Are Synaptics, Incorporated (SYNA) shares less than fair value?
InvestorsObserver gives Synaptics, Incorporated (SYNA) a strong review score of 75 from its analysis. The proprietary rating system considers the underlying health of a company by analyzing its stock price, earnings and growth rate. SYNA currently holds a better value than 75% 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.
SYNA has a 12-month price-to-earnings (PE) ratio of 46.5. The historical average of around 15 shows low value for SYNA shares as investors pay higher prices relative to company earnings. SYNA’s high PE ratio shows that the company has been trading above fair market value recently. Its earnings per share (EPS) over the last 12 months of 3.51 does not justify 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. . SYNA currently has a 12-month PE to Growth (PEG) ratio of 1.44. The market is currently overvaluing SYNA relative to its projected growth due to the fact that the PEG ratio is greater than the fair market value of 1. SYNA’s PEG is derived from its forward price to earnings ratio divided by its growth rate. 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 SYNA at its current price due to an overvalued PEG ratio despite strong growth. The PE and PEG for SYNA are worse than the market average, resulting in a review score of 75. Click here for the full Synaptics, Incorporated (SYNA) stock report.
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