Tyson Foods, Inc. (TSN) Stock: How Does it Score on Valuation Metrics?

Tyson Foods, Inc. (TSN) receives a strong valuation ranking of 76 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. TSN has a better value than 76% 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.

TSN gets a 76 Valuation Rank today. Find out what this means to you and get the rest of the rankings on TSN!

See Full TSN Report

Metrics Analysis

TSN's trailing-12-month Price to Earnings (PE) ratio of 9.4 puts it below the historical average of roughly 15. TSN is a good value at its current trading price as investors are paying less than what its worth in relation to the company's earnings. TSN's trailing-12-month earnings per share (EPS) of 8.34 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. TSN's 12-month-forward PE to Growth (PEG) ratio of 1.45 is considered a poor value as the market is overvaluing TSN in relation to the company's projected earnings growth due. TSN's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.

Summary

TSN's valuation metrics are weak at its current price due to a overvalued PEG ratio due to strong growth. TSN's PE and PEG are worse than the market average resulting in a below average valuation score. Click Here to get the full Report on Tyson Foods, Inc. (TSN) stock.