Analysis and Insights
To determine if Service Corporation International (SCI) is overvalued, we analyze its valuation metrics, technical indicators, and recent market performance.
Valuation Analysis:
SCI's current price is $85.40, with a trailing P/E ratio of 22.59, higher than the industry average. The EV/EBITDA ratio is 12.63, and the P/S ratio is 6.88, indicating a premium valuation compared to peers.
Technical Analysis:
The RSI is 66.57, indicating a neutral position. The MACD shows a slight upward trend, and the stock is trading near its 20-day SMA but below the 50-day SMA, suggesting short-term weakness.
Market Sentiment:
SCI recently gained 4.3% due to strong earnings, reflecting positive market sentiment. However, the PE ratio exceeds industry averages, suggesting high growth expectations.
Conclusion:
SCI appears fairly valued but not significantly overvalued. Investors should assess if future growth aligns with its current valuation.