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Is Affiliated Managers Group (AMG) a Great Value Stock Right Now?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company value investors might notice is Affiliated Managers Group (AMG - Free Report) . AMG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.75, while its industry has an average P/E of 12.07. Over the past year, AMG's Forward P/E has been as high as 7.75 and as low as 3.27, with a median of 5.76.
Investors should also note that AMG holds a PEG ratio of 0.65. 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. AMG's PEG compares to its industry's average PEG of 1.62. Over the past 52 weeks, AMG's PEG has been as high as 0.65 and as low as 0.27, with a median of 0.50.
Another notable valuation metric for AMG is its P/B ratio of 1.38. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.96. AMG's P/B has been as high as 1.38 and as low as 0.64, with a median of 1.01, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AMG has a P/S ratio of 2.22. This compares to its industry's average P/S of 2.71.
Finally, we should also recognize that AMG has a P/CF ratio of 14.09. 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. AMG's current P/CF looks attractive when compared to its industry's average P/CF of 36.66. Within the past 12 months, AMG's P/CF has been as high as 24.02 and as low as -170.67, with a median of 10.15.
These are just a handful of the figures considered in Affiliated Managers Group'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 AMG is an impressive value stock right now.
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Is Affiliated Managers Group (AMG) a Great Value Stock Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company value investors might notice is Affiliated Managers Group (AMG - Free Report) . AMG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.75, while its industry has an average P/E of 12.07. Over the past year, AMG's Forward P/E has been as high as 7.75 and as low as 3.27, with a median of 5.76.
Investors should also note that AMG holds a PEG ratio of 0.65. 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. AMG's PEG compares to its industry's average PEG of 1.62. Over the past 52 weeks, AMG's PEG has been as high as 0.65 and as low as 0.27, with a median of 0.50.
Another notable valuation metric for AMG is its P/B ratio of 1.38. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.96. AMG's P/B has been as high as 1.38 and as low as 0.64, with a median of 1.01, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AMG has a P/S ratio of 2.22. This compares to its industry's average P/S of 2.71.
Finally, we should also recognize that AMG has a P/CF ratio of 14.09. 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. AMG's current P/CF looks attractive when compared to its industry's average P/CF of 36.66. Within the past 12 months, AMG's P/CF has been as high as 24.02 and as low as -170.67, with a median of 10.15.
These are just a handful of the figures considered in Affiliated Managers Group'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 AMG is an impressive value stock right now.