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Is Daimler AG (DDAIF) Stock Undervalued 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Daimler AG . DDAIF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.89, which compares to its industry's average of 13.12. Over the last 12 months, DDAIF's Forward P/E has been as high as 22.98 and as low as 6.14, with a median of 8.58.

Investors will also notice that DDAIF has a PEG ratio of 0.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DDAIF's industry has an average PEG of 1.02 right now. DDAIF's PEG has been as high as 2.41 and as low as 0.40, with a median of 1.10, all within the past year.

We should also highlight that DDAIF has a P/B ratio of 1.25. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.36. Over the past year, DDAIF's P/B has been as high as 1.33 and as low as 0.59, with a median of 1.04.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DDAIF has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.58.

Finally, our model also underscores that DDAIF has a P/CF ratio of 5.13. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.42. Over the past year, DDAIF's P/CF has been as high as 7.64 and as low as 4.47, with a median of 5.78.

These are just a handful of the figures considered in Daimler 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 DDAIF is an impressive value stock right now.

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