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Is UBS (UBS) a Great Value Stock 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 value investors might notice is UBS (UBS - Free Report) . UBS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.25. This compares to its industry's average Forward P/E of 9.39. UBS's Forward P/E has been as high as 11.50 and as low as 8.36, with a median of 9.56, all within the past year.

Another notable valuation metric for UBS is its P/B ratio of 1.02. 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 stock's P/B looks solid versus its industry's average P/B of 1.32. Over the past 12 months, UBS's P/B has been as high as 1.07 and as low as 0.86, with a median of 0.98.

Finally, our model also underscores that UBS has a P/CF ratio of 6.48. 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. UBS's P/CF compares to its industry's average P/CF of 24.95. Within the past 12 months, UBS's P/CF has been as high as 6.89 and as low as 5.42, with a median of 6.40.

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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