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Is First Financial Ban (FFBC) Stock Undervalued 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

First Financial Ban (FFBC - Free Report) is a stock many investors are watching right now. FFBC 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 8.72. This compares to its industry's average Forward P/E of 9.90. Over the past year, FFBC's Forward P/E has been as high as 12.20 and as low as 7.99, with a median of 9.35.

Another notable valuation metric for FFBC is its P/B ratio of 0.99. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.82. FFBC's P/B has been as high as 1.18 and as low as 0.84, with a median of 0.98, over the past year.

Finally, our model also underscores that FFBC has a P/CF ratio of 9.43. 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. FFBC's current P/CF looks attractive when compared to its industry's average P/CF of 18.39. Over the past 52 weeks, FFBC's P/CF has been as high as 11.32 and as low as 8.07, with a median of 9.21.

Value investors will likely look at more than just these metrics, but the above data helps show that First Financial Ban is likely undervalued currently. And when considering the strength of its earnings outlook, FFBC sticks out as one of the market's strongest value stocks.

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