Today we're going to take a closer look at large-cap Consumer Discretionary company DuPont de Nemours, whose shares are currently trading at $69.64. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
DuPont de Nemours, Inc. provides technology-based materials and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. The company belongs to the Consumer Discretionary 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, DuPont de Nemours has a trailing 12 month P/E ratio of 34.5 and a P/B ratio of 1.2.
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.
DuPont de Nemours's PEG ratio is 1.25, 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.
