Micron Technology, Inc. (NASDAQ:MU) kept active in under and overvalue discussion, MU holds price to book ratio of 2.04 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation.
Fundament/ News Factor in Focus
Investors are definitely monitoring with enthusiasm the perceived favorable supply/demand situation for memory chips in 2017 which on the surface looks bullish for Micron (MU). In fact, with Micron continuing to be heavily exposed to DRAM, prices in this market are expected to rise by up to 25%. Credit Suisse is expecting demand to spike by 29% whereas it expects supply to inch up only by 18%. Micron still earns most of its revenue from the DRAM market.
These supply/demand numbers are bullish for Micron for fiscal 2017 but there is a risk that the likes of SK Hynix & Samsung Electronics (SSNLF) could add to the demand which would suppress prices in the market. In my opinion, the easy money has been made in Micron.
Taking look on ratio analysis, MU has forward price to earnings ratio of 8.74. The co is presenting price to cash flow as 6.40, the low single digit may indicate stock is undervalued and vice versa. On other hand, keeping in mind stable cash flows but few growth prospects make traders to value lower.
The firm has price volatility of 3.27% for a week and 2.75% for a month. Its beta stands at 1.92 times. Narrow down four to firm performance, its weekly performance was 10.46% and monthly performance was 6.15%.
GrubHub Inc. (NYSE:GRUB) runs in leading trade, it are moving down -0.67% to traded at $41.59. GRUB attains analyst recommendation of 2 on scale of 1-5 with week’s performance of 4.79%.
To find out the technical position of GRUB, it holds price to book ratio of 3.73 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 36.13, and price to earnings ratio calculated as 75.76. The price to earnings growth ration calculated as 3.66. GRUB is presenting price to cash flow of 12.01 and free cash flow concluded as 55.71.
EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at 51.60%, and looking further price to next year’s EPS is 26.48%. While take a short look on price to sales ratio, that was 7.81 and price to earning ration of 75.76 attracting passive investors.