GANNETT CO INC. Common Stock (TGNA) receives a strong valuation ranking of 81 from InvestorsObserver's data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. TGNA has a better value than 81% 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.
TGNA has a trailing twelve month Price to Earnings (PE) ratio of 9.6 which places it below the histroical average of roughly 15. TGNA is currently trading at a good value due to investors paying less than what the stock is worth in relation to its earnings. TGNA's trailing-12-month earnings per share (EPS) of 1.46 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.
TGNA's 12-month-forward PE to Growth (PEG) ratio of 0.66 is considered a good value as the market is undervaluing TGNA in relation to the company's projected earnings growth. TGNA's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.
All together these valuation metrics paint a pretty strong picture for TGNA at its current price due to a undervalued PEG ratio despite strong growth. The PE and PEG for TGNA are better than the average of the market resulting in a valuation score of 81.