InvestorsObserver gives US Bancorp (USB) a strong valuation score of 64 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. USB currently holds a better value than 64% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.
USB has a trailing twelve month Price to Earnings (PE) ratio of 12.2. The historical average of roughly 15 shows a average value for USB stock as investors are paying fair share prices relative to the company’s earnings. USB’s average trailing PE ratio shows that the firm has been trading around its fair market value recently. Its trailing 12-month earnings per share (EPS) of 4.67 justifies the stock’s current price. However, trailing PE ratios do not factor in the company’s projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings. USB has a 12 month forward PE to Growth (PEG) ratio of 1.72. Markets are overvaluing USB in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 4.67000007’s PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm’s future rather than its past.
USB’s valuation metrics are weak at its current price due to a overvalued PEG ratio due to strong growth. USB’s PE and PEG are worse than the market average resulting in a below average valuation score. Click Here to get the full Report on US Bancorp (USB) stock.