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Is Graphic Packaging Holding Company (GPK) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Graphic Packaging Holding Company (GPK - Free Report) . GPK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.50 right now. For comparison, its industry sports an average P/E of 12.70. Over the past 52 weeks, GPK's Forward P/E has been as high as 17.63 and as low as 8.29, with a median of 9.58.
Another notable valuation metric for GPK is its P/B ratio of 3.35. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 8.98. Over the past 12 months, GPK's P/B has been as high as 3.85 and as low as 2.95, with a median of 3.32.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GPK has a P/S ratio of 0.72. This compares to its industry's average P/S of 0.82.
Finally, our model also underscores that GPK has a P/CF ratio of 6.86. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 23.61. Within the past 12 months, GPK's P/CF has been as high as 9.12 and as low as 6.35, with a median of 8.27.
These are just a handful of the figures considered in Graphic Packaging Holding Company'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 GPK is an impressive value stock right now.
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Is Graphic Packaging Holding Company (GPK) Stock Undervalued Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Graphic Packaging Holding Company (GPK - Free Report) . GPK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.50 right now. For comparison, its industry sports an average P/E of 12.70. Over the past 52 weeks, GPK's Forward P/E has been as high as 17.63 and as low as 8.29, with a median of 9.58.
Another notable valuation metric for GPK is its P/B ratio of 3.35. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 8.98. Over the past 12 months, GPK's P/B has been as high as 3.85 and as low as 2.95, with a median of 3.32.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GPK has a P/S ratio of 0.72. This compares to its industry's average P/S of 0.82.
Finally, our model also underscores that GPK has a P/CF ratio of 6.86. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 23.61. Within the past 12 months, GPK's P/CF has been as high as 9.12 and as low as 6.35, with a median of 8.27.
These are just a handful of the figures considered in Graphic Packaging Holding Company'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 GPK is an impressive value stock right now.