Community Health Systems Inc (CYH) Stock: How Does it Score on Fundamental Metrics?

Community Health Systems Inc (CYH) receives a strong valuation ranking of 94 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. CYH has a better value than 94% 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.

CYH gets a 94 Valuation Rank today. Find out what this means to you and get the rest of the rankings on CYH!

See Full CYH Report

Metrics Analysis

CYH has a trailing twelve month Price to Earnings (PE) ratio of 2.1. The historical average of roughly 15 shows a good value for CYH stock as investors are paying lower share prices relative to the company's earnings. CYH's low trailing PE ratio shows that the firm has been trading below its fair market value recently. Its trailing 12-month earnings per share (EPS) of 2.24 more than 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. CYH has a 12 month forward PE to Growth (PEG) ratio of 0.91. Markets are overvaluing CYH in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 2.24'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 CYH at its current price due to a fairly valued PEG ratio due to strong growth. The PE and PEG for CYH are around the average of the market resulting in a valuation score of 94. Click Here to get the full Report on Community Health Systems Inc (CYH) stock.