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Are Investors Undervaluing Erste Group (EBKDY) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Erste Group (EBKDY - Free Report) . EBKDY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also note that EBKDY holds a PEG ratio of 0.99. 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. EBKDY's industry has an average PEG of 1.26 right now. Over the last 12 months, EBKDY's PEG has been as high as 1.31 and as low as 0.88, with a median of 1.16.

Investors should also recognize that EBKDY has a P/B ratio of 0.83. The P/B is a method of comparing a stock's market value to 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 1.31. Over the past year, EBKDY's P/B has been as high as 0.98 and as low as 0.63, with a median of 0.81.

Finally, investors should note that EBKDY has a P/CF ratio of 6.99. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.97. Over the past 52 weeks, EBKDY's P/CF has been as high as 9.50 and as low as 5.29, with a median of 7.04.

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


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