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Is Banco ntander Brasil (BSBR) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Banco ntander Brasil (BSBR - Free Report) is a stock many investors are watching right now. BSBR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.82, which compares to its industry's average of 8.09. BSBR's Forward P/E has been as high as 11.91 and as low as 7, with a median of 8.31, all within the past year.

We should also highlight that BSBR has a P/B ratio of 0.96. 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. This stock's P/B looks attractive against its industry's average P/B of 1.52. Over the past year, BSBR's P/B has been as high as 1.14 and as low as 0.79, with a median of 0.96.

Finally, we should also recognize that BSBR has a P/CF ratio of 6.25. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BSBR's current P/CF looks attractive when compared to its industry's average P/CF of 12.09. BSBR's P/CF has been as high as 6.48 and as low as 6.25, with a median of 6.30, 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 Banco ntander Brasil is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BSBR feels like a great value stock at the moment.


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