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Capital One Financial Corp. (COF) Stock: How Does it Score on Valuation Metrics?

Tuesday, May 17, 2022 12:38 PM | InvestorsObserver Analysts
Capital One Financial Corp. (COF) Stock: How Does it Score on Valuation Metrics?

Capital One Financial Corp. (COF) receives a weak valuation score of 24 from InvestorsObserver 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. COF holds a better value than 24% 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.

Valuation Rank - 24
COF gets a 24 Valuation Rank today. Find out what this means to you and get the rest of the rankings on COF!

Metrics Analysis

COF's trailing-12-month Price to Earnings (PE) ratio of 4.5 puts it below the historical average of roughly 15. COF is a good value at its current trading price as investors are paying less than what its worth in relation to the company's earnings. COF's trailing-12-month earnings per share (EPS) of 25.52 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.
COF has a 12 month forward PE to Growth (PEG) ratio of 0.33. Markets are overvaluing COF in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 25.5200004'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 strong picture for COF at its current price due to a undervalued PEG ratio despite strong growth. The PE and PEG for COF are better than the average of the market resulting in a valuation score of 24. Click Here to get the full Report on Capital One Financial Corp. (COF) stock.

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