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Are Investors Undervaluing Britvic (BTVCY) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Britvic (BTVCY - Free Report) . BTVCY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 14.12 right now. For comparison, its industry sports an average P/E of 21.64. Over the past 52 weeks, BTVCY's Forward P/E has been as high as 16.72 and as low as 10.96, with a median of 14.23.

Investors should also recognize that BTVCY has a P/B ratio of 3.88. 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. BTVCY's current P/B looks attractive when compared to its industry's average P/B of 9.66. Over the past year, BTVCY's P/B has been as high as 6.14 and as low as 3.60, with a median of 4.79.

These are just a handful of the figures considered in Britvic'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 BTVCY is an impressive value stock right now.


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