Afya Ltd (AFYA) receives a strong rating of 62 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. AFYA holds a better value than 62% of the shares 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.
AFYA has a year-over-year price-earnings (PE) ratio of 26.6, which puts it above the historical average of around 15. AFYA is currently trading at a poor value due to investors paying more than the stock is worth relative to its earnings. . AFYA’s trailing 12-month earnings per share (EPS) of 0.42 does not justify 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. AFYA currently has a 12-month PE-to-Growth (PEG) ratio of 0.6. The market is currently undervaluing AFYA relative to its projected growth due to the fact that the PEG ratio is below the fair market value of 1. AFYA’s PEG stems from the fact that its forward price to earnings ratio is 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.
Together, these valuation metrics paint a pretty solid picture for AFYA at its current price due to an undervalued PEG ratio despite strong growth. The PE and PEG for AFYA are better than the market average, resulting in a review score of 62. Click here for the full Afya Ltd (AFYA) stock report.
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