Yahoo Finance Is Mercedes-Benz Group AG (MBGAF) 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Mercedes-Benz Group AG (MBGAF) is a stock many investors are watching right now. MBGAF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.75, while its industry has an average P/E of 7.23. Over the past 52 weeks, MBGAF's Forward P/E has been as high as 6.46 and as low as 3.90, with a median of 5.06.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MBGAF has a P/S ratio of 0.5. This compares to its industry's average P/S of 0.51.
Finally, we should also recognize that MBGAF has a P/CF ratio of 2.57. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.93. Over the past year, MBGAF's P/CF has been as high as 2.63 and as low as 1.67, with a median of 2.12.
These are only a few of the key metrics included in Mercedes-Benz Group AG's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MBGAF looks like an impressive value stock at the moment.
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Mercedes-Benz Group AG (MBGAF) : Free Stock Analysis Report
