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Is MS&AD Insurance Group (MSADY) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 to watch right now is MS&AD Insurance Group (MSADY). MSADY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

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Another valuation metric that we should highlight is MSADY's P/B ratio of 1.18. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.50. Over the past 12 months, MSADY's P/B has been as high as 1.30 and as low as 0.70, with a median of 0.80.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MSADY has a P/S ratio of 0.72. This compares to its industry's average P/S of 1.11.

Value investors will likely look at more than just these metrics, but the above data helps show that MS&AD Insurance Group is likely undervalued currently. And when considering the strength of its earnings outlook, MSADY sticks out at as one of the market's strongest value stocks.

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MS&AD Insurance Group Holdings Inc. (MSADY) : Free Stock Analysis Report

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Zacks Investment Research