Source: Shutterstock The AZEK Company Inc. ( NYSE:AZEK ), might not be a large cap stock, but it saw a significant share price rise of over 20% in the past couple of months on the NYSE. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today I will analyse the most recent data on AZEK’s outlook and valuation to see if the opportunity still exists. What’s The Opportunity In AZEK? AZEK appears to be expensive according to my price multiple model, which makes a comparison between the company’s price-to-earnings ratio and the industry average. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that AZEK’s ratio of 45.72x is above its peer average of 15.12x, which suggests the stock is trading at a higher price compared to the Building industry. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that AZEK’s share is fairly volatile (i.e. its price […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
