Yahoo Finance Is Associated British Foods (ASBFY) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Associated British Foods (ASBFY). ASBFY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 13.72. This compares to its industry's average Forward P/E of 18.24. Over the last 12 months, ASBFY's Forward P/E has been as high as 15.72 and as low as 9.30, with a median of 12.89.
Investors should also note that ASBFY holds a PEG ratio of 2.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ASBFY's industry currently sports an average PEG of 2.09. ASBFY's PEG has been as high as 4.24 and as low as 0.66, with a median of 0.99, all within the past year.
Another notable valuation metric for ASBFY is its P/B ratio of 1.27. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. ASBFY's current P/B looks attractive when compared to its industry's average P/B of 2.48. Over the past 12 months, ASBFY's P/B has been as high as 1.37 and as low as 0.75, with a median of 1.12.
Investors could also keep in mind Danone (DANOY), an Food - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Danone is currently trading with a Forward P/E ratio of 17.17 while its PEG ratio sits at 3.01. Both of the company's metrics compare favorably to its industry's average P/E of 18.24 and average PEG ratio of 2.09.
Over the past year, DANOY's P/E has been as high as 17.40, as low as 12.71, with a median of 14.91; its PEG ratio has been as high as 4.99, as low as 2.20, with a median of 0.99 during the same time period.
Furthermore, Danone holds a P/B ratio of 2.38 and its industry's price-to-book ratio is 2.48. DANOY's P/B has been as high as 2.38, as low as 1.57, with a median of 1.87 over the past 12 months.
These are only a few of the key metrics included in Associated British Foods and Danone strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ASBFY and DANOY look like an impressive value stock at the moment.
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Associated British Foods PLC (ASBFY) : Free Stock Analysis Report
Danone (DANOY) : Free Stock Analysis Report
