It's been a great morning session for Navitas Semiconductor investors, who saw their shares rise 5.0% to a price of $5.18 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
Navitas Semiconductor Corporation designs, develops, and markets gallium nitride (GaN) power integrated circuits used in power conversion and charging. The company belongs to the Technology sector, which has an average price to earnings (P/E) ratio of 26.5 and an average price to book (P/B) ratio of 5.57. In contrast, Navitas Semiconductor has a trailing 12 month P/E ratio of -5.1 and a P/B ratio of 2.1.
When we divide Navitas Semiconductor's P/E ratio by its expected EPS growth rate of the next five years, we obtain its PEG ratio of -0.85. Since it's negative, the company actually has negative growth expectations, and most investors will probably avoid the stock unless it has an exceptionally low P/E and P/B ratio.
