It's been a great morning session for Union Pacific investors, who saw their shares rise 9.77% to a price of $212.98 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
The Union Pacific Corporation (Union Pacific) is a publicly traded railroad holding company. The company belongs to the Energy & Transportation sector, which has an average price to earnings (P/E) ratio of None and an average price to book (P/B) ratio of None. In contrast, Union Pacific has a trailing 12 month P/E ratio of 18.93 and a P/B ratio of 11.39.
Union Pacific's PEG ratio is 2.105, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.