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Is Bayerische Motoren Werke (BAMXF) 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.
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 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 Bayerische Motoren Werke (BAMXF - Free Report) . BAMXF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 5.14, while its industry has an average P/E of 7.82. BAMXF's Forward P/E has been as high as 7.03 and as low as 4.41, with a median of 5.23, all within the past year.
Another valuation metric that we should highlight is BAMXF's P/B ratio of 0.49. 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. This stock's P/B looks solid versus its industry's average P/B of 0.85. BAMXF's P/B has been as high as 0.76 and as low as 0.42, with a median of 0.51, 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. BAMXF has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.48.
Finally, investors should note that BAMXF has a P/CF ratio of 1.82. 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 4.01. Within the past 12 months, BAMXF's P/CF has been as high as 3.33 and as low as 1.57, with a median of 1.89.
Yamaha Motor Co. (YAMHF - Free Report) may be another strong Automotive - Foreign stock to add to your shortlist. YAMHF is a # 2 (Buy) stock with a Value grade of A.
Furthermore, Yamaha Motor Co. holds a P/B ratio of 0.90 and its industry's price-to-book ratio is 0.85. YAMHF's P/B has been as high as 1.25, as low as 0.78, with a median of 0.91 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Bayerische Motoren Werke and Yamaha Motor Co. are likely undervalued currently. And when considering the strength of its earnings outlook, BAMXF and YAMHF sticks out as one of the market's strongest value stocks.
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Is Bayerische Motoren Werke (BAMXF) Stock Undervalued Right Now?
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 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 Bayerische Motoren Werke (BAMXF - Free Report) . BAMXF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 5.14, while its industry has an average P/E of 7.82. BAMXF's Forward P/E has been as high as 7.03 and as low as 4.41, with a median of 5.23, all within the past year.
Another valuation metric that we should highlight is BAMXF's P/B ratio of 0.49. 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. This stock's P/B looks solid versus its industry's average P/B of 0.85. BAMXF's P/B has been as high as 0.76 and as low as 0.42, with a median of 0.51, 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. BAMXF has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.48.
Finally, investors should note that BAMXF has a P/CF ratio of 1.82. 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 4.01. Within the past 12 months, BAMXF's P/CF has been as high as 3.33 and as low as 1.57, with a median of 1.89.
Yamaha Motor Co. (YAMHF - Free Report) may be another strong Automotive - Foreign stock to add to your shortlist. YAMHF is a # 2 (Buy) stock with a Value grade of A.
Furthermore, Yamaha Motor Co. holds a P/B ratio of 0.90 and its industry's price-to-book ratio is 0.85. YAMHF's P/B has been as high as 1.25, as low as 0.78, with a median of 0.91 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Bayerische Motoren Werke and Yamaha Motor Co. are likely undervalued currently. And when considering the strength of its earnings outlook, BAMXF and YAMHF sticks out as one of the market's strongest value stocks.