It hasn't been a great afternoon session for Pacific Gas & Electric Co. investors, who have watched their shares sink by -1.2% to a price of $16.59. 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.
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PG&E Corporation, through its subsidiary, Pacific Gas and Electric Company, engages in the sale and delivery of electricity and natural gas to customers in northern and central California, the United States. It generates electricity using nuclear, hydroelectric, fossil fuel-fired, fuel cell, and photovoltaic sources. The company belongs to the Utilities sector, which has an average price to earnings (P/E) ratio of None and an average price to book (P/B) ratio of None. In contrast, Pacific Gas & Electric Co. has a trailing 12 month P/E ratio of 19.3 and a P/B ratio of 1.47.
Pacific Gas & Electric Co.'s PEG ratio is 1.34, 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.
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