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Is Carlyle Group (CG) Stock Undervalued 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 stock to keep an eye on is Carlyle Group (CG - Free Report) . CG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.36 right now. For comparison, its industry sports an average P/E of 12.32. Over the past 52 weeks, CG's Forward P/E has been as high as 9.76 and as low as 7.21, with a median of 8.49.

Another valuation metric that we should highlight is CG's P/B ratio of 0.85. 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. CG's current P/B looks attractive when compared to its industry's average P/B of 1.99. Over the past 12 months, CG's P/B has been as high as 0.99 and as low as 0.77, with a median of 0.86.

Finally, investors should note that CG has a P/CF ratio of 10.05. 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. CG's current P/CF looks attractive when compared to its industry's average P/CF of 15.37. Over the past year, CG's P/CF has been as high as 12.02 and as low as 7.92, with a median of 9.99.

These are only a few of the key metrics included in Carlyle Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CG looks like an impressive value stock at the moment.


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