It hasn't been a great afternoon session for IDEX investors, who have watched their shares sink by -5.3% to a price of $226.92. Some of you might be wondering if it's time to buy the dip. If you are considering this, make sure to check the company's fundamentals first to determine if the shares are fairly valued at today's prices.
IDEX Corporation, together with its subsidiaries, provides applied solutions worldwide. The company belongs to the Industrials sector, which has an average price to earnings (P/E) ratio of 21.46 and an average price to book (P/B) ratio of 3.7. In contrast, IDEX has a trailing 12 month P/E ratio of 30.8 and a P/B ratio of 6.1.
IDEX's PEG ratio is 2.31, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.