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Is Vishay Intertechnology (VSH) a Great Value Stock 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Vishay Intertechnology (VSH - Free Report) is a stock many investors are watching right now. VSH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.90. This compares to its industry's average Forward P/E of 18.41. Over the past 52 weeks, VSH's Forward P/E has been as high as 15.59 and as low as 7.61, with a median of 11.74.

Investors should also note that VSH holds a PEG ratio of 0.97. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. VSH's industry currently sports an average PEG of 2.01. Over the past 52 weeks, VSH's PEG has been as high as 2.67 and as low as 0.55, with a median of 1.20.

We should also highlight that VSH has a P/B ratio of 1.92. 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. VSH's current P/B looks attractive when compared to its industry's average P/B of 2.09. Over the past year, VSH's P/B has been as high as 2.72 and as low as 1.68, with a median of 2.01.

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. VSH has a P/S ratio of 0.95. This compares to its industry's average P/S of 2.39.

Finally, we should also recognize that VSH has a P/CF ratio of 12.50. 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 19.49. VSH's P/CF has been as high as 23.27 and as low as 10.95, with a median of 17.21, all within the past year.

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


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