Yahoo Finance Are Investors Undervaluing Yamaha Motor Co. (YAMHF) 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.
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.
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.
One company value investors might notice is Yamaha Motor Co. (YAMHF). YAMHF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.70, while its industry has an average P/E of 7.94. Over the past 52 weeks, YAMHF's Forward P/E has been as high as 7.75 and as low as 5.54, with a median of 6.55.
Another valuation metric that we should highlight is YAMHF's P/B ratio of 1.05. The P/B ratio is used to compare a stock's market value with 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 1.61. Over the past 12 months, YAMHF's P/B has been as high as 1.16 and as low as 0.78, with a median of 0.99.
Finally, we should also recognize that YAMHF has a P/CF ratio of 4.63. 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. YAMHF's current P/CF looks attractive when compared to its industry's average P/CF of 5.90. Over the past year, YAMHF's P/CF has been as high as 5.20 and as low as 3.57, with a median of 4.39.
These are just a handful of the figures considered in Yamaha Motor Co.'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 YAMHF is an impressive value stock right now.
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Yamaha Motor Co., Ltd. (YAMHF) : Free Stock Analysis Report
