Yahoo Finance Are Investors Undervaluing First Business Financial Services (FBIZ) Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
First Business Financial Services (FBIZ) is a stock many investors are watching right now. FBIZ is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.78 right now. For comparison, its industry sports an average P/E of 10.89. Over the past year, FBIZ's Forward P/E has been as high as 9.33 and as low as 5.93, with a median of 7.23.
Another notable valuation metric for FBIZ is its P/B ratio of 1.12. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.85. FBIZ's P/B has been as high as 1.27 and as low as 0.82, with a median of 1.01, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FBIZ has a P/S ratio of 1.38. This compares to its industry's average P/S of 1.89.
Finally, we should also recognize that FBIZ has a P/CF ratio of 6.80. 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 12.03. Within the past 12 months, FBIZ's P/CF has been as high as 7.46 and as low as 4.42, with a median of 5.83.
Value investors will likely look at more than just these metrics, but the above data helps show that First Business Financial Services is likely undervalued currently. And when considering the strength of its earnings outlook, FBIZ sticks out at as one of the market's strongest value stocks.
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First Business Financial Services, Inc. (FBIZ) : Free Stock Analysis Report
