Yahoo Finance Are Investors Undervaluing BASF (BASFY) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 BASF (BASFY). BASFY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.66, which compares to its industry's average of 12.38. Over the last 12 months, BASFY's Forward P/E has been as high as 12.03 and as low as 7.08, with a median of 10.01.
Investors will also notice that BASFY has a PEG ratio of 0.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BASFY's industry has an average PEG of 1.54 right now. BASFY's PEG has been as high as 0.67 and as low as 0.44, with a median of 0.52, all within the past year.
Another notable valuation metric for BASFY is its P/B ratio of 1. 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 1.90. Over the past year, BASFY's P/B has been as high as 1.23 and as low as 0.70, with a median of 0.93.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BASFY has a P/S ratio of 0.5. This compares to its industry's average P/S of 0.68.
These are only a few of the key metrics included in BASF's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BASFY looks like an impressive value stock at the moment.
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BASF SE (BASFY) : Free Stock Analysis Report
