We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Volkswagen AG (VWAGY) a Great Value Stock Right Now?
Read MoreHide Full Article
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Volkswagen AG (VWAGY - Free Report) . VWAGY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.91, which compares to its industry's average of 18.49. VWAGY's Forward P/E has been as high as 12.25 and as low as 3.53, with a median of 8.32, all within the past year.
Investors will also notice that VWAGY has a PEG ratio of 0.81. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. VWAGY's industry has an average PEG of 1.19 right now. Over the past 52 weeks, VWAGY's PEG has been as high as 1.29 and as low as 0.69, with a median of 1.10.
Investors should also recognize that VWAGY has a P/B ratio of 0.75. 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 stock's P/B looks attractive against its industry's average P/B of 0.84. Over the past year, VWAGY's P/B has been as high as 0.75 and as low as 0.39, with a median of 0.62.
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. VWAGY has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.46.
Finally, investors will want to recognize that VWAGY has a P/CF ratio of 3.10. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. VWAGY's P/CF compares to its industry's average P/CF of 4.93. VWAGY's P/CF has been as high as 3.10 and as low as 1.27, with a median of 2.41, all within the past year.
These are just a handful of the figures considered in Volkswagen AG'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 VWAGY is an impressive value stock right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Volkswagen AG (VWAGY) a Great Value Stock 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Volkswagen AG (VWAGY - Free Report) . VWAGY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.91, which compares to its industry's average of 18.49. VWAGY's Forward P/E has been as high as 12.25 and as low as 3.53, with a median of 8.32, all within the past year.
Investors will also notice that VWAGY has a PEG ratio of 0.81. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. VWAGY's industry has an average PEG of 1.19 right now. Over the past 52 weeks, VWAGY's PEG has been as high as 1.29 and as low as 0.69, with a median of 1.10.
Investors should also recognize that VWAGY has a P/B ratio of 0.75. 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 stock's P/B looks attractive against its industry's average P/B of 0.84. Over the past year, VWAGY's P/B has been as high as 0.75 and as low as 0.39, with a median of 0.62.
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. VWAGY has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.46.
Finally, investors will want to recognize that VWAGY has a P/CF ratio of 3.10. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. VWAGY's P/CF compares to its industry's average P/CF of 4.93. VWAGY's P/CF has been as high as 3.10 and as low as 1.27, with a median of 2.41, all within the past year.
These are just a handful of the figures considered in Volkswagen AG'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 VWAGY is an impressive value stock right now.