US Bancorp (USB) stock in figures
Investors Observer gives US Bancorp (USB) a strong valuation score of 64 based on its analysis. The proprietary rating system takes into account the underlying health of a company by analyzing its stock price, earnings and rate of growth. USB currently holds better value than 64% of the shares based on these metrics. Long-term buy and hold investors should find the most relevant valuation ranking system when making investment decisions.
USB has a 12-month price-to-earnings (PE) ratio of 12.2. The historical average of around 15 shows an average value for USB stocks as investors pay fair prices to the company’s earnings. USB’s average PE follower ratio shows that the company has recently traded around its fair market value. Its 12-month earnings per share (EPS) of 4.67 justifies the current share price. However, leakage PE ratios do not take into account the company’s projected growth rate, so many newer companies have high PE ratios due to high growth potential attracting investors despite insufficient profits. USB has a 12-month forward PEG to growth ratio of 1.72. The markets are overvaluing USB relative to its projected growth, as its PEG ratio is currently above fair market value of 1. The PEG of 4.67000007 comes from its forward price / earnings ratio divided by its growth rate. PEG ratios are one of the most used valuation metrics due to the incorporation of more fundamental business metrics and the focus on the future of the business rather than its past.
USB’s valuation metrics are low at its current price due to an overvalued PEG ratio due to strong growth. USB’s PE and PEG are worse than the market average, resulting in a lower than average review score. Click here for the full US Bancorp (USB) stock report.