Packaging Corp Of America (PKG) Stock in figures
Packaging Corp Of America (PKG) receives a low review score of 33 from Investors Observer To analyse. Our proprietary rating system takes into account the overall health of the business by examining the stock’s price, earnings and growth rate to determine if it represents good value. PKG holds better value than 33% of the shares at its current price. Investors who focus on long-term growth through buy and hold investments will find the valuation ranking particularly relevant when allocating their assets.
PKG has a twelve-month price-to-earnings (PE) ratio of 17. The historical average of around 15 shows an average value for PKG stock, as investors pay fair prices to the company’s earnings. PKG’s average PE trailing ratio shows that the company has recently traded around its fair market value. Its 12-month earnings per share (EPS) of 7.85 justifies the current share price. However, the leakage PE ratios do not take into account the company’s projected growth rate, so many newer companies have high PE ratios due to high growth potential attracting investors despite insufficient profits. PKG currently has a 12-month forward PEG to Growth Ratio of 3.06. The market is currently overstating PKG from its projected growth due to the PEG ratio above fair market value of 1. PKG’s PEG is derived from its forward price / earnings ratio divided by its growth rate. Because PEG ratios include more of a company’s overall health fundamentals with an additional focus on the future, they are one of the valuation metrics most used by analysts.
Overall, these valuation metrics paint a pretty poor picture for PKG at its current price due to an overvalued PEG ratio due to strong growth. The PE and PEG for PKG are below market average, resulting in a valuation score of 33. Click here for the full Packaging Corp Of America (PKG) share report.