Many Still Looking Away From DaVita Inc. (NYSE:DVA)
Many Still Looking Away From DaVita Inc. (NYSE:DVA)
With a median price-to-earnings (or "P/E") ratio of close to 16x in the United States, you could be forgiven for feeling indifferent about DaVita Inc.'s (NYSE:DVA) P/E ratio of 16.8x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/E.
DaVita certainly has been doing a good job lately as its earnings growth has been positive while most other companies have been seeing their earnings go backwards. It might be that many expect the strong earnings performance to deteriorate like the rest, which has kept the P/E from rising. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's not quite in favour.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on DaVita.What Are Growth Metrics Telling Us About The P/E?
There's an inherent assumption that a company should be matching the market for P/E ratios like DaVita's to be considered reasonable.
Taking a look back first, we see that the company grew earnings per share by an impressive 30% last year. EPS has also lifted 21% in aggregate from three years ago, mostly thanks to the last 12 months of growth. Therefore, it's fair to say the earnings growth recently has been respectable for the company.
Shifting to the future, estimates from the eight analysts covering the company suggest earnings should grow by 13% per annum over the next three years. Meanwhile, the rest of the market is forecast to only expand by 11% per annum, which is noticeably less attractive.
In light of this, it's curious that DaVita's P/E sits in line with the majority of other companies. It may be that most investors aren't convinced the company can achieve future growth expectations.
The Bottom Line On DaVita's P/E
Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
We've established that DaVita currently trades on a lower than expected P/E since its forecast growth is higher than the wider market. There could be some unobserved threats to earnings preventing the P/E ratio from matching the positive outlook. At least the risk of a price drop looks to be subdued, but investors seem to think future earnings could see some volatility.
Before you take the next step, you should know about the 2 warning signs for DaVita that we have uncovered.
If P/E ratios interest you, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
在美國,市盈率中位數(或 “市盈率”)接近16倍,你對DaVita Inc.無動於衷是可以原諒的。”s(紐約證券交易所代碼:DVA)市盈率爲16.8倍。但是,如果市盈率沒有合理的基礎,投資者可能會忽略明顯的機會或潛在的挫折。
DaVita最近確實做得很好,因爲其收益增長是正的,而大多數其他公司的收益卻在倒退。許多人可能預計,強勁的收益表現將像其他人一樣惡化,這阻礙了市盈率的上升。如果你喜歡這家公司,你希望情況並非如此,這樣你就有可能在它不太受青睞的情況下買入一些股票。
如果你想了解分析師對未來的預測,你應該查看我們關於DaVita的免費報告。關於市盈率,增長指標告訴我們什麼?
人們固有的假設是,一家公司應該與市場保持一致,這樣像DaVita這樣的市盈率才被認爲是合理的。
首先回顧一下,我們發現該公司去年的每股收益增長了令人印象深刻的30%。每股收益也比三年前增長了21%,這主要歸功於過去12個月的增長。因此,可以公平地說,該公司最近的收益增長是可觀的。
展望未來,報道該公司的八位分析師的估計表明,未來三年收益將每年增長13%。同時,預計其餘市場每年僅增長11%,這明顯降低了吸引力。
有鑑於此,奇怪的是,DaVita的市盈率與其他大多數公司持平。可能是大多數投資者不相信公司能夠實現未來的增長預期。
DaVita 市盈率的底線
僅使用市盈率來確定是否應該出售股票是不明智的,但它可以作爲公司未來前景的實用指南。
我們已經確定,DaVita目前的市盈率低於預期,因爲其預測的增長高於整個市場。可能存在一些未觀察到的收益威脅,使市盈率無法與樂觀的前景相吻合。至少價格下跌的風險似乎有所減弱,但投資者似乎認爲未來的收益可能會出現一些波動。
在你採取下一步行動之前,你應該了解我們發現的兩個DaVita警告信號。
如果你對市盈率感興趣,你可能希望看到這批盈利增長強勁、市盈率低的免費公司。
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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。
譯文內容由第三人軟體翻譯。
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