InvestorsObserver gives Planet Fitness Inc (PLNT) a solid review score of 80 from its analysis. The proprietary rating system considers the underlying health of a company by analyzing its stock price, earnings and growth rate. PLNT currently holds a better value than 80% 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.
PLNT’s trailing 12-month price-to-earnings (PE) ratio of 112.1 puts it above the historical average of around 15. PLNT is a poor value at its current trading price, as investors are paying more than what its value compared to the profits of the company. PLNT’s trailing 12-month earnings per share (EPS) of 0.64 does not justify what it is currently trading at in the market. However, rolling PE ratios do not take into account a company’s projected growth rate, causing some companies to have high PE ratios due to high growth, which could attract investors even if current earnings are weak. PLNT has a 12-month PE-to-Growth (PEG) ratio of 1.31. Markets are overvaluing PLNT relative to its projected growth, as its PEG ratio is currently above the fair market value of 1. The PEG of 0.639999985 comes from its forward price-to-earnings ratio divided by its growth rate. PEG ratios are one of the most widely used valuation metrics due to the incorporation of more fundamental business metrics and the focus on the future of the business rather than about his past.
PLNT’ has a low valuation at its current price due to an overvalued PEG ratio despite strong growth. PLNT’s PE and PEG are below the market average, resulting in a below-average valuation score. Click here for the full Planet Fitness Inc (PLNT) stock report.
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