Should You Buy Bank of Hawaii Corp (BOH) Stock Friday?

InvestorsObserver gives Bank of Hawaii Corp (BOH) a strong valuation score of 77 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. BOH currently holds a better value than 77% 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.

BOH gets a 77 Valuation Rank today. Find out what this means to you and get the rest of the rankings on BOH!

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Metrics Analysis

BOH has a trailing twelve month Price to Earnings (PE) ratio of 9.31. The historical average of roughly 15 shows a good value for BOH stock as investors are paying lower share prices relative to the company's earnings. BOH'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 4.93 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. BOH has a 12 month forward PE to Growth (PEG) ratio of 1.36. Markets are overvaluing BOH in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 4.93'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

BOH' has a weak valuation at its current share price on account of a overvalued PEG ratio due to strong growth. BOH's PE and PEG are worse than the market average leading to a below average valuation score. Click Here to get the full Report on Bank of Hawaii Corp (BOH) stock.