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Is XPO Logistics Inc (XPO) Stock Over or Undervalued?

Tuesday, August 16, 2022 03:34 PM | InvestorsObserver Analysts
Is XPO Logistics Inc (XPO) Stock Over or Undervalued?

XPO Logistics Inc (XPO) receives a strong valuation score of 81 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. XPO holds a better value than 81% 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.

Valuation Rank - 81
XPO gets a 81 Valuation Rank today. Find out what this means to you and get the rest of the rankings on XPO!

Metrics Analysis

XPO has a trailing twelve month Price to Earnings (PE) ratio of 10.1. The historical average of roughly 15 shows a average value for XPO stock as investors are paying fair share prices relative to the company's earnings. XPO's average trailing PE ratio shows that the firm has been trading around its fair market value recently. Its trailing 12-month earnings per share (EPS) of 6.00 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.
XPO has a 12 month forward PE to Growth (PEG) ratio of 0.73. Markets are overvaluing XPO in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 6'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

All together these valuation metrics paint a pretty strong picture for XPO at its current price due to a undervalued PEG ratio despite strong growth. The PE and PEG for XPO are better than the average of the market resulting in a valuation score of 81. Click Here to get the full Report on XPO Logistics Inc (XPO) stock.

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