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Is Volkswagen AG (VWAGY) 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice 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 9.24, which compares to its industry's average of 11.35. VWAGY's Forward P/E has been as high as 14.65 and as low as 7.11, with a median of 9.11, all within the past year.

Investors should also recognize that VWAGY has a P/B ratio of 1.07. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. VWAGY's current P/B looks attractive when compared to its industry's average P/B of 1.19. VWAGY's P/B has been as high as 1.44 and as low as 0.50, with a median of 0.67, over the past year.

Finally, we should also recognize that VWAGY has a P/CF ratio of 3.62. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.29. Over the past 52 weeks, VWAGY's P/CF has been as high as 5.30 and as low as 1.83, with a median of 2.64.

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.


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