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Is Bayerische Motoren Werke (BAMXF) Stock Undervalued 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.

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.

One stock to keep an eye on is Bayerische Motoren Werke (BAMXF - Free Report) . BAMXF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 6.85, which compares to its industry's average of 7.90. Over the past year, BAMXF's Forward P/E has been as high as 7.01 and as low as 3.09, with a median of 5.20.

Another valuation metric that we should highlight is BAMXF's P/B ratio of 0.65. 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. BAMXF's current P/B looks attractive when compared to its industry's average P/B of 0.96. Within the past 52 weeks, BAMXF's P/B has been as high as 0.73 and as low as 0.43, with a median of 0.51.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BAMXF has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.5.

Finally, investors should note that BAMXF has a P/CF ratio of 2.35. 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 5.15. BAMXF's P/CF has been as high as 3.18 and as low as 1.57, with a median of 1.86, all within the past year.

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


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