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Should Value Investors Buy Bayerische Motoren Werke (BAMXF) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Bayerische Motoren Werke (BAMXF - Free Report) . BAMXF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 5.87. This compares to its industry's average Forward P/E of 9.17. BAMXF's Forward P/E has been as high as 6.63 and as low as 4.78, with a median of 5.76, all within the past year.
We should also highlight that BAMXF has a P/B ratio of 0.66. 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 1.03. Over the past 12 months, BAMXF's P/B has been as high as 0.75 and as low as 0.55, with a median of 0.66.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BAMXF has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.62.
Finally, investors should note that BAMXF has a P/CF ratio of 3.27. 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 stock's P/CF looks attractive against its industry's average P/CF of 5.39. Over the past year, BAMXF's P/CF has been as high as 3.80 and as low as 2.72, with a median of 3.28.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Bayerische Motoren Werke is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BAMXF feels like a great value stock at the moment.
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Should Value Investors Buy Bayerische Motoren Werke (BAMXF) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Bayerische Motoren Werke (BAMXF - Free Report) . BAMXF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 5.87. This compares to its industry's average Forward P/E of 9.17. BAMXF's Forward P/E has been as high as 6.63 and as low as 4.78, with a median of 5.76, all within the past year.
We should also highlight that BAMXF has a P/B ratio of 0.66. 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 1.03. Over the past 12 months, BAMXF's P/B has been as high as 0.75 and as low as 0.55, with a median of 0.66.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BAMXF has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.62.
Finally, investors should note that BAMXF has a P/CF ratio of 3.27. 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 stock's P/CF looks attractive against its industry's average P/CF of 5.39. Over the past year, BAMXF's P/CF has been as high as 3.80 and as low as 2.72, with a median of 3.28.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Bayerische Motoren Werke is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BAMXF feels like a great value stock at the moment.