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Are Investors Undervaluing SB Financial Group (SBFG) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

SB Financial Group (SBFG - Free Report) is a stock many investors are watching right now. SBFG is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.09 right now. For comparison, its industry sports an average P/E of 9.66. Over the past 52 weeks, SBFG's Forward P/E has been as high as 13.56 and as low as 8.14, with a median of 9.99.

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 1.14. Over the past 12 months, 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 1.57. This compares to its industry's average P/S of 1.99.

Finally, our model also underscores that SBFG has a P/CF ratio of 8.39. 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. SBFG's current P/CF looks attractive when compared to its industry's average P/CF of 12.90. Over the past year, SBFG's P/CF has been as high as 10.29 and as low as 7.29, with a median of 8.35.

These are just a handful of the figures considered in SB Financial Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SBFG is an impressive value stock right now.


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