Is J B Hunt Transport Services Inc (JBHT) Stock Trading Below Fair Value?

Tuesday, September 27, 2022 03:15 PM | InvestorsObserver Analysts

Mentioned in this article

InvestorsObserver gives J B Hunt Transport Services Inc (JBHT) a strong valuation score of 90 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. JBHT currently holds a better value than 90% 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.

JBHT gets a 90 Valuation Rank today. Find out what this means to you and get the rest of the rankings on JBHT!
See Full JBHT Report

Metrics Analysis

JBHT has a trailing twelve month Price to Earnings (PE) ratio of 18.3. The historical average of roughly 15 shows a average value for JBHT stock as investors are paying fair share prices relative to the company's earnings. JBHT'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 8.87 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.
JBHT has a 12 month forward PE to Growth (PEG) ratio of 1.14. Markets are overvaluing JBHT in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 8.86999988'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.

Summary

All together these valuation metrics paint a pretty adequate picture for JBHT at its current price due to a fairly valued PEG ratio despite strong growth. The PE and PEG for JBHT are around the average of the market resulting in a valuation score of 90. Click Here to get the full Report on J B Hunt Transport Services Inc (JBHT) stock.

Share this article:

Related Articles