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Is Grifols (GRFS) Stock Undervalued Right Now?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Grifols (GRFS - Free Report) . GRFS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Another notable valuation metric for GRFS is its P/B ratio of 0.65. 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 stock's P/B looks solid versus its industry's average P/B of 1.34. GRFS's P/B has been as high as 0.75 and as low as 0.48, with a median of 0.59, over the past year.

Finally, we should also recognize that GRFS has a P/CF ratio of 9.93. 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. GRFS's current P/CF looks attractive when compared to its industry's average P/CF of 10.45. Over the past 52 weeks, GRFS's P/CF has been as high as 13.04 and as low as 7.56, with a median of 10.55.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Grifols is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GRFS feels like a great value stock at the moment.


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