Are Vishay Intertechnology Inc (VSH) shares trading below fair value?
Vishay Intertechnology Inc (VSH) receives a low rating of 24 from InvestorsObserver analysis. Our proprietary rating system takes into account the overall health of the company by looking at stock price, earnings and growth rate to determine if it represents good value. VSH holds a better value than 24% of the stock at its current price. Investors who focus on long-term growth through long-term investments will find the valuation ranking particularly relevant when allocating their assets.
VSH has a year-over-year price-earnings (PE) ratio of 8.5, which puts it below the historical average of around 15. VSH is currently trading at a good value as investors are paying less than what is worth the action in relation to its profits. . VSH’s trailing 12-month earnings per share (EPS) of 2.27 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. VSH’s 12-month PE-to-Growth (PEG) ratio of 0.32 is considered a good value, as the market is undervaluing VSH relative to the company’s expected earnings growth. VSH’s PEG is derived from its forward price-to-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.
VSH’s valuation metrics are strong at its current price due to an undervalued PEG ratio despite strong growth. VSH’s PE and PEG are better than the market average, which translates into an above-average valuation score. Click here for the full Vishay Intertechnology Inc (VSH) stock report.
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