Allison Transmission Holdings Inc (ALSN) receives a strong valuation ranking of 92 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings and growth rate. ALSN is better valued than 92% of stocks based on these valuation analyses. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.
Metrics analysis
ALSN has a year-over-year price-to-earnings (PE) ratio of 9.4. The historical average of around 15 indicates good value for ALSN shares as investors pay lower prices relative to company earnings. ALSN’s low PE ratio shows that the company has been trading below fair market value recently. Its trailing 12-month earnings per share (EPS) of 4.36 more than justifies 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. . ALSN’s 12-month PE-to-Growth (PEG) ratio of 1.14 is considered about average as the market values ALSN in line with its expected earnings growth. ALSN’s PEG is derived from its forward price/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.
Summary
ALSN’s valuation metrics are adequate at its current price due to a fairly valued PEG ratio due to strong growth. ALSN’s PE and PEG are around the market average, which translates into an average valuation score. Click here for the full Allison Transmission Holdings Inc (ALSN) stock report.
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