Charles Schwab Corporation Common Stock (SCHW) receives a strong valuation ranking of 77 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. SCHW has a better value than 77% 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.
SCHW gets a 77 Valuation Rank today. Find out what this means to you and get the rest of the rankings on SCHW!
SCHW's trailing-12-month Price to Earnings (PE) ratio of 28.39 puts it above the historical average of roughly 15. SCHW is a poor value at its current trading price as investors are paying more than what its worth in relation to the company's earnings. SCHW's trailing-12-month earnings per share (EPS) of 2.67 does not 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.
SCHW has a 12 month forward PE to Growth (PEG) ratio of 1.37. Markets are overvaluing SCHW in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 2.67'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.
