InvestorsObserver gives Tronox Holdings PLC (TROX) a weak valuation score of 16 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. TROX currently holds a better value than 16% 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.
TROX gets a 16 Valuation Rank today. Find out what this means to you and get the rest of the rankings on TROX!
TROX has a trailing twelve month Price to Earnings (PE) ratio of 3.33. The historical average of roughly 15 shows a good value for TROX stock as investors are paying lower share prices relative to the company's earnings. TROX'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 -0.88 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.
TROX currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 3.78. The market is currently overvaluing TROX in relation to its projected growth due to the PEG ratio being above the fair market value of 1. TROX'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.
