#srcl

Stericycle (SRCL) USA

Clean Harbors (CLH) USA

Veolia (VIE) France

Asia Medical Enviro Services,  Singapore

New Post has been published on http://www.stockmarketsdaily.com/undervalued-buy-stericycle-inc-nasdaqsrcl/11189/

Fundamental Analysis: Stericycle Inc (NASDAQ:SRCL)

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Stericycle, Inc. (NASDAQ:SRCL)  is a medical waste management company that investors have been jumping on due to operating in the healthcare industry, which makes them more immune to economic conditions than other waste management companies. As such we have a look at the stock’s fundamental earning and growth estimates which show based on market consensus perhaps the pricing of SRCL has become somewhat overblown. [Trend Analysis]

Stericycle, Inc. (NASDAQ:SRCL) last traded at $137.54 after moving up 0.99% for the trading day.

SRCL is trading with a trailing 12 month P/E multiple of 36.29 and an estimated forward P/E multiple of 26.16. The stock has an estimated 5 year annual growth of 15.00% and a PEG multiple of 2.42.

From a value investor perspective, as mentioned Stericycle, Inc. trades on an estimated forward P/E multiple of 26.16. The current estimated forward P/E ratio for the market as a whole is approximately 19.00. Therefore, for value investors SRCL appears to be overpriced.

For growth investors, who are more interested in growth into the longer term for the stock, we look at the PEG multiple (P/E to growth) of Stericycle, Inc. (NASDAQ:SRCL). This PEG multiple takes into account the expected long term growth in earnings of Stericycle, Inc. rather than merely the growth for one full earnings period ahead.

As a rule of thumb, growth investors often believe a stock with a PEG of between 0 and 1 is 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 SRCL being 2.42, we consider Stericycle, Inc. to likely be overpriced.