ZTO Express (Cayman) Inc (ZTO) receives a strong valuation ranking of 96 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. ZTO has a better value than 96% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.
ZTO gets a 96 Valuation Rank today. Find out what this means to you and get the rest of the rankings on ZTO!
ZTO's trailing-12-month Price to Earnings (PE) ratio of 18.8 puts it around the historical average of roughly 15. ZTO is a average value at its current trading price as investors are paying around what its worth in relation to the company's earnings. ZTO's trailing-12-month earnings per share (EPS) of 1.18 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.
ZTO currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 1.08. The market is currently fairly valuing ZTO in relation to its projected growth due to the PEG ratio being around the fair market value of 1. ZTO'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.
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.
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