Is there Value for Investors: Fossil Group ($FOSL)

We look at Fossil Group, Inc. [stckqut]FOSL[/stckqut] a company in the Consumer Goods industry which traders have been highly interested in of late, to assess if it provides value for investors considering buying or selling it.

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The stock has an estimated 5 year annual growth of 10.31% and a PEG multiple of 1.15.

Rather than the usual Price to Earnings (P/E) multiple method, we use a slightly different method to assess if Fossil Group, Inc. is potentially a value buy for investors, the PEG ratio (P/E to growth). This PEG multiple takes into account the expected long term growth in earnings of the company rather than merely the growth for one earnings period ahead as forward P/E does.

That is to say, P/E simply doesn’t account for the long term prospects of FOSL. As a rule of thumb, a stock with a PEG of between 0 and 1 is usually considered to be underpriced, between 1 and 2 to be at fair value and over 2 to be overpriced. Based on the PEG ratio of FOSL being 1.15, we consider Fossil Group, Inc. to likely be priced at fair value.

Source: Is there Value for Investors: Fossil Group (NASDAQ:FOSL) - Stock Markets Daily

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