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Cal-Maine Foods Inc (CALM) Stock: How Does it Score on Valuation Metrics?

Thursday, September 29, 2022 01:02 PM | InvestorsObserver Analysts

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Cal-Maine Foods Inc (CALM) Stock: How Does it Score on Valuation Metrics?

Cal-Maine Foods Inc (CALM) receives a weak valuation ranking of 8 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. CALM has a better value than 8% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 8
CALM gets a 8 Valuation Rank today. Find out what this means to you and get the rest of the rankings on CALM!

Metrics Analysis

CALM has a trailing twelve month Price to Earnings (PE) ratio of 10.7 which places it around the histroical average of roughly 15. CALM is currently trading at a average value due to investors paying around what the stock is worth in relation to its earnings. CALM's trailing-12-month earnings per share (EPS) of 5.66 does justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far.
CALM has a 12 month forward PE to Growth (PEG) ratio of 5.65. Markets are overvaluing CALM in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 5.65999984'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

CALM's valuation metrics are weak at its current price due to a overvalued PEG ratio due to strong growth. CALM'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 Cal-Maine Foods Inc (CALM) stock.

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