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Are Investors Undervaluing Unilever PLC (UL) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.

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.

Unilever PLC (UL - Free Report) is a stock many investors are watching right now. UL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 20.91. This compares to its industry's average Forward P/E of 21.80. UL's Forward P/E has been as high as 21.52 and as low as 18.18, with a median of 19.59, all within the past year.

Investors should also recognize that UL has a P/B ratio of 4.99. 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 5.20. Over the past year, UL's P/B has been as high as 4.99 and as low as 4.05, with a median of 4.56.

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


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