Is BioNTech (BNTX) Stock Undervalued Right Now?

LGND BNTX

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.

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.

BioNTech (BNTX - Free Report) is a stock many investors are watching right now. BNTX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Another valuation metric that we should highlight is BNTX's P/B ratio of 2.23. 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 stock's P/B looks solid versus its industry's average P/B of 3.58. Over the past year, BNTX's P/B has been as high as 6.89 and as low as 1.55, with a median of 2.19.

Finally, we should also recognize that BNTX has a P/CF ratio of 3.55. 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. BNTX's P/CF compares to its industry's average P/CF of 8.55. Over the past 52 weeks, BNTX's P/CF has been as high as 8.44 and as low as 2.12, with a median of 2.92.

If you're looking for another solid Medical - Biomedical and Genetics value stock, take a look at Ligand Pharmaceuticals (LGND - Free Report) . LGND is a # 2 (Buy) stock with a Value score of A.

Ligand Pharmaceuticals is trading at a forward earnings multiple of 18.83 at the moment, with a PEG ratio of 0.75. This compares to its industry's average P/E of 94.81 and average PEG ratio of 5.38.

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