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Is SB Financial Group (SBFG) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is SB Financial Group (SBFG - Free Report) . SBFG is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.09. This compares to its industry's average Forward P/E of 9.34. SBFG's Forward P/E has been as high as 13.56 and as low as 8.14, with a median of 9.99, all within the past year.

Investors should also recognize that SBFG has a P/B ratio of 1.03. 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 attractive against its industry's average P/B of 1.09. Over the past year, SBFG's P/B has been as high as 1.26 and as low as 0.85, with a median of 1.01.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SBFG has a P/S ratio of 1.49. This compares to its industry's average P/S of 1.91.

Finally, we should also recognize that SBFG has a P/CF ratio of 8.39. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.34. SBFG's P/CF has been as high as 10.29 and as low as 7.29, with a median of 8.35, all within the past year.

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


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