It hasn't been a great morning session for Snowflake investors, who have watched their shares sink by -12.09% to a price of $135.82 after earnings missed expectations. 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.
Snowflake Inc. provides a cloud-based data platform in the United States and internationally. The company belongs to the Technology sector, which has an average price to earnings (P/E) ratio of 27.16 and an average price to book (P/B) ratio of 6.23. In contrast, Snowflake has a trailing 12 month P/E ratio of -59.05 and a P/B ratio of 8.87.
Snowflake's PEG ratio is 1.913, 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.