Back to top

Image: Bigstock

Is Liberty Global PLC (LBTYA) Stock Undervalued 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 to watch right now is Liberty Global PLC (LBTYA - Free Report) . LBTYA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also recognize that LBTYA has a P/B ratio of 1.12. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.91. Within the past 52 weeks, LBTYA's P/B has been as high as 1.18 and as low as 0.76, with a median of 1.06.

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. LBTYA has a P/S ratio of 1.22. This compares to its industry's average P/S of 2.43.

Value investors will likely look at more than just these metrics, but the above data helps show that Liberty Global PLC is likely undervalued currently. And when considering the strength of its earnings outlook, LBTYA sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Liberty Global Ltd (LBTYA) - free report >>

Published in