Yahoo Finance Are Investors Undervaluing SB Financial Group (SBFG) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is SB Financial Group (SBFG). SBFG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is SBFG's P/B ratio of 0.98. 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 1.30. Within the past 52 weeks, SBFG's P/B has been as high as 1.08 and as low as 0.93, with a median of 1.01.
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. SBFG has a P/S ratio of 1.75. This compares to its industry's average P/S of 2.34.
Finally, investors will want to recognize that SBFG has a P/CF ratio of 6.15. 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. SBFG's P/CF compares to its industry's average P/CF of 10.92. Over the past year, SBFG's P/CF has been as high as 6.75 and as low as 5.03, with a median of 6.39.
Value investors will likely look at more than just these metrics, but the above data helps show that SB Financial Group is likely undervalued currently. And when considering the strength of its earnings outlook, SBFG sticks out at as one of the market's strongest value stocks.
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SB Financial Group, Inc. (SBFG) : Free Stock Analysis Report
