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Is Vishay Intertechnology (VSH) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Vishay Intertechnology (VSH - Free Report) . VSH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.86, while its industry has an average P/E of 23.82. Over the last 12 months, VSH's Forward P/E has been as high as 15.59 and as low as 10.75, with a median of 13.02.

VSH is also sporting a PEG ratio of 1.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VSH's industry has an average PEG of 2.60 right now. Over the last 12 months, VSH's PEG has been as high as 2.67 and as low as 0.55, with a median of 1.18.

Another notable valuation metric for VSH is its P/B ratio of 2.22. The P/B ratio pits a stock's market value against 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 2.49. Over the past year, VSH's P/B has been as high as 2.49 and as low as 1.42, with a median of 1.93.

Finally, our model also underscores that VSH has a P/CF ratio of 16.57. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 28.08. Over the past 52 weeks, VSH's P/CF has been as high as 23.27 and as low as 10.48, with a median of 17.21.

Value investors will likely look at more than just these metrics, but the above data helps show that Vishay Intertechnology is likely undervalued currently. And when considering the strength of its earnings outlook, VSH sticks out at as one of the market's strongest value stocks.


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