It's been a great afternoon session for Fomento Economico Mexicano investors, who saw their shares rise 1.04% to a price of $92.88 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.
Fomento Econmico Mexicano, SAB de CV, is a bottler of Coca-Cola brand beverages. The company belongs to the Consumer Cyclical sector, which has an average price to earnings (P/E) ratio of 22.33 and an average price to book (P/B) ratio of 3.12. In contrast, Fomento Economico Mexicano has a trailing 12 month P/E ratio of 25.87 and a P/B ratio of 4.603.
Fomento Economico Mexicano's PEG ratio is 1.556, 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.