Yahoo Finance Is Bayerische Motoren Werke AG Sponsored ADR (BMWYY) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Bayerische Motoren Werke AG Sponsored ADR (BMWYY) is a stock many investors are watching right now. BMWYY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 5.36 right now. For comparison, its industry sports an average P/E of 7.90. Over the past 52 weeks, BMWYY's Forward P/E has been as high as 6.39 and as low as 5.02, with a median of 5.58.
We should also highlight that BMWYY has a P/B ratio of 0.55. The P/B ratio pits a stock's market value against 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 0.97. Over the past 12 months, BMWYY's P/B has been as high as 0.75 and as low as 0.54, with a median of 0.64.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BMWYY has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.67.
Finally, our model also underscores that BMWYY has a P/CF ratio of 2.77. 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. BMWYY's P/CF compares to its industry's average P/CF of 4.55. BMWYY's P/CF has been as high as 3.76 and as low as 2.69, with a median of 3.20, all within the past year.
These are just a handful of the figures considered in Bayerische Motoren Werke AG Sponsored ADR'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 BMWYY is an impressive value stock right now.
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Bayerische Motoren Werke AG Sponsored ADR (BMWYY) : Free Stock Analysis Report
