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Are Investors Undervaluing Deutsche Bank (DB) Right Now?
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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, 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Deutsche Bank (DB - Free Report) is a stock many investors are watching right now. DB 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 9.31. This compares to its industry's average Forward P/E of 11.02. Over the last 12 months, DB's Forward P/E has been as high as 9.65 and as low as 5.11, with a median of 7.68.
Investors will also notice that DB has a PEG ratio of 0.39. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DB's industry currently sports an average PEG of 0.72. Within the past year, DB's PEG has been as high as 2.38 and as low as 0.33, with a median of 0.39.
Investors should also recognize that DB has a P/B ratio of 0.82. 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 2.34. Within the past 52 weeks, DB's P/B has been as high as 0.85 and as low as 0.37, with a median of 0.53.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DB has a P/S ratio of 1.08. This compares to its industry's average P/S of 1.9.
Finally, we should also recognize that DB has a P/CF ratio of 7.64. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.43. Over the past 52 weeks, DB's P/CF has been as high as 7.90 and as low as 2.94, with a median of 5.72.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Deutsche Bank is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DB feels like a great value stock at the moment.
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Are Investors Undervaluing Deutsche Bank (DB) Right Now?
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, 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Deutsche Bank (DB - Free Report) is a stock many investors are watching right now. DB 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 9.31. This compares to its industry's average Forward P/E of 11.02. Over the last 12 months, DB's Forward P/E has been as high as 9.65 and as low as 5.11, with a median of 7.68.
Investors will also notice that DB has a PEG ratio of 0.39. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DB's industry currently sports an average PEG of 0.72. Within the past year, DB's PEG has been as high as 2.38 and as low as 0.33, with a median of 0.39.
Investors should also recognize that DB has a P/B ratio of 0.82. 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 2.34. Within the past 52 weeks, DB's P/B has been as high as 0.85 and as low as 0.37, with a median of 0.53.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DB has a P/S ratio of 1.08. This compares to its industry's average P/S of 1.9.
Finally, we should also recognize that DB has a P/CF ratio of 7.64. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.43. Over the past 52 weeks, DB's P/CF has been as high as 7.90 and as low as 2.94, with a median of 5.72.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Deutsche Bank is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DB feels like a great value stock at the moment.