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What do the Fundamentals Predict for Crown Castle Inc (CCI) Stock?

Monday, March 25, 2024 03:13 PM | InvestorsObserver Analysts

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What do the Fundamentals Predict for Crown Castle Inc (CCI) Stock?

InvestorsObserver gives Crown Castle Inc (CCI) a weak valuation score of 29 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. CCI currently holds a better value than 29% 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.

Valuation Rank - 29
CCI gets a 29 Valuation Rank today. Find out what this means to you and get the rest of the rankings on CCI!

Metrics Analysis

CCI's trailing-12-month Price to Earnings (PE) ratio of 30.14 puts it above the historical average of roughly 15. CCI is a poor value at its current trading price as investors are paying more than what its worth in relation to the company's earnings. CCI's trailing-12-month earnings per share (EPS) of 3.58 does not 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.
CCI currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 2.78. The market is currently overvaluing CCI in relation to its projected growth due to the PEG ratio being above the fair market value of 1. CCI's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

CCI' has a weak valuation at its current share price on account of a overvalued PEG ratio despite strong growth. CCI'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 Crown Castle Inc (CCI) stock.

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