Nordstrom Inc (JWN) receives a strong valuation score of 72 from InvestorsObserver analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. JWN holds a better value than 72% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.
JWN gets a 72 Valuation Rank today. Find out what this means to you and get the rest of the rankings on JWN!
JWN has a trailing twelve month Price to Earnings (PE) ratio of 9. The historical average of roughly 15 shows a good value for JWN stock as investors are paying lower share prices relative to the company's earnings. JWN'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 2.53 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.
JWN has a 12 month forward PE to Growth (PEG) ratio of 1.53. Markets are overvaluing JWN in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 2.53'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
JWN' has a weak valuation at its current share price on account of a overvalued PEG ratio due to strong growth. JWN's PE and PEG are worse than the market average leading to a below average valuation score.
Click Here to get the full Report on Nordstrom Inc (JWN) stock.
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