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Is Erste Group Bank (EBKDY) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Erste Group Bank (EBKDY - Free Report) . EBKDY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 5.46, while its industry has an average P/E of 8.41. Over the past year, EBKDY's Forward P/E has been as high as 11.33 and as low as 5.31, with a median of 9.33.

Investors should also note that EBKDY holds a PEG ratio of 0.30. 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. EBKDY's industry has an average PEG of 0.49 right now. Over the last 12 months, EBKDY's PEG has been as high as 0.52 and as low as 0.27, with a median of 0.43.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EBKDY has a P/S ratio of 0.99. This compares to its industry's average P/S of 1.22.

Finally, investors will want to recognize that EBKDY has a P/CF ratio of 4.07. 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. This stock's P/CF looks attractive against its industry's average P/CF of 13.11. Over the past 52 weeks, EBKDY's P/CF has been as high as 9.15 and as low as 3.65, with a median of 7.15.

These are just a handful of the figures considered in Erste Group Bank'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 EBKDY is an impressive value stock right now.


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