Yahoo Finance Should Value Investors Buy Afya (AFYA) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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 Afya (AFYA). AFYA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.40 right now. For comparison, its industry sports an average P/E of 20.27. Over the past year, AFYA's Forward P/E has been as high as 18.02 and as low as 8.59, with a median of 10.98.
Investors should also recognize that AFYA has a P/B ratio of 2. 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. AFYA's current P/B looks attractive when compared to its industry's average P/B of 3.36. Over the past 12 months, AFYA's P/B has been as high as 2.87 and as low as 1.89, with a median of 2.16.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Afya is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AFYA feels like a great value stock at the moment.
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Afya Limited (AFYA) : Free Stock Analysis Report
