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Is CSX Corporation (CSX) Stock Trading Below Fair Value?

Friday, December 01, 2023 12:20 PM | InvestorsObserver Analysts

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Is CSX Corporation (CSX) Stock Trading Below Fair Value?

CSX Corporation (CSX) receives a weak valuation ranking of 37 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. CSX has a better value than 37% 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 - 37
CSX gets a 37 Valuation Rank today. Find out what this means to you and get the rest of the rankings on CSX!

Metrics Analysis

CSX's trailing-12-month Price to Earnings (PE) ratio of 16.46 puts it around the historical average of roughly 15. CSX is a average value at its current trading price as investors are paying around what its worth in relation to the company's earnings. CSX's trailing-12-month earnings per share (EPS) of 2.41 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.
CSX currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 2.61. The market is currently overvaluing CSX in relation to its projected growth due to the PEG ratio being above the fair market value of 1. CSX's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.


All together these valuation metrics paint a pretty poor picture for CSX at its current price due to a overvalued PEG ratio due to strong growth. The PE and PEG for CSX are worse than the average of the market resulting in a valuation score of 37. Click Here to get the full Report on CSX Corporation (CSX) stock.

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