KN is now undervalued and could go up 117%

Based on our analysis, Knowles Corporation has received an undervalued rating of 4 out of 5 stars from Cashu due to several key financial ratios that indicate potential for improvement and growth. The Price-to-Earnings (PE) ratio for Knowles stands at 73.09, significantly higher than the sector average of 26.65. A high PE ratio may suggest that the market has high expectations for future earnings; however, it can also indicate that the stock is overvalued. Conversely, the Price-to-Book (PB) ratio for Knowles is 2.32, which is lower than the sector average of 3.50. This suggests that Knowles’ assets are being valued more favorably compared to its peers, indicating potential undervaluation. The company’s net profit margin is currently at -42.96, compared to the sector’s -15.24. While negative margins can be a red flag, they may also indicate room for operational improvement. Additionally, the Return on Equity (ROE) for Knowles is -31.46, worse than the sector’s -21.98, highlighting challenges in generating profit from equity. Similar concerns arise with the Return on Assets ratio, which stands at -21.27 versus the sector’s -12.89. Together, these ratios paint a picture of a company facing challenges but also one that may rebound as it addresses its operational issues. The lower PB ratio relative to its peers implies that Knowles could be undervalued, presenting potential opportunities for investors willing to buy into the company’s turnaround. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.