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Is UBS (UBS) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 to watch right now is UBS (UBS - Free Report) . UBS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.35, which compares to its industry's average of 9.43. Over the past year, UBS's Forward P/E has been as high as 11.50 and as low as 8.36, with a median of 9.71.

Investors should also recognize that UBS has a P/B ratio of 1.04. 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 1.33. Within the past 52 weeks, UBS's P/B has been as high as 1.07 and as low as 0.84, with a median of 0.97.

Finally, our model also underscores that UBS has a P/CF ratio of 6.56. 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. UBS's current P/CF looks attractive when compared to its industry's average P/CF of 25.15. Over the past year, UBS's P/CF has been as high as 7.04 and as low as 5.42, with a median of 6.42.

These are only a few of the key metrics included in UBS's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, UBS looks like an impressive value stock at the moment.


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