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Is Dave & Buster's Entertainment (PLAY) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Dave & Buster's Entertainment (PLAY - Free Report) . PLAY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 12.44 right now. For comparison, its industry sports an average P/E of 24.95. Over the last 12 months, PLAY's Forward P/E has been as high as 16.31 and as low as 8.46, with a median of 10.50.
Investors should also note that PLAY holds a PEG ratio of 0.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PLAY's PEG compares to its industry's average PEG of 1.80. PLAY's PEG has been as high as 0.81 and as low as 0.56, with a median of 0.71, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. PLAY has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.09.
Finally, we should also recognize that PLAY has a P/CF ratio of 6.87. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PLAY's P/CF compares to its industry's average P/CF of 20.21. Over the past year, PLAY's P/CF has been as high as 7.94 and as low as 4.76, with a median of 6.15.
These are only a few of the key metrics included in Dave & Buster's Entertainment'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, PLAY looks like an impressive value stock at the moment.
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Is Dave & Buster's Entertainment (PLAY) Stock Undervalued Right Now?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Dave & Buster's Entertainment (PLAY - Free Report) . PLAY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 12.44 right now. For comparison, its industry sports an average P/E of 24.95. Over the last 12 months, PLAY's Forward P/E has been as high as 16.31 and as low as 8.46, with a median of 10.50.
Investors should also note that PLAY holds a PEG ratio of 0.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PLAY's PEG compares to its industry's average PEG of 1.80. PLAY's PEG has been as high as 0.81 and as low as 0.56, with a median of 0.71, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. PLAY has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.09.
Finally, we should also recognize that PLAY has a P/CF ratio of 6.87. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PLAY's P/CF compares to its industry's average P/CF of 20.21. Over the past year, PLAY's P/CF has been as high as 7.94 and as low as 4.76, with a median of 6.15.
These are only a few of the key metrics included in Dave & Buster's Entertainment'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, PLAY looks like an impressive value stock at the moment.