Seagate Technology plc (NASDAQ:STX) kept active in under and overvalue discussion, STX holds price to book ratio of 6.75 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation. In addition, the firm has price to earnings ratio of 44.07, which is authentic method to judge but not universal for all situation.
Fundament/ News Factor in Focus
Seagate Technology plc (STX) revealed a secondary block trade transaction of approximately 12.5 million ordinary and existing shares. Participating in this transaction are ValueAct Capital and Seagate Technology, as a result of which ValueAct Capital will become one of Seagate’s largest shareholders with approximately 9.5 million ordinary shares upon transaction closing. In connection with the transaction, ValueAct has been invited to serve as an observer on Seagate’s Board of Directors. The transaction is conditioned on customary regulatory approval which is expected by the end of September.
Chairman and chief executive officer of Seagate’s, Steve Luczo stated that we are very pleased to have ValueAct Capital as one of our largest investors. Seagate approached ValueAct to execute this transaction and become an investor in our company, given their commitment to and success in creating long-term value for the companies in which they invest. The Seagate Board and management team are looking forward to engaging with the ValueAct team as we leverage their experience and resources to further strengthen the company and create long-term investment appreciation for Seagate shareholders.
Taking look on ratio analysis, STX has forward price to earnings ratio of 11.36, compare to its price to earnings ratio of 44.07. The co is presenting price to cash flow as 9.53 and while calculating price to free cash flow it concluded at 29.44, the low single digit may indicate stock is undervalued and vise 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 2.53% for a week and 2.60% for a month. Its beta stands at 2.54 times. Narrow down four to firm performance, its weekly performance was 7.62% and monthly performance was 11.76%.
Broadcom Limited (NASDAQ:AVGO) runs in leading trade, it are dropping -0.31% to traded at $168.38. AVGO attains analyst recommendation of 1.70 on scale of 1-5 with week’s performance of -4.56%.
To find out the technical position of AVGO, it holds price to book ratio of 3.35 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 12.62, and price to earnings ratio calculated as 221.84. The price to earnings growth ration calculated as 13.89. AVGO is presenting price to cash flow of 33.38 and free cash flow concluded as 58.13.
EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at 327.70%, and looking further price to next year’s EPS is 19.03%. While take a short look on price to sales ratio, that was 7.67 and price to earning ration of 221.84 attracting passive investors.