Should You Buy Tyson Foods, Inc. (TSN) Stock Friday?

InvestorsObserver gives Tyson Foods, Inc. (TSN) a strong valuation score of 71 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. TSN currently holds a better value than 71% 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.

TSN gets a 71 Valuation Rank today. Find out what this means to you and get the rest of the rankings on TSN!

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Metrics Analysis

TSN has a trailing twelve month Price to Earnings (PE) ratio of 12.9 which places it around the histroical average of roughly 15. TSN is currently trading at a average value due to investors paying around what the stock is worth in relation to its earnings. TSN's trailing-12-month earnings per share (EPS) of 6.42 does justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far. TSN has a 12 month forward PE to Growth (PEG) ratio of 1.6. Markets are overvaluing TSN in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 6.42000007'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

TSN' has a weak valuation at its current share price on account of a overvalued PEG ratio due to strong growth. TSN'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 Tyson Foods, Inc. (TSN) stock.