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Is Toyota Motor Corporation (TM) Stock Undervalued Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 company value investors might notice is Toyota Motor Corporation (TM - Free Report) . TM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.09. This compares to its industry's average Forward P/E of 12.64. Over the past 52 weeks, TM's Forward P/E has been as high as 14.94 and as low as 9.22, with a median of 10.85.
Investors should also note that TM holds a PEG ratio of 0.66. 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. TM's industry has an average PEG of 0.73 right now. Over the last 12 months, TM's PEG has been as high as 4.45 and as low as 0.65, with a median of 1.27.
Another valuation metric that we should highlight is TM's P/B ratio of 1.10. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. TM's current P/B looks attractive when compared to its industry's average P/B of 1.21. Within the past 52 weeks, TM's P/B has been as high as 1.14 and as low as 0.89, with a median of 0.96.
Finally, investors will want to recognize that TM has a P/CF ratio of 5.75. 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 6.93. TM's P/CF has been as high as 7.70 and as low as 5.57, with a median of 6.60, all within the past year.
These are just a handful of the figures considered in Toyota Motor Corporation'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 TM is an impressive value stock right now.
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Is Toyota Motor Corporation (TM) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 company value investors might notice is Toyota Motor Corporation (TM - Free Report) . TM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.09. This compares to its industry's average Forward P/E of 12.64. Over the past 52 weeks, TM's Forward P/E has been as high as 14.94 and as low as 9.22, with a median of 10.85.
Investors should also note that TM holds a PEG ratio of 0.66. 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. TM's industry has an average PEG of 0.73 right now. Over the last 12 months, TM's PEG has been as high as 4.45 and as low as 0.65, with a median of 1.27.
Another valuation metric that we should highlight is TM's P/B ratio of 1.10. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. TM's current P/B looks attractive when compared to its industry's average P/B of 1.21. Within the past 52 weeks, TM's P/B has been as high as 1.14 and as low as 0.89, with a median of 0.96.
Finally, investors will want to recognize that TM has a P/CF ratio of 5.75. 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 6.93. TM's P/CF has been as high as 7.70 and as low as 5.57, with a median of 6.60, all within the past year.
These are just a handful of the figures considered in Toyota Motor Corporation'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 TM is an impressive value stock right now.