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Is Bayerische Motoren Werke (BAMXF) a Great Value Stock Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is Bayerische Motoren Werke (BAMXF - Free Report) . BAMXF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.30. This compares to its industry's average Forward P/E of 7.71. Over the past 52 weeks, BAMXF's Forward P/E has been as high as 7.48 and as low as 3.09, with a median of 5.48.

Another notable valuation metric for BAMXF is its P/B ratio of 0.69. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.59. Over the past year, BAMXF's P/B has been as high as 0.71 and as low as 0.43, with a median of 0.51.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BAMXF has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.53.

Finally, we should also recognize that BAMXF has a P/CF ratio of 2.55. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BAMXF's current P/CF looks attractive when compared to its industry's average P/CF of 5.89. Within the past 12 months, BAMXF's P/CF has been as high as 2.62 and as low as 1.57, with a median of 1.88.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Bayerische Motoren Werke is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BAMXF feels like a great value stock at the moment.


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