Savers Value Village, Inc.'s (NYSE:SVV) Popularity With Investors Is Under Threat From Overpricing

Simply Wall St.11-19

With a median price-to-earnings (or "P/E") ratio of close to 19x in the United States, you could be forgiven for feeling indifferent about Savers Value Village, Inc.'s (NYSE:SVV) P/E ratio of 19.6x. ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2484932475?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/company-cover/fallback-main-header/1585186798760","is_english":true,"pubTime":"2024-11-19 01:29","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2484932475","market":"nz","top_or_hot":-1,"title":"Savers Value Village, Inc.'s (NYSE:SVV) Popularity With Investors Is Under Threat From Overpricing","media":"Simply Wall St.","content":"<div>\n<p>With a median price-to-earnings (or \"P/E\") ratio of close to 19x in the United States, you could be forgiven for feeling indifferent about Savers Value Village, Inc.'s  (NYSE:SVV) P/E ratio of 19.6x. ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/retail/nyse-svv/savers-value-village/news/savers-value-village-incs-nysesvv-popularity-with-investors\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Savers Value Village, Inc.'s (NYSE:SVV) Popularity With Investors Is Under Threat From Overpricing</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSavers Value Village, Inc.'s (NYSE:SVV) Popularity With Investors Is Under Threat From Overpricing\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-19 01:29 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/retail/nyse-svv/savers-value-village/news/savers-value-village-incs-nysesvv-popularity-with-investors><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>With a median price-to-earnings (or \"P/E\") ratio of close to 19x in the United States, you could be forgiven for feeling indifferent about Savers Value Village, Inc.'s  (NYSE:SVV) P/E ratio of 19.6x. ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/retail/nyse-svv/savers-value-village/news/savers-value-village-incs-nysesvv-popularity-with-investors\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NYSE","symbol_name":"纽交所","start_time":0,"source_url":"https://simplywall.st/stocks/us/retail/nyse-svv/savers-value-village/news/savers-value-village-incs-nysesvv-popularity-with-investors","article_id":"2484932475","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/fallback-main-header/1585186798760"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2484932475","pubTimestamp":1731950940,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"With a median price-to-earnings (or \"P/E\") ratio of close to 19x in the United States, you could be forgiven for...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"NYSE":"纽交所","BK4211":"区域性银行","ISBC":"投资者银行","BK4114":"综合货品商店","BK4220":"综合零售","SVV":"Savers Value Village, Inc."},"translate_title":"Savers Value Village,Inc.（纽约证券交易所股票代码：SVV）在投资者中的受欢迎程度受到定价过高的威胁","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ISBC":1,"NYSE":1,"SVV":1},"content_text":"With a median price-to-earnings (or \"P/E\") ratio of close to 19x in the United States, you could be forgiven for feeling indifferent about Savers Value Village, Inc.'s  (NYSE:SVV) P/E ratio of 19.6x.  However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/E.     With earnings growth that's superior to most other companies of late, Savers Value Village has been doing relatively well.   One possibility is that the P/E is moderate because investors think this strong earnings performance might be about to tail off.  If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's not quite in favour.      View our latest analysis for Savers Value Village NYSE:SVV Price to Earnings Ratio vs Industry November 18th 2024 Want the full picture on analyst estimates for the company? Then our free report on Savers Value Village will help you uncover what's on the horizon.   What Are Growth Metrics Telling Us About The P/E?   There's an inherent assumption that a company should be matching the market for P/E ratios like Savers Value Village's to be considered reasonable.   Retrospectively, the last year delivered an exceptional 87% gain to the company's bottom line.   The latest three year period has also seen an excellent 177% overall rise in EPS, aided by its short-term performance.  Therefore, it's fair to say the earnings growth recently has been superb for the company.     Looking ahead now, EPS is anticipated to climb by 7.0% during the coming year according to the eight analysts following the company.  With the market predicted to deliver 15% growth , the company is positioned for a weaker earnings result.  With this information, we find it interesting that Savers Value Village is trading at a fairly similar P/E to the market.  It seems most investors are ignoring the fairly limited growth expectations and are willing to pay up for exposure to the stock.  Maintaining these prices will be difficult to achieve as this level of earnings growth is likely to weigh down the shares eventually.    The Bottom Line On Savers Value Village's P/E  It's argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.  Our examination of Savers Value Village's analyst forecasts revealed that its inferior earnings outlook isn't impacting its P/E as much as we would have predicted.  When we see a weak earnings outlook with slower than market growth, we suspect the share price is at risk of declining, sending the moderate P/E lower.  Unless these conditions improve, it's challenging to accept these prices as being reasonable.      You always need to take note of risks, for example - Savers Value Village has 1 warning sign   we think you should be aware of.   Of course, you might find a fantastic investment by looking at a few good candidates. So take a peek at this free list of companies with a strong growth track record, trading on a low P/E.  New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2484932475"}