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Is Volkswagen AG (VWAGY) Stock Undervalued Right Now?

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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 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.

One stock to keep an eye on is Volkswagen AG (VWAGY - Free Report) . VWAGY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.49, while its industry has an average P/E of 12.73. 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.

Another notable valuation metric for VWAGY is its P/B ratio of 1.08. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.21. Over the past year, VWAGY's P/B has been as high as 1.44 and as low as 0.54, with a median of 0.75.

Finally, investors will want to recognize that VWAGY has a P/CF ratio of 3.36. 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 stock's P/CF looks attractive against its industry's average P/CF of 6.97. Over the past year, VWAGY's P/CF has been as high as 5.30 and as low as 2.25, with a median of 2.89.

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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