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Is Toyota Motor Corporation (TM) a Great Value Stock 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Toyota Motor Corporation (TM - Free Report) . TM 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 8.78, which compares to its industry's average of 11.05. Over the past 52 weeks, TM's Forward P/E has been as high as 13.25 and as low as 8.41, with a median of 10.58.
Investors will also notice that TM has a PEG ratio of 0.39. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TM's industry currently sports an average PEG of 0.57. TM's PEG has been as high as 3.94 and as low as 0.38, with a median of 0.86, all within the past year.
Another valuation metric that we should highlight is TM's P/B ratio of 1.10. The P/B ratio is used to compare a stock's market value with 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 1.16. 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 0.98.
Finally, investors should note that TM has a P/CF ratio of 5.73. 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 6.59. Within the past 12 months, TM's P/CF has been as high as 7.70 and as low as 5.29, with a median of 6.60.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Toyota Motor Corporation is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TM feels like a great value stock at the moment.
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Is Toyota Motor Corporation (TM) a Great Value Stock Right Now?
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Toyota Motor Corporation (TM - Free Report) . TM 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 8.78, which compares to its industry's average of 11.05. Over the past 52 weeks, TM's Forward P/E has been as high as 13.25 and as low as 8.41, with a median of 10.58.
Investors will also notice that TM has a PEG ratio of 0.39. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TM's industry currently sports an average PEG of 0.57. TM's PEG has been as high as 3.94 and as low as 0.38, with a median of 0.86, all within the past year.
Another valuation metric that we should highlight is TM's P/B ratio of 1.10. The P/B ratio is used to compare a stock's market value with 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 1.16. 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 0.98.
Finally, investors should note that TM has a P/CF ratio of 5.73. 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 6.59. Within the past 12 months, TM's P/CF has been as high as 7.70 and as low as 5.29, with a median of 6.60.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Toyota Motor Corporation is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TM feels like a great value stock at the moment.