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Scorpio Tankers Inc. (STNG) Stock: How Does it Score on Valuation Metrics?

Wednesday, December 07, 2022 01:11 PM | InvestorsObserver Analysts

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Scorpio Tankers Inc. (STNG) Stock: How Does it Score on Valuation Metrics?

Scorpio Tankers Inc. (STNG) receives a weak valuation score of 3 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. STNG holds a better value than 3% 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 - 3
STNG gets a 3 Valuation Rank today. Find out what this means to you and get the rest of the rankings on STNG!

Metrics Analysis

STNG's trailing-12-month Price to Earnings (PE) ratio of 10.6 puts it around the historical average of roughly 15. STNG is a average value at its current trading price as investors are paying around what its worth in relation to the company's earnings. STNG's trailing-12-month earnings per share (EPS) of 5.03 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.
STNG has a 12 month forward PE to Growth (PEG) ratio of 0.11. Markets are overvaluing STNG in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 5.03'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

STNG' has a strong valuation at its current share price on account of a undervalued PEG ratio despite strong growth. STNG's PE and PEG are better than the market average leading to a above average valuation score. Click Here to get the full Report on Scorpio Tankers Inc. (STNG) stock.

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