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Is Bayerische Motoren Werke (BAMXF) Stock Undervalued 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Bayerische Motoren Werke (BAMXF - Free Report) . BAMXF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.47. This compares to its industry's average Forward P/E of 7.73. Over the past 52 weeks, BAMXF's Forward P/E has been as high as 7.48 and as low as 3.09, with a median of 6.08.

Another valuation metric that we should highlight is BAMXF's P/B ratio of 0.71. 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. BAMXF's current P/B looks attractive when compared to its industry's average P/B of 1.73. Over the past 12 months, BAMXF's P/B has been as high as 0.73 and as low as 0.43, with a median of 0.57.

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 0.46. This compares to its industry's average P/S of 0.66.

Finally, our model also underscores that BAMXF has a P/CF ratio of 3.62. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 6.32. BAMXF's P/CF has been as high as 3.71 and as low as 1.57, with a median of 2.07, all within the past year.

These are only a few of the key metrics included in Bayerische Motoren Werke'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, BAMXF looks like an impressive value stock at the moment.


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