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Should Value Investors Buy Grifols (GRFS) Stock?

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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 company value investors might notice is Grifols (GRFS - Free Report) . GRFS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

Another notable valuation metric for GRFS is its P/B ratio of 0.68. The P/B ratio is used to compare a stock's market value with 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 1.23. Within the past 52 weeks, GRFS's P/B has been as high as 0.84 and as low as 0.46, with a median of 0.66.

Finally, we should also recognize that GRFS has a P/CF ratio of 3.52. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.78. Within the past 12 months, GRFS's P/CF has been as high as 5.12 and as low as 3.52, with a median of 4.84.

These are only a few of the key metrics included in Grifols'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, GRFS looks like an impressive value stock at the moment.


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