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Is Knight-Swift Transportation Holdings Inc (KNX) Stock Trading Below Fair Value?

Tuesday, January 31, 2023 03:05 PM | InvestorsObserver Analysts

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Is Knight-Swift Transportation Holdings Inc (KNX) Stock Trading Below Fair Value?

InvestorsObserver gives Knight-Swift Transportation Holdings Inc (KNX) a strong valuation score of 95 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. KNX currently holds a better value than 95% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

Valuation Rank - 95
KNX gets a 95 Valuation Rank today. Find out what this means to you and get the rest of the rankings on KNX!

Metrics Analysis

KNX's trailing-12-month Price to Earnings (PE) ratio of 11.1 puts it around the historical average of roughly 15. KNX is a average value at its current trading price as investors are paying around what its worth in relation to the company's earnings. KNX's trailing-12-month earnings per share (EPS) of 5.33 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.
KNX has a 12 month forward PE to Growth (PEG) ratio of 0.91. Markets are overvaluing KNX in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 5.33'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

KNX's valuation metrics are adequate at its current price due to a fairly valued PEG ratio despite strong growth. KNX's PE and PEG are around the market average resulting in a average valuation score. Click Here to get the full Report on Knight-Swift Transportation Holdings Inc (KNX) stock.

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