Is ZTO Express (Cayman) Inc (ZTO) Stock Trading Below Fair Value?

ZTO Express (Cayman) Inc (ZTO) receives a strong valuation score of 96 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. ZTO holds a better value than 96% 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.

ZTO gets a 96 Valuation Rank today. Find out what this means to you and get the rest of the rankings on ZTO!

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Metrics Analysis

ZTO has a trailing twelve month Price to Earnings (PE) ratio of 17.4. The historical average of roughly 15 shows a average value for ZTO stock as investors are paying fair share prices relative to the company's earnings. ZTO'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 1.07 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. ZTO has a 12 month forward PE to Growth (PEG) ratio of 1.06. Markets are overvaluing ZTO in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 1.07'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 adequate picture for ZTO at its current price due to a fairly valued PEG ratio despite strong growth. The PE and PEG for ZTO are around the average of the market resulting in a valuation score of 96. Click Here to get the full Report on ZTO Express (Cayman) Inc (ZTO) stock.