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Should Value Investors Buy Yamaha Motor Co. (YAMHF) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Yamaha Motor Co. (YAMHF - Free Report) . YAMHF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 5.83, while its industry has an average P/E of 8.18. YAMHF's Forward P/E has been as high as 9.24 and as low as 5.18, with a median of 6.17, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. YAMHF has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.47.

Finally, investors will want to recognize that YAMHF has a P/CF ratio of 3.93. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. YAMHF's P/CF compares to its industry's average P/CF of 3.98. Over the past year, YAMHF's P/CF has been as high as 5.44 and as low as 3.48, with a median of 4.13.

These are just a handful of the figures considered in Yamaha Motor Co.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that YAMHF is an impressive value stock right now.


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