Looking for growth without the hefty price tag? Consider NASDAQ:APP.

Our stock screening tool has pinpointed APPLOVIN CORP-CLASS A (NASDAQ:APP) as a growth stock that isn't overvalued. NASDAQ:APP is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Understanding NASDAQ:APP's Growth

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:APP has achieved a 7 out of 10:

• APP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 3816.67%, which is quite impressive.
• The Revenue has grown by 37.31% in the past year. This is a very strong growth!
• The Revenue has been growing by 46.69% on average over the past years. This is a very strong growth!
• APP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.41% yearly.
• The Revenue is expected to grow by 14.27% on average over the next years. This is quite good.

Analyzing Valuation Metrics

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:APP, the assigned 5 reflects its valuation:

• APP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. APP is cheaper than 66.20% of the companies in the same industry.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APP indicates a somewhat cheap valuation: APP is cheaper than 74.65% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of APP indicates a somewhat cheap valuation: APP is cheaper than 75.00% of the companies listed in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of APP may justify a higher PE ratio.
• A more expensive valuation may be justified as APP's earnings are expected to grow with 72.18% in the coming years.

Looking at the Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:APP scores a 7 out of 10:

• APP has an Altman-Z score of 7.22. This indicates that APP is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of APP (7.22) is better than 78.87% of its industry peers.
• The Debt to FCF ratio of APP is 2.52, which is a good value as it means it would take APP, 2.52 years of fcf income to pay off all of its debts.
• With a decent Debt to FCF ratio value of 2.52, APP is doing good in the industry, outperforming 65.14% of the companies in the same industry.
• APP has a Current Ratio of 2.28. This indicates that APP is financially healthy and has no problem in meeting its short term obligations.
• APP has a Current ratio of 2.28. This is in the better half of the industry: APP outperforms 63.73% of its industry peers.
• APP has a Quick Ratio of 2.28. This indicates that APP is financially healthy and has no problem in meeting its short term obligations.
• APP has a Quick ratio of 2.28. This is in the better half of the industry: APP outperforms 65.14% of its industry peers.

What does the Profitability looks like for NASDAQ:APP

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:APP has earned a 6 out of 10:

• APP has a better Return On Assets (15.63%) than 93.31% of its industry peers.
• Looking at the Return On Equity, with a value of 101.08%, APP belongs to the top of the industry, outperforming 98.94% of the companies in the same industry.
• The Return On Invested Capital of APP (21.13%) is better than 95.77% of its industry peers.
• The last Return On Invested Capital (21.13%) for APP is above the 3 year average (4.97%), which is a sign of increasing profitability.
• APP's Profit Margin of 20.82% is amongst the best of the industry. APP outperforms 88.73% of its industry peers.
• APP has a Operating Margin of 30.69%. This is amongst the best in the industry. APP outperforms 96.48% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Our latest full fundamental report of APP contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.