TRC is now overvalued and could go down -23%

Based on our analysis, Tejon Ranch Company has received a fairly valued rating of 2 out of 5 stars from Cashu. This rating indicates that the company's current market price does not reflect its potential for growth based on key financial metrics. One notable financial metric is the Price-to-Earnings (PE) Ratio, which stands at an exceptionally high 233.77 compared to the sector average of 21.20. A high PE ratio may suggest that the company's stock is overvalued relative to its earnings, indicating that investors might be paying too much for each dollar of earnings generated. This can be a red flag for potential investors assessing the company's valuation. Another area of concern is the Return on Equity (ROE) Ratio, which is reported at 0.57, while the sector average is 1.15. ROE measures how effectively a company uses shareholder equity to generate profits. A lower ROE than the sector average suggests that Tejon Ranch may not be utilizing its equity as efficiently as its peers, potentially limiting its profitability and attractiveness to investors. Additionally, the Return on Assets (ROA) Ratio stands at 0.44, compared to the sector's 0.50. ROA indicates how well a company generates profit from its assets. A lower ROA suggests that Tejon Ranch may not be as effective in converting its asset base into earnings compared to other companies in the sector. In summary, while Tejon Ranch shows strengths in some areas, its high PE ratio, low ROE, and lower ROA relative to the sector metrics indicate that it may be fairly valued at this time. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.