Camping World Holdings Inc (CWH) receives a weak valuation score of 36 from InvestorsObserver's analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. CWH holds a better value than 36% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.
Metrics Analysis
CWH's trailing-12-month Price to Earnings (PE) ratio of 13.8 puts it around the historical average of roughly 15. CWH is a average value at its current trading price as investors are paying around what its worth in relation to the company's earnings. CWH's trailing-12-month earnings per share (EPS) of 2.00 does justify what it is currently trading at in the market. Trailing PE ratios, however, do not factor in a company's projected growth rate, resulting in some firms having high PE ratios due to high growth potentially enticing investors even if current earnings are low.
CWH currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 0.31. The market is currently undervaluing CWH in relation to its projected growth due to the PEG ratio being below the fair market value of 1. CWH's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.
Summary
CWH's valuation metrics are strong at its current price due to a undervalued PEG ratio despite strong growth. CWH's PE and PEG are better than the market average resulting in a above average valuation score.
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