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Are Investors Undervaluing Takeda Pharmaceutical Co. (TAK) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Takeda Pharmaceutical Co. (TAK - Free Report) . TAK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors should also note that TAK holds a PEG ratio of 7.49. 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. TAK's PEG compares to its industry's average PEG of 10.84. Within the past year, TAK's PEG has been as high as 9.20 and as low as 3.08, with a median of 5.91.
Another valuation metric that we should highlight is TAK's P/B ratio of 1.03. 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 1.34. Over the past year, TAK's P/B has been as high as 1.17 and as low as 0.87, with a median of 0.99.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TAK has a P/S ratio of 1.59. This compares to its industry's average P/S of 3.2.
Finally, we should also recognize that TAK has a P/CF ratio of 7.44. 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. TAK's current P/CF looks attractive when compared to its industry's average P/CF of 10.60. Over the past 52 weeks, TAK's P/CF has been as high as 8.14 and as low as 6.47, with a median of 6.97.
These are only a few of the key metrics included in Takeda Pharmaceutical Co.'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, TAK looks like an impressive value stock at the moment.
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Are Investors Undervaluing Takeda Pharmaceutical Co. (TAK) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Takeda Pharmaceutical Co. (TAK - Free Report) . TAK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors should also note that TAK holds a PEG ratio of 7.49. 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. TAK's PEG compares to its industry's average PEG of 10.84. Within the past year, TAK's PEG has been as high as 9.20 and as low as 3.08, with a median of 5.91.
Another valuation metric that we should highlight is TAK's P/B ratio of 1.03. 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 1.34. Over the past year, TAK's P/B has been as high as 1.17 and as low as 0.87, with a median of 0.99.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TAK has a P/S ratio of 1.59. This compares to its industry's average P/S of 3.2.
Finally, we should also recognize that TAK has a P/CF ratio of 7.44. 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. TAK's current P/CF looks attractive when compared to its industry's average P/CF of 10.60. Over the past 52 weeks, TAK's P/CF has been as high as 8.14 and as low as 6.47, with a median of 6.97.
These are only a few of the key metrics included in Takeda Pharmaceutical Co.'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, TAK looks like an impressive value stock at the moment.