Yahoo Finance How Do Analysts See Peugeot S.A. (EPA:UG) Performing Over The Next Few Years?
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In February 2019, Peugeot S.A. (EPA:UG) announced its latest earnings update, which indicated that the company benefited from a robust tailwind, leading to a double-digit earnings growth of 47%. Below, I've laid out key growth figures on how market analysts view Peugeot's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
Check out our latest analysis for Peugeot
Market analysts' prospects for the coming year seems optimistic, with earnings climbing by a robust 19%. This growth seems to continue into the following year with rates arriving at double digit 28% compared to today’s earnings, and finally hitting €3.8b by 2022.
While it is helpful to understand the rate of growth year by year relative to today’s level, it may be more insightful to gauge the rate at which the business is moving on average every year. The benefit of this approach is that it ignores near term flucuations and accounts for the overarching direction of Peugeot's earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I've inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 8.9%. This means, we can presume Peugeot will grow its earnings by 8.9% every year for the next few years.
Next Steps:
For Peugeot, I've compiled three key aspects you should further research:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is UG worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether UG is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of UG? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
