First Horizon shares fell by -12.27% during the day's morning session, and are now trading at a price of $21.73. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.
First Horizon Corporation is the banking holding company for First Horizon Bank providing various financial services. The company belongs to the Financial Services sector, which has an average price to earnings (P/E) ratio of 14.34 and an average price to book (P/B) ratio of 1.57. In contrast, First Horizon has a trailing 12 month P/E ratio of 14.2 and a P/B ratio of 1.88.
First Horizon's PEG ratio is 1.67, 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.