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Should Value Investors Buy Greenhill & Co., Inc. (GHL) Stock?

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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 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 company value investors might notice is Greenhill & Co., Inc. . GHL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.25. This compares to its industry's average Forward P/E of 12.80. Over the past 52 weeks, GHL's Forward P/E has been as high as 207.72 and as low as -288.86, with a median of 11.37.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GHL has a P/S ratio of 1.02. This compares to its industry's average P/S of 2.12.

Finally, our model also underscores that GHL has a P/CF ratio of 10.74. 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. GHL's current P/CF looks attractive when compared to its industry's average P/CF of 14.85. Over the past 52 weeks, GHL's P/CF has been as high as 15 and as low as -76.37, with a median of 8.56.

Value investors will likely look at more than just these metrics, but the above data helps show that Greenhill & Co., Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, GHL sticks out at as one of the market's strongest value stocks.

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