Grupo Financiero Galicia S.A. (NASDAQ:GGAL) has received a consensus one-year price recommendation of $27.40 by sell-side analysts. The price estimate shows the mean recommendations provided by the firms surveyed by Thomson Reuters’ First Call. The same set of brokerage firms have projected an earnings per share of $0.62 for the company during the upcoming quarter and an EPS of $3.12 for the current year.

Technical View

The technical analysis of Grupo Financiero Galicia S.A. reveals that the stock’s current market price is -1.22 or -4.83% off from its 50-day moving average of $25.27. Similarly, the equity is $2.10 or +9.56% away from its 200-day moving average of $21.95. The company’s most recent trading session reflects that the stock is $-5.20 far from its one year high of $29.25 and $+57.19% above its one-year low of $15.30.

Taking the Valuation Aspect

To analyse the current valuation of Grupo Financiero Galicia S.A., price/earnings ratio or commonly referred as P/E ratio can be considered to evaluate stock against its relative expenses. The P/E ratio is derived from a formula where stock’s current market price is divided by its yearly earnings per share. Using the formula, the company’s P/E ratio came in at 10.60. The stock of the company ended the previous session at $24.05 while its market capitalisation is $3.13B at present.

To seek closer analysis of a company’s growth, investors can also compute the PEG ratio or the Price/Earnings Growth ratio. A low PEG ratio denotes that a company’s earnings growth potential is higher than its current market price. Conversely, a high PEG ratio means the opposite, i.e., a company’s current market price is higher than its true earnings growth potential. A company’s stock is presumed to be undervalued if its PEG ratio falls in between 0 and 1. The company’s stock is said to be trading at fair value if the PEG ratio stands in between 1 and 2. On the other hand, PEG ratio over 2 means that the stock is overvalued. At present, the company’s PEG ratio for the next three to five years is at 0.18.

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