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Is Yamaha Motor Co. (YAMHF) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Yamaha Motor Co. (YAMHF). YAMHF 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 7.40, which compares to its industry's average of 7.64. Over the last 12 months, YAMHF's Forward P/E has been as high as 7.75 and as low as 5.54, with a median of 6.20.

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We should also highlight that YAMHF has a P/B ratio of 1.17. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.56. YAMHF's P/B has been as high as 1.22 and as low as 0.78, with a median of 0.91, over the past year.

Finally, investors should note that YAMHF has a P/CF ratio of 4.93. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. YAMHF's P/CF compares to its industry's average P/CF of 5.68. Over the past 52 weeks, YAMHF's P/CF has been as high as 5.20 and as low as 3.57, with a median of 4.17.

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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Zacks Investment Research