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Are Investors Undervaluing Mercedes-Benz Group AG (MBGAF) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Mercedes-Benz Group AG (MBGAF - Free Report) . MBGAF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 5.14 right now. For comparison, its industry sports an average P/E of 8.74. Over the last 12 months, MBGAF's Forward P/E has been as high as 6.09 and as low as 4.29, with a median of 5.44.

We should also highlight that MBGAF has a P/B ratio of 0.69. 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 stock's P/B looks solid versus its industry's average P/B of 1.38. Within the past 52 weeks, MBGAF's P/B has been as high as 0.95 and as low as 0.63, with a median of 0.82.

Finally, our model also underscores that MBGAF has a P/CF ratio of 2.93. 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 6.91. Over the past year, MBGAF's P/CF has been as high as 3.96 and as low as 2.65, with a median of 3.55.

These are just a handful of the figures considered in Mercedes-Benz Group AG's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MBGAF is an impressive value stock right now.


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