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Vasco Data Security International’s Forward PE Compared with XLK

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Aug. 18 2020, Updated 5:32 a.m. ET

Price performance comparison

Some firms in the ISE Cyber Security ETF (HACK), like Vasco Data Security International, can be compared from a valuation point of view with large cap stocks in the Technology Select Sector SPDR Fund (XLK).

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Forward PE multiple

Vasco Data Security International’s forward PE (price-to-earnings) multiple is 19.91x. It’s similar to firms in XLK including Analog Devices (ADI), Xilinx (XLNX), and Electronic Arts (EA). They have forward PE multiples of 20.30x, 19.28x, and 19.25x, respectively.

Vasco Data Security International

Vasco Data Security International generated impressive shareholder returns of 264.94% in 2014. The YTD (year-to-date), trailing 12 month, and trailing one month returns are also healthy at 4.39%, 162.57%, and 7.24%, respectively.

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Analog Devices 

Analog Devices generated shareholder returns of 12.12% in 2014. The YTD, trailing 12 month, and trailing one month returns are 20.57%, 27.53%, and 5.83%, respectively.

Xilnix 

Xilinx generated negative returns of -3.32% for investors in 2014. However, the YTD, trailing 12 month, and trailing one month returns have been better at 9.06%, 2.76%, and 6.68%, respectively.

Electronic Arts 

Electronic Arts generated impressive shareholder returns of 104.95% in 2014. Its YTD, trailing 12 month, and trailing one month returns are also healthy at 33.21%, 79.20%, and 5.60%, respectively.

Considering the similar PE ratios for the firms, we can see that Vasco Data Security International generated better returns than the others in 2014. It also had better returns for the trailing 12 month and trailing one month periods. However, Analog Devices, Xilinx, and Electronic Arts have outperformed Vasco Data Security International comfortably since January 2015.

Although these firms are in different industries, their valuations underscore the potential for relative value that exists within the tech sector as a whole.

In the next part of this series, we’ll compare the price performance of Vasco Data Security International with similar forward multiples in the PowerShares QQQ (QQQ).

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