Should You Buy First Horizon Corp (FHN) Stock Tuesday?

First Horizon Corp (FHN) receives a weak valuation score of 32 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. FHN holds a better value than 32% 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.

FHN gets a 32 Valuation Rank today. Find out what this means to you and get the rest of the rankings on FHN!

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Metrics Analysis

FHN has a trailing twelve month Price to Earnings (PE) ratio of 5.9. The historical average of roughly 15 shows a good value for FHN stock as investors are paying lower share prices relative to the company's earnings. FHN'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 1.62 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. FHN has a 12 month forward PE to Growth (PEG) ratio of 2.78. Markets are overvaluing FHN in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 1.62'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 poor picture for FHN at its current price due to a overvalued PEG ratio due to strong growth. The PE and PEG for FHN are worse than the average of the market resulting in a valuation score of 32. Click Here to get the full Report on First Horizon Corp (FHN) stock.