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Is Lions Gate Entertainment (LGF.A) Stock Undervalued 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.
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.
Lions Gate Entertainment (LGF.A - Free Report) is a stock many investors are watching right now. LGF.A is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.87 right now. For comparison, its industry sports an average P/E of 20.44. Over the past year, LGF.A's Forward P/E has been as high as 19.08 and as low as 7.36, with a median of 11.44.
We also note that LGF.A holds a PEG ratio of 0.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LGF.A's PEG compares to its industry's average PEG of 1.78. Within the past year, LGF.A's PEG has been as high as 3.82 and as low as 0.49, with a median of 0.78.
Another valuation metric that we should highlight is LGF.A's P/B ratio of 0.66. The P/B is a method of comparing a stock's market value to 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 1.27. LGF.A's P/B has been as high as 1 and as low as 0.37, with a median of 0.71, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LGF.A has a P/S ratio of 0.45. This compares to its industry's average P/S of 0.79.
Finally, we should also recognize that LGF.A has a P/CF ratio of 1.02. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 2.04. Over the past year, LGF.A's P/CF has been as high as 2 and as low as 0.63, with a median of 1.24.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Lions Gate Entertainment is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LGF.A feels like a great value stock at the moment.
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Is Lions Gate Entertainment (LGF.A) Stock Undervalued Right Now?
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.
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.
Lions Gate Entertainment (LGF.A - Free Report) is a stock many investors are watching right now. LGF.A is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.87 right now. For comparison, its industry sports an average P/E of 20.44. Over the past year, LGF.A's Forward P/E has been as high as 19.08 and as low as 7.36, with a median of 11.44.
We also note that LGF.A holds a PEG ratio of 0.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LGF.A's PEG compares to its industry's average PEG of 1.78. Within the past year, LGF.A's PEG has been as high as 3.82 and as low as 0.49, with a median of 0.78.
Another valuation metric that we should highlight is LGF.A's P/B ratio of 0.66. The P/B is a method of comparing a stock's market value to 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 1.27. LGF.A's P/B has been as high as 1 and as low as 0.37, with a median of 0.71, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LGF.A has a P/S ratio of 0.45. This compares to its industry's average P/S of 0.79.
Finally, we should also recognize that LGF.A has a P/CF ratio of 1.02. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 2.04. Over the past year, LGF.A's P/CF has been as high as 2 and as low as 0.63, with a median of 1.24.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Lions Gate Entertainment is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LGF.A feels like a great value stock at the moment.