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Is Greenhill & Co., Inc. (GHL) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Greenhill & Co., Inc. is a stock many investors are watching right now. GHL is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 10.32, which compares to its industry's average of 12.73. 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 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. GHL has a P/S ratio of 1.06. This compares to its industry's average P/S of 2.21.

Finally, investors will want to recognize that GHL has a P/CF ratio of 11.17. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. GHL's current P/CF looks attractive when compared to its industry's average P/CF of 14.85. GHL's P/CF has been as high as 12.35 and as low as -76.37, with a median of 8.61, all within the past year.

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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