Yahoo Finance Is Mitie Group (MITFY) Stock Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Mitie Group (MITFY). MITFY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.90 right now. For comparison, its industry sports an average P/E of 18.12. Over the last 12 months, MITFY's Forward P/E has been as high as 11.13 and as low as 6.88, with a median of 8.85.
Another valuation metric that we should highlight is MITFY's P/B ratio of 1.64. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. MITFY's current P/B looks attractive when compared to its industry's average P/B of 3.85. Over the past 12 months, MITFY's P/B has been as high as 2.45 and as low as 1.54, with a median of 1.83.
Another great Business - Services stock you could consider is Sodexo (SDXAY), which is a # 1 (Strong Buy) stock with a Value Score of A.
Furthermore, Sodexo holds a P/B ratio of 2.91 and its industry's price-to-book ratio is 3.85. SDXAY's P/B has been as high as 3.79, as low as 2.24, with a median of 2.76 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Mitie Group and Sodexo are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MITFY and SDXAY feels like a great value stock at the moment.
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Mitie Group PLC. (MITFY) : Free Stock Analysis Report
Sodexo S.A. Sponsored ADR (SDXAY) : Free Stock Analysis Report
