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Are Investors Undervaluing Toyota Motor Corporation (TM) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
One company value investors might notice is Toyota Motor Corporation (TM - Free Report) . TM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.05, while its industry has an average P/E of 9.33. Over the past 52 weeks, TM's Forward P/E has been as high as 9.60 and as low as 6.89, with a median of 8.49.
We also note that TM holds a PEG ratio of 0.82. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TM's PEG compares to its industry's average PEG of 0.99. Over the last 12 months, TM's PEG has been as high as 3.30 and as low as 0.73, with a median of 1.01.
We should also highlight that TM has a P/B ratio of 0.81. 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 stock's P/B looks attractive against its industry's average P/B of 0.83. Over the past 12 months, TM's P/B has been as high as 1.07 and as low as 0.79, with a median of 1.01.
Finally, investors should note that TM has a P/CF ratio of 4.16. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.53. Over the past 52 weeks, TM's P/CF has been as high as 6.26 and as low as 4.06, with a median of 5.44.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Toyota Motor Corporation is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TM feels like a great value stock at the moment.
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Are Investors Undervaluing Toyota Motor Corporation (TM) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
One company value investors might notice is Toyota Motor Corporation (TM - Free Report) . TM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.05, while its industry has an average P/E of 9.33. Over the past 52 weeks, TM's Forward P/E has been as high as 9.60 and as low as 6.89, with a median of 8.49.
We also note that TM holds a PEG ratio of 0.82. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TM's PEG compares to its industry's average PEG of 0.99. Over the last 12 months, TM's PEG has been as high as 3.30 and as low as 0.73, with a median of 1.01.
We should also highlight that TM has a P/B ratio of 0.81. 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 stock's P/B looks attractive against its industry's average P/B of 0.83. Over the past 12 months, TM's P/B has been as high as 1.07 and as low as 0.79, with a median of 1.01.
Finally, investors should note that TM has a P/CF ratio of 4.16. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.53. Over the past 52 weeks, TM's P/CF has been as high as 6.26 and as low as 4.06, with a median of 5.44.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Toyota Motor Corporation is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TM feels like a great value stock at the moment.