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Is Affiliated Managers Group (AMG) Stock Undervalued 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.
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 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 stock to keep an eye on is Affiliated Managers Group (AMG - Free Report) . AMG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.21, which compares to its industry's average of 15.52. Over the last 12 months, AMG's Forward P/E has been as high as 8.28 and as low as 6.20, with a median of 7.01.
AMG is also sporting a PEG ratio of 0.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AMG's PEG compares to its industry's average PEG of 0.86. Within the past year, AMG's PEG has been as high as 1.01 and as low as 0.55, with a median of 0.69.
Another notable valuation metric for AMG is its P/B ratio of 1.16. 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 solid versus its industry's average P/B of 3.20. Over the past year, AMG's P/B has been as high as 1.45 and as low as 0.95, with a median of 1.16.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AMG has a P/S ratio of 2.54. This compares to its industry's average P/S of 2.68.
Finally, our model also underscores that AMG has a P/CF ratio of 8.85. 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. AMG's P/CF compares to its industry's average P/CF of 17.60. Within the past 12 months, AMG's P/CF has been as high as 8.87 and as low as 4, with a median of 4.74.
These are only a few of the key metrics included in Affiliated Managers Group'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, AMG looks like an impressive value stock at the moment.
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Is Affiliated Managers Group (AMG) Stock Undervalued Right Now?
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.
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 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 stock to keep an eye on is Affiliated Managers Group (AMG - Free Report) . AMG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.21, which compares to its industry's average of 15.52. Over the last 12 months, AMG's Forward P/E has been as high as 8.28 and as low as 6.20, with a median of 7.01.
AMG is also sporting a PEG ratio of 0.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AMG's PEG compares to its industry's average PEG of 0.86. Within the past year, AMG's PEG has been as high as 1.01 and as low as 0.55, with a median of 0.69.
Another notable valuation metric for AMG is its P/B ratio of 1.16. 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 solid versus its industry's average P/B of 3.20. Over the past year, AMG's P/B has been as high as 1.45 and as low as 0.95, with a median of 1.16.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AMG has a P/S ratio of 2.54. This compares to its industry's average P/S of 2.68.
Finally, our model also underscores that AMG has a P/CF ratio of 8.85. 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. AMG's P/CF compares to its industry's average P/CF of 17.60. Within the past 12 months, AMG's P/CF has been as high as 8.87 and as low as 4, with a median of 4.74.
These are only a few of the key metrics included in Affiliated Managers Group'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, AMG looks like an impressive value stock at the moment.