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Is EZCORP (EZPW) Stock Undervalued 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.

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.

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.

EZCORP (EZPW - Free Report) is a stock many investors are watching right now. EZPW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Another valuation metric that we should highlight is EZPW's P/B ratio of 0.60. 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. EZPW's current P/B looks attractive when compared to its industry's average P/B of 0.70. EZPW's P/B has been as high as 0.72 and as low as 0.47, with a median of 0.58, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EZPW has a P/S ratio of 0.52. This compares to its industry's average P/S of 1.1.

These figures are just a handful of the metrics value investors tend to look at, but they help show that EZCORP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EZPW feels like a great value stock at the moment.


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