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Which FAANG Stocks Are Undervalued at Current Prices?

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May. 3 2019, Published 4:18 p.m. ET

Facebook

FAANG stocks have created massive wealth over the years and have been Wall Street favorites for a while now. Let’s see which of them are undervalued or overvalued using the PE ratio. Facebook (FB) has a forward PE (price to earnings) multiple of 20.66x. Comparatively, Facebook’s EPS are estimated to fall 6.9% this fiscal year, indicating that the stock is overvalued at current prices.

Facebook’s stock has risen by an impressive 231% over the last five years. Its EPS rose at a CAGR (compound annual growth rate) of 47.7% in the last five years. Analysts expect the company’s earnings to rise by 17.8% in the next five years.

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Apple

Apple (AAPL) has a forward PE multiple of 16.38x. In comparison, Apple’s EPS are estimated to fall 3.8% this fiscal year, indicating that the stock is overvalued at current prices.

Apple’s stock has risen by an impressive 147% over the last five years. Its EPS have risen at a CAGR of 12.1% in the last five years. Analysts expect the company’s earnings to rise by 13% in the next five years. Apple also has a dividend yield of 1.4%.

Amazon

Amazon (AMZN) has a forward PE multiple of 49.84x. In comparison, Amazon’s EPS are estimated to rise by 34.8% this fiscal year, indicating that the stock is overvalued at current prices.

Amazon’s stock has risen by a mindboggling 542% over the last five years. Its EPS rose at a CAGR of 104% in the last five years. Analysts expect the company’s earnings to rise by 94% in the next five years.

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Netflix

Netflix (NFLX) has a forward PE multiple of 64.7x. In comparison, Netflix’s EPS are estimated to rise by 27.6% this fiscal year, indicating that the stock is overvalued at current prices.

Netflix’s stock has risen by an astonishing 708% over the last five years. Its EPS rose at a CAGR of 56% in the last five years. Analysts expect the company’s earnings to rise by 46% in the next five years.

Google

Google (GOOGL) has a forward PE multiple of 21.74x. In comparison, Google’s EPS are estimated to rise by 4.0% this fiscal year, indicating that the stock is overvalued at current prices.

Google’s stock has risen by an impressive 122% over the last five years. Its EPS rose at a CAGR of 14% in the last five years. Analysts expect the company’s earnings to rise by 16% in the next five years.

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