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Are Investors Undervaluing Voestalpine AG (VLPNY) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 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.

Voestalpine AG (VLPNY - Free Report) is a stock many investors are watching right now. VLPNY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.55, which compares to its industry's average of 15.54. Over the last 12 months, VLPNY's Forward P/E has been as high as 12.67 and as low as 8.19, with a median of 10.63.

We should also highlight that VLPNY has a P/B ratio of 1.13. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. VLPNY's current P/B looks attractive when compared to its industry's average P/B of 1.99. Over the past year, VLPNY's P/B has been as high as 1.58 and as low as 1.07, with a median of 1.30.

Finally, we should also recognize that VLPNY has a P/CF ratio of 8.98. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.59. Over the past year, VLPNY's P/CF has been as high as 14.58 and as low as 8.48, with a median of 12.70.

These are only a few of the key metrics included in Voestalpine AG's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, VLPNY looks like an impressive value stock at the moment.


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