Are New York Community Bancorp, Inc. (NYCB) shares trading below fair value?
New York Community Bancorp, Inc. (NYCB) receives a strong assessment score of 100 from Investors Observer analysis. Our proprietary rating system takes into account the overall health of the business by examining the stock’s price, earnings and growth rate to determine if it represents good value. NYCB holds better value than 100% of the shares at its current price. Investors who focus on long-term growth through buy and hold investments will find the valuation ranking particularly relevant when allocating their assets.
NYCB’s 12-month price-to-earnings (PE) ratio of 9.7 puts it below the historical average of around 15. NYCB is a good value at its current price, as investors are paying less than they are. worth in relation to the company’s profits. . NYCB’s 12-month earnings per share (EPS) of 1.28 justifies what it is currently trading in the market. However, follower PE ratios do not take into account a company’s projected growth rate, resulting in some companies having high PE ratios due to high growth potentially attractive to investors even though current earnings are weak. NYCB has a 12-month forward PEG ratio of 1. Markets are overvaluing NYCB relative to its projected growth because its PEG ratio is currently above fair market value of 1. The PEG of 1.27999997 comes from its futures price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to the incorporation of more fundamental business metrics and the focus on the future of the business rather than its past.
NYCB’s valuation metrics are adequate at its current price due to a fairly valued PEG ratio due to strong growth. NYCB’s PE and PEG are around the market average, resulting in an average valuation score. Click here for the full New York Community Bancorp, Inc. (NYCB) stock report.