Equity Analysis: Petrobras Argentina S.A. (NYSE:PZE)

Wall street sell-side analysts have given shares of Petrobras Argentina S.A. (NYSE:PZE) as price target of $7.80. This is the one year target predicted by brokerage firms polled by Thomson Reuters. The same equity research firms are predicting earnings of $0.00 per share next quarter and $0.93 for the current year.

Technical Levels

In taking a look at the price level and moving averages of Petrobras Argentina S.A. ADS, the equity is trading $0.96 away or +18.02% from its 50-day moving average of $5.32. Looking further back, the stock is $-0.11 away from its 200-day moving average of $6.39, or a difference of -1.79%. Based on a recent trade, the equity is trading $-1.62 away from its 52-week high of $7.90 and $+45.37% away from its 52-week low of $4.32.

Valuation

In taking a quick look at the current valuation of Petrobras Argentina S.A. ADS, the price/earnings ratio, commonly referred to as the P/E ratio, is a standard method for comparing stocks based on their relative expense. This is determined by dividing its current price per share by its earnings per share. The P/E ratio for the company currently sits at 16.10. Shares of the firm closed the most recent session at $6.28. The firm’s current market cap stands at $1.27B.

Taking a step further, investors can take into consideration growth of the company’s earnings by looking at its PEG ratio, or the Price/Earnings Growth ratio. A low PEG ratio typically means that the company is trading at a low price relative to its future earnings growth potential. A high PEG ratio means that the company’s stock is trading at a high price relative to its earnings growth potential. Typically a company is considered to be undervalued if the PEG ration is between 0 and 1. The fair value of the stock is considered when the ratio is between 1 and 2. A stock with a PEG of over 2, represents overvaluation of the stock, based on this metric alone. The firm currently has a three to five year PEG ratio of -3.12.

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