Is Cardinal Health, Inc. (CAH) Undervalued?
Based on the current stock price of $208.29 and a P/E ratio of 31.46,Cardinal Health, Inc. has a PEG ratio of 1.63.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 1.63, CAH appears to be fairly valued relative to its growth rate of 19.29%.
Based on a PEG ratio of 1.55 (adjusted for dividends).
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How we analyzed CAH
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 31.46and dividing it by the annual growth rate of 19.29%.
PEG = 31.46 (P/E) ÷ 19.29 (Growth) = 1.63
Frequently Asked Questions about CAH
What is the current PEG Ratio for Cardinal Health, Inc. (CAH)?+
The current PEG Ratio for Cardinal Health, Inc. is 1.63. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is CAH stock undervalued right now?+
Based on the PEG ratio of 1.63, Cardinal Health, Inc. appears to be fairly valued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for CAH?+
The PEGY ratio for Cardinal Health, Inc. is 1.55. This metric accounts for dividend yield (0.98%), providing a more complete valuation picture.