Is Bayerische Motoren Werke AG Sponsored ADR (BMWYY) Stock Undervalued Right Now?

BMWYY

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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Bayerische Motoren Werke AG Sponsored ADR (BMWYY - Free Report) is a stock many investors are watching right now. BMWYY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.06, which compares to its industry's average of 7.54. Over the last 12 months, BMWYY's Forward P/E has been as high as 6.28 and as low as 4.12, with a median of 4.77.

Another notable valuation metric for BMWYY is its P/B ratio of 0.63. 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 0.93. Over the past year, BMWYY's P/B has been as high as 0.64 and as low as 0.48, with a median of 0.61.

These are only a few of the key metrics included in Bayerische Motoren Werke AG Sponsored ADR'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, BMWYY looks like an impressive value stock at the moment.

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