What do the fundamentals predict for ABB Ltd (ABB) stock?

ABB Ltd (ABB) receives a low rating of 22 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. ABB holds a better value than 22% 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.

ABB achieves a rating rating of 22 today. Find out what this means for you and get the rest of the rating on ABB!

Metrics analysis

ABB has a year-over-year price-to-earnings (PE) ratio of 11.6, which puts it around the historical average of around 15. ABB is currently trading at an average value as investors pay approximately what the action in relation to its benefits. ABB’s trailing 12-month earnings per share (EPS) of 1.00 justifies its share 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. ABB’s 12-month PE-to-Growth (PEG) ratio of 3.01 is considered a bad value as the market overvalues ​​ABB relative to the company’s expected earnings growth. ABB’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.

Summary

Together, these valuation metrics paint a pretty poor picture for ABB at its current price due to an overvalued PEG ratio due to strong growth. ABB’s PE and PEG are below the market average, resulting in a valuation score of 22. Click here for the full ABB Ltd (ABB) stock report.

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