Is Piper Sandler Companies (PIPR) Stock Undervalued Right Now?

PIPR

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

One company value investors might notice is Piper Sandler Companies (PIPR - Free Report) . PIPR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We should also highlight that PIPR has a P/B ratio of 1.98. The P/B ratio pits a stock's market value against 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 2.56. Over the past year, PIPR's P/B has been as high as 2.26 and as low as 1.53, with a median of 1.92.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PIPR has a P/S ratio of 1.71. This compares to its industry's average P/S of 1.72.

Finally, we should also recognize that PIPR has a P/CF ratio of 15.54. 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. PIPR's P/CF compares to its industry's average P/CF of 16.25. Over the past year, PIPR's P/CF has been as high as 17.82 and as low as 6.01, with a median of 8.06.

These are just a handful of the figures considered in Piper Sandler Companies's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PIPR is an impressive value stock right now.

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