Back to top

Image: Bigstock

Should Value Investors Buy Porsche Automobil Holding SE (POAHY) Stock?

Read MoreHide Full Article

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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Porsche Automobil Holding SE (POAHY - Free Report) is a stock many investors are watching right now. POAHY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 3.74 right now. For comparison, its industry sports an average P/E of 8.01. Over the past 52 weeks, POAHY's Forward P/E has been as high as 4.44 and as low as 2.74, with a median of 3.68.

We also note that POAHY holds a PEG ratio of 0.87. 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. POAHY's PEG compares to its industry's average PEG of 1.93. Over the past 52 weeks, POAHY's PEG has been as high as 3.10 and as low as 0.64, with a median of 2.54.

Another valuation metric that we should highlight is POAHY's P/B ratio of 0.36. 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 company's current P/B looks solid when compared to its industry's average P/B of 0.93. Over the past year, POAHY's P/B has been as high as 0.65 and as low as 0.32, with a median of 0.43.

These are only a few of the key metrics included in Porsche Automobil Holding SE'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, POAHY looks like an impressive value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Porsche Automobil Holding SE Unsponsored ADR (POAHY) - free report >>

Published in