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Are Investors Undervaluing Donnelley Financial Solutions (DFIN) 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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Donnelley Financial Solutions (DFIN - Free Report) . DFIN is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 17.45, which compares to its industry's average of 24.29. Over the past 52 weeks, DFIN's Forward P/E has been as high as 18.33 and as low as 13.56, with a median of 16.54.

Another notable valuation metric for DFIN is its P/B ratio of 3.38. 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 4.11. DFIN's P/B has been as high as 4.59 and as low as 2.52, with a median of 3.89, over the past year.

Finally, investors should note that DFIN has a P/CF ratio of 9.90. 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. DFIN's current P/CF looks attractive when compared to its industry's average P/CF of 17.44. DFIN's P/CF has been as high as 12.80 and as low as 7.09, with a median of 10.59, all within the past year.

These are just a handful of the figures considered in Donnelley Financial Solutions'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 DFIN is an impressive value stock right now.

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