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Is Yamaha Motor Co., Ltd. (YAMHF) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Yamaha Motor Co., Ltd. (YAMHF - Free Report) . YAMHF is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.93 right now. For comparison, its industry sports an average P/E of 10.96. YAMHF's Forward P/E has been as high as 16.23 and as low as 7.61, with a median of 10.33, all within the past year.

Finally, we should also recognize that YAMHF has a P/CF ratio of 4.69. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.55. Within the past 12 months, YAMHF's P/CF has been as high as 10.23 and as low as 4.50, with a median of 7.86.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Yamaha Motor Co., Ltd. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, YAMHF feels like a great value stock at the moment.


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