Yahoo Finance Is Banco Do Brasil (BDORY) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Banco Do Brasil (BDORY). BDORY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 3.56. This compares to its industry's average Forward P/E of 7.85. Over the past 52 weeks, BDORY's Forward P/E has been as high as 5.16 and as low as 1.86, with a median of 3.43.
We also note that BDORY holds a PEG ratio of 0.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BDORY's PEG compares to its industry's average PEG of 0.77. Over the past 52 weeks, BDORY's PEG has been as high as 0.49 and as low as 0.10, with a median of 0.22.
We should also highlight that BDORY has a P/B ratio of 0.80. 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. BDORY's current P/B looks attractive when compared to its industry's average P/B of 1.49. Within the past 52 weeks, BDORY's P/B has been as high as 0.80 and as low as 0.54, with a median of 0.67.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BDORY has a P/S ratio of 0.62. This compares to its industry's average P/S of 1.41.
Finally, investors will want to recognize that BDORY has a P/CF ratio of 4.18. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.85. Within the past 12 months, BDORY's P/CF has been as high as 4.84 and as low as 2.80, with a median of 3.68.
Another great Banks - Foreign stock you could consider is NatWest Group (NWG), which is a # 2 (Buy) stock with a Value Score of A.
NatWest Group is currently trading with a Forward P/E ratio of 5.72 while its PEG ratio sits at 0.32. Both of the company's metrics compare favorably to its industry's average P/E of 7.85 and average PEG ratio of 0.77.
NWG's price-to-earnings ratio has been as high as 9.30 and as low as 4.87, with a median of 6.19, while its PEG ratio has been as high as 0.83 and as low as 0.17, with a median of 0.23, all within the past year.
Additionally, NatWest Group has a P/B ratio of 0.73 while its industry's price-to-book ratio sits at 1.49. For NWG, this valuation metric has been as high as 0.83, as low as 0.49, with a median of 0.67 over the past year.
These are only a few of the key metrics included in Banco Do Brasil and NatWest Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BDORY and NWG look like an impressive value stock at the moment.
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Banco Do Brasil SA (BDORY) : Free Stock Analysis Report
NatWest Group plc (NWG) : Free Stock Analysis Report
