relation to its earnings? RHI’s trailing 12-month earnings per share (EPS) of 5.89 justifies 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. RHI currently has a 12-month PE to Growth (PEG) ratio of 1.45. The market is currently overvaluing RHI relative to its projected growth due to the fact that the PEG ratio is above the fair market value of 1. RHI’s PEG arises from its forward price to earnings ratio being divided by its rate of growth. Because PEG ratios include more fundamentals of a company’s overall health with an added focus on the future, they are one of the most widely used valuation measures by analysts.
Overall, these valuation metrics paint a pretty poor picture for RHI at its current price due to an overvalued PEG ratio despite strong growth. RHI’s PE and PEG are below the market average, resulting in a valuation score of 73. Click here for the full Robert Half International Inc. (RHI) stock report.
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