Back to top

Image: Bigstock

Is B2Gold Corp (BTG) Stock Undervalued Right Now?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

B2Gold Corp (BTG - Free Report) is a stock many investors are watching right now. BTG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.07, while its industry has an average P/E of 15.66. BTG's Forward P/E has been as high as 12.78 and as low as 8.16, with a median of 10.33, all within the past year.

We should also highlight that BTG has a P/B ratio of 0.93. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.57. Within the past 52 weeks, BTG's P/B has been as high as 1.70 and as low as 0.78, with a median of 0.98.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BTG has a P/S ratio of 1.92. This compares to its industry's average P/S of 3.57.

Finally, our model also underscores that BTG has a P/CF ratio of 10.30. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.82. Over the past year, BTG's P/CF has been as high as 10.75 and as low as 5.04, with a median of 6.04.

If you're looking for another solid Mining - Gold value stock, take a look at Iamgold (IAG - Free Report) . IAG is a # 2 (Buy) stock with a Value score of A.

Iamgold is trading at a forward earnings multiple of 21.58 at the moment, with a PEG ratio of 0.54. This compares to its industry's average P/E of 15.66 and average PEG ratio of 1.10.

Over the last 12 months, IAG's P/E has been as high as 140.56, as low as 14.08, with a median of 21.41, and its PEG ratio has been as high as 11.67, as low as 0.37, with a median of 0.55.

Iamgold also has a P/B ratio of 0.95 compared to its industry's price-to-book ratio of 1.57. Over the past year, its P/B ratio has been as high as 0.95, as low as 0.43, with a median of 0.55.

These are just a handful of the figures considered in B2Gold Corp and Iamgold'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 BTG and IAG is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Iamgold Corporation (IAG) - free report >>

B2Gold Corp (BTG) - free report >>

Published in