We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Franklin Resources (BEN) Stock Undervalued Right Now?
Read MoreHide Full Article
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is Franklin Resources (BEN - Free Report) . BEN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 12, while its industry has an average P/E of 12.83. Over the last 12 months, BEN's Forward P/E has been as high as 12.68 and as low as 6.66, with a median of 10.21.
Investors will also notice that BEN has a PEG ratio of 0.76. 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. BEN's industry currently sports an average PEG of 1.32. Over the past 52 weeks, BEN's PEG has been as high as 1.81 and as low as 0.67, with a median of 1.46.
Investors should also recognize that BEN has a P/B ratio of 1.05. 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 1.84. BEN's P/B has been as high as 1.69 and as low as 0.70, with a median of 1.25, over the past year.
Finally, we should also recognize that BEN has a P/CF ratio of 9.53. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.67. BEN's P/CF has been as high as 11.45 and as low as 5.21, with a median of 9.07, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Franklin Resources is likely undervalued currently. And when considering the strength of its earnings outlook, BEN sticks out at as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Franklin Resources (BEN) Stock Undervalued Right Now?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is Franklin Resources (BEN - Free Report) . BEN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 12, while its industry has an average P/E of 12.83. Over the last 12 months, BEN's Forward P/E has been as high as 12.68 and as low as 6.66, with a median of 10.21.
Investors will also notice that BEN has a PEG ratio of 0.76. 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. BEN's industry currently sports an average PEG of 1.32. Over the past 52 weeks, BEN's PEG has been as high as 1.81 and as low as 0.67, with a median of 1.46.
Investors should also recognize that BEN has a P/B ratio of 1.05. 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 1.84. BEN's P/B has been as high as 1.69 and as low as 0.70, with a median of 1.25, over the past year.
Finally, we should also recognize that BEN has a P/CF ratio of 9.53. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.67. BEN's P/CF has been as high as 11.45 and as low as 5.21, with a median of 9.07, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Franklin Resources is likely undervalued currently. And when considering the strength of its earnings outlook, BEN sticks out at as one of the market's strongest value stocks.