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Are Investors Undervaluing Afya (AFYA) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One company to watch right now is Afya (AFYA - Free Report) . AFYA is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.03, which compares to its industry's average of 15.82. Over the past year, AFYA's Forward P/E has been as high as 12.39 and as low as 7.81, with a median of 9.41.

Investors should also note that AFYA holds a PEG ratio of 0.59. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AFYA's industry currently sports an average PEG of 0.72. Over the last 12 months, AFYA's PEG has been as high as 0.60 and as low as 0.25, with a median of 0.35.

Another notable valuation metric for AFYA is its P/B ratio of 2.27. The P/B ratio is used to compare a stock's market value with 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 3.38. AFYA's P/B has been as high as 2.42 and as low as 1.75, with a median of 2.09, over the past year.

If you're looking for another solid Schools value stock, take a look at American Public Education (APEI - Free Report) . APEI is a Zacks Rank of #2 (Buy) stock with a Value score of A.

Shares of American Public Education currently hold a Forward P/E ratio of 17.26, and its PEG ratio is 1.15. In comparison, its industry sports average P/E and PEG ratios of 15.82 and 0.72.

APEI's price-to-earnings ratio has been as high as 45.90 and as low as 10.64, with a median of 15.77, while its PEG ratio has been as high as 3.06 and as low as 0.71, with a median of 1.05, all within the past year.

American Public Education sports a P/B ratio of 1.95 as well; this compares to its industry's price-to-book ratio of 3.38. In the past 52 weeks, APEI's P/B has been as high as 1.98, as low as 0.87, with a median of 1.43.

These are only a few of the key metrics included in Afya and American Public Education strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, AFYA and APEI look like an impressive value stock at the moment.


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