Is CenterPoint Energy, Inc. (CNP) Undervalued?
Based on the current stock price of $38.29 and a P/E ratio of 24.23,CenterPoint Energy, Inc. has a PEG ratio of 2.74.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 2.74, CNP appears to be potentially overvalued relative to its growth rate of 8.84%.
Based on a PEG ratio of 2.16 (adjusted for dividends).
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How we analyzed CNP
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 24.23and dividing it by the annual growth rate of 8.84%.
PEG = 24.23 (P/E) ÷ 8.84 (Growth) = 2.74
Frequently Asked Questions about CNP
What is the current PEG Ratio for CenterPoint Energy, Inc. (CNP)?+
The current PEG Ratio for CenterPoint Energy, Inc. is 2.74. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is CNP stock undervalued right now?+
Based on the PEG ratio of 2.74, CenterPoint Energy, Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for CNP?+
The PEGY ratio for CenterPoint Energy, Inc. is 2.16. This metric accounts for dividend yield (2.40%), providing a more complete valuation picture.