Is It Undervalued? Look at the P/E Ratio: Union Pacific Corporation (UNP), The Advisory Board Company (ABCO)

Union Pacific Corporation (NYSE:UNP) shares were trading higher by 0.37 percent ($0.42) at $113.05 a piece in Wednesday’s session. It had closed the previous session at $112.63. UNP trades with a P/S ratio of 4.39. This is lower than the both industry’s 89.99 and the wider sector’s 13.12. A low price-to-sales ratio, typically less than 1.0, is considered a good value. Also, it has an estimated price-earnings (P/E) multiple of 17.53 and a trailing 12-month price-earnings (P/E) multiple of 20.51. Shares of UNP have uptrended 3.86% in the past three months, while the S&P 500 has moved -1.37% in that time. Union Pacific Corporation (UNP) has a market cap of $90.9 billion and over the last 12 months, Union Pacific Corporation (NYSE:UNP) has gone stronger by 17.1%. During the last 52 weeks, the (NYSE:UNP) price has been as high as $116.93 and as low as $87.06. Union Pacific Corporation earnings have risen with an annualized rate of 8.6% over the last 5 years.

Union Pacific Corporation (Mean Target Price: $120.26)

The average 1-year price target for Union Pacific Corporation (UNP) — averaging the work of different analysts — reveals a mean PT of $120.26/share. That’s a potential 6.38 increase relative to where Union Pacific Corporation (NYSE:UNP) has been trading recently. The current price is seen ranging between $112.56 and $113.22. There are brokerage firms with lower targets than the average, including one setting a price target of $102. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $137.

Union Pacific Corporation (UNP) Consensus Recommendation

The collective rating of 2.4 for Union Pacific Corporation (NYSE:UNP) also leans strongly towards the neutral end of the spectrum. Of the 29 analysts surveyed by Reuters that track UNP 17 of them rate its stock a hold. The other 12, though not evenly; between analysts who think you should buy Union Pacific Corporation versus those who think you should sell it. A 12 analysts rate it as either a buy or a strong buy, while0 believe that investors should either steer clear of UNP or, if they already own its stock, sell it.

Is The Advisory Board Company (NASDAQ:ABCO) Cheap From Peers?

The Advisory Board Company (ABCO) pulled off a 0.37 percent gain and now trades for $53.9. ABCO comes in with a P/S ratio of 2.74 that’s greater than 1, potentially implying that it could be expensive relative to the overall sector (13.12) and its peers (89.99). Also, it has an estimated price-earnings (P/E) multiple of 26.09 and a trailing 12-month price-earnings (P/E) multiple of 20.35. During the last 52 weeks, the price has been as high as $59.5 and as low as $24.85. The Advisory Board Company (NASDAQ:ABCO) earnings have risen with a quarterly rate of 16.8% over the last 5 years. Shares of ABCO have sank -5.19% in the past three monthswhile the S&P 500 has dropped -8.48% in that time.

The Advisory Board Company (Price Objective: $54.16)

The Advisory Board Company (NASDAQ:ABCO) has a market cap of $2.19 billion and over the last 12 months, ABCO has risen by 25.29%. The average 1-year price target for (ABCO) reveals an average price target of $54.16 per share. That’s a potential 0.48 gain from where (NASDAQ:ABCO) has been trading recently. There are brokerage firms with lower targets than the average, including one setting a price target of $53. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $56.

Analyst Thoughts About The Advisory Board Company (NASDAQ:ABCO)

The consensus recommendation — averaging the work of 14 analysts — of 2.9 for The Advisory Board Company (ABCO) points to moderate case. Of the analysts surveyed by Reuters that track The Advisory Board Company 13 of them rate its stock a hold. The other 1 are split, though not evenly, between analysts who think you should buy its stock versus those who think you should sell it. A 1 analysts rate it as either a buy or a strong buy, while 0 believe that investors should either steer clear of (NASDAQ:ABCO) or, if they already own its stock, sell it.