We've been asking ourselves recently if the market has placed a fair valuation on Renault. Let's dive into some of the fundamental values of this Renault Consumer Cyclical company to determine if there might be an opportunity here for value-minded investors.
Renault SA designs, manufactures, sells, and distributes vehicles in France and internationally. The company belongs to the Consumer Cyclical sector, which has an average price to earnings (P/E) ratio of 24.11 and an average price to book (P/B) ratio of 3.11. In contrast, Renault has a trailing 12 month P/E ratio of 7.6 and a P/B ratio of 0.4.
P/B ratios are calculated by dividing the company's market value by its equity's book value. Equity refers to all of the company's assets minus its liabilities. Traditionally, a P/B ratio of around 1 shows that a company is fairly valued, but owing to consistently higher valuations in the modern era, investors generally compare against sector averages.
Renault has moved 5.2% over the last year compared to -9.9% for the S&P 500 — a difference of 15.1%. Renault has a 52 week high of $42.23 and a 52 week low of $22.88.
