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Is MasterCraft Boat Holdings, Inc. (MCFT) 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.

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.

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 company value investors might notice is MasterCraft Boat Holdings, Inc. (MCFT - Free Report) . MCFT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also recognize that MCFT has a P/B ratio of 3.61. 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. This stock's P/B looks solid versus its industry's average P/B of 5.24. Over the past year, MCFT's P/B has been as high as 6.76 and as low as 3.20, with a median of 4.86.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MCFT has a P/S ratio of 0.61. This compares to its industry's average P/S of 1.29.

Finally, investors will want to recognize that MCFT has a P/CF ratio of 9.49. 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 28.83. Over the past 52 weeks, MCFT's P/CF has been as high as 13.20 and as low as 6.72, with a median of 8.88.

These are just a handful of the figures considered in MasterCraft Boat Holdings, Inc.'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 MCFT is an impressive value stock right now.


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