Is C.H. Robinson Worldwide (CHRW) Pricing Look Stretched After Strong Multi Year Share Gains
C.H. Robinson Worldwide, Inc. CHRW | 0.00 |
- If you are wondering whether C.H. Robinson Worldwide is still reasonably priced after its recent run, this article will walk through what the current share price might be implying about value.
- The stock last closed at US$179.64, with returns of 9.7% year to date and 78.7% over 1 year, although the share price has seen a 3.0% decline over 7 days and a 9.6% decline over 30 days.
- Recent coverage around C.H. Robinson Worldwide has focused on its role in global freight forwarding and logistics services, and how it fits into broad supply chain and trade trends. This context helps frame why the stock has seen both strong multi year returns of 88.8% over 3 years and 110.4% over 5 years, as well as some short term pullbacks.
- Right now, C.H. Robinson Worldwide has a valuation score of 0/6. The next sections will compare what different valuation approaches say about the stock, and later on we will look at an even more complete way to think about valuation beyond any single model.
C.H. Robinson Worldwide scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
Approach 1: C.H. Robinson Worldwide Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow, or DCF, takes projected future cash flows, discounts them back to today using a required return, and adds them up to estimate what the business might be worth per share right now.
For C.H. Robinson Worldwide, the model uses a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about $842.4 million. Analyst inputs extend out to 2030, with the 2030 free cash flow projection at $891.3 million. Simply Wall St then extrapolates beyond the analyst horizon to build a 10 year path of discounted free cash flows in $.
Putting all of those discounted projections together, the DCF output suggests an intrinsic value of about $123.80 per share. Compared with the recent share price of $179.64, this specific model implies the stock is around 45.1% overvalued based on these assumptions and cash flow estimates.
Result: OVERVALUED
Our Discounted Cash Flow (DCF) analysis suggests C.H. Robinson Worldwide may be overvalued by 45.1%. Discover 50 high quality undervalued stocks or create your own screener to find better value opportunities.
Approach 2: C.H. Robinson Worldwide Price vs Earnings
For a profitable company, the P/E ratio is a useful yardstick because it ties what you pay directly to current earnings. It gives you a quick sense of how much the market is willing to pay for each dollar of profit.
What counts as a “normal” P/E depends on how investors view growth prospects and risk. Higher expected growth or lower perceived risk often support a higher P/E, while slower expected growth or higher risk usually point to a lower, more cautious multiple.
C.H. Robinson Worldwide currently trades on a P/E of 36.30x. That sits above the Logistics industry average P/E of about 15.95x and also above the peer average of 18.22x. Simply Wall St also calculates a proprietary “Fair Ratio” for the stock of 19.82x, which reflects factors such as earnings growth, industry, profit margin, market cap and risk profile.
The Fair Ratio is more tailored than a simple peer or industry comparison because it adjusts for company specific features rather than assuming all Logistics names deserve the same multiple. Lining up 36.30x against a Fair Ratio of 19.82x suggests the shares are trading at a richer level than this framework would imply.
Result: OVERVALUED
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Upgrade Your Decision Making: Choose your C.H. Robinson Worldwide Narrative
Earlier we mentioned that there is an even better way to understand valuation. On Simply Wall St's Community page you can use Narratives, where you write your own story for C.H. Robinson Worldwide, connect that story to a set of revenue, earnings and margin estimates, see the fair value those forecasts imply, and then compare that fair value with the current price to help you decide what to do. The Narrative updates automatically when fresh news or earnings arrive. This means a bullish investor who thinks the shares could be worth US$225, a more cautious investor who sees fair value closer to US$130.54, and someone who aligns with the lowest analyst target of US$71 can all anchor their decisions to a clear, number backed view of what they believe.
For C.H. Robinson Worldwide, here are previews of two leading C.H. Robinson Worldwide Narratives for quick comparison:
Fair value in this narrative: US$193.52
Implied valuation gap versus the last close: about 9.0% below this fair value estimate
Revenue growth assumption: 5.29% a year
- Focuses on AI driven automation and digital tools that support efficiency, margins and customer retention across the freight network.
- Highlights investments in integrated, data rich logistics and global expansion that tie into outsourcing trends and more complex supply chains.
- Flags trade policy, tech competition and reliance on customs revenue as key risks to earnings stability and margins.
Fair value in this narrative: US$130.54
Implied valuation gap versus the last close: about 37.6% above this fair value estimate
Revenue growth assumption: 3.05% a year
- Argues that onshoring, reshoring and digital freight platforms could reduce cross border volume and weaken the broker role over time.
- Points to regulatory and compliance costs, plus potential digital disintermediation, as pressures on pricing power and margins.
- Sets out a lower Fair Value anchored to the bearish end of analyst targets, with earnings growth assumptions that are more cautious than consensus.
If you want to see each storyline fully laid out, including the earnings paths, risks and valuation logic behind them, you can head straight to the detailed community narratives for C.H. Robinson Worldwide and choose which one fits closest to your own view.
Do you think there's more to the story for C.H. Robinson Worldwide? Head over to our Community to see what others are saying!
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
