Should Value Investors Buy Afya (AFYA) Stock?

AFYA

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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Afya (AFYA - Free Report) is a stock many investors are watching right now. AFYA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.77. This compares to its industry's average Forward P/E of 24.23. Over the last 12 months, AFYA's Forward P/E has been as high as 16.34 and as low as 7.34, with a median of 11.64.

Another notable valuation metric for AFYA is its P/B ratio of 2.08. 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 2.42. Over the past year, AFYA's P/B has been as high as 2.63 and as low as 1.32, with a median of 2.12.

These are only a few of the key metrics included in Afya'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, AFYA looks like an impressive value stock at the moment.

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