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Are Investors Undervaluing Galp Energia (GLPEY) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

One company value investors might notice is Galp Energia (GLPEY - Free Report) . GLPEY is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

Another valuation metric that we should highlight is GLPEY's P/B ratio of 2.21. The P/B ratio pits a stock's market value against 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 2.77. Over the past 12 months, GLPEY's P/B has been as high as 2.49 and as low as 1.66, with a median of 2.17.

Finally, our model also underscores that GLPEY has a P/CF ratio of 6.50. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.59. Within the past 12 months, GLPEY's P/CF has been as high as 7.00 and as low as 5.03, with a median of 6.27.

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

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