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Is Five9 (FIVN) 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, 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.

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 Five9 (FIVN - Free Report) . FIVN is currently sporting a Zacks Rank #2 (Buy) and an A for Value.

Investors should also note that FIVN holds a PEG ratio of 0.65. 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. FIVN's PEG compares to its industry's average PEG of 0.91. Over the last 12 months, FIVN's PEG has been as high as 1.10 and as low as 0.47, with a median of 0.66.

We should also highlight that FIVN has a P/B ratio of 2.85. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. FIVN's current P/B looks attractive when compared to its industry's average P/B of 4.84. FIVN's P/B has been as high as 5.74 and as low as 2.47, with a median of 3.59, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FIVN has a P/S ratio of 1.45. This compares to its industry's average P/S of 2.85.

Finally, investors should note that FIVN has a P/CF ratio of 12.96. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.11. Over the past 52 weeks, FIVN's P/CF has been as high as 40.41 and as low as 11.77, with a median of 19.85.

These are just a handful of the figures considered in Five9'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 FIVN is an impressive value stock right now.

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