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Are Investors Undervaluing Malibu Boats (MBUU) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Malibu Boats (MBUU - Free Report) . MBUU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

MBUU is also sporting a PEG ratio of 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MBUU's industry currently sports an average PEG of 2.19. Within the past year, MBUU's PEG has been as high as 1.22 and as low as 0.62, with a median of 0.83.

Investors should also recognize that MBUU has a P/B ratio of 4.11. 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 stock's P/B looks attractive against its industry's average P/B of 5.21. Over the past 12 months, MBUU's P/B has been as high as 5.84 and as low as 2.50, with a median of 3.83.

Finally, investors will want to recognize that MBUU has a P/CF ratio of 10.57. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 28.70. Within the past 12 months, MBUU's P/CF has been as high as 14.47 and as low as 6.43, with a median of 9.65.

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


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