Should Value Investors Buy Bayerische Motoren Werke AG Sponsored ADR (BMWYY) Stock?
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.
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.
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 Bayerische Motoren Werke AG Sponsored ADR (BMWYY). BMWYY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.20 right now. For comparison, its industry sports an average P/E of 9.06. Over the past year, BMWYY's Forward P/E has been as high as 6.60 and as low as 5.02, with a median of 5.68.
Another notable valuation metric for BMWYY is its P/B ratio of 0.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. BMWYY's current P/B looks attractive when compared to its industry's average P/B of 1.02. BMWYY's P/B has been as high as 0.76 and as low as 0.55, with a median of 0.66, 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BMWYY has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.62.
Finally, investors will want to recognize that BMWYY has a P/CF ratio of 3.47. 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. BMWYY's current P/CF looks attractive when compared to its industry's average P/CF of 5.33. Within the past 12 months, BMWYY's P/CF has been as high as 3.93 and as low as 2.75, with a median of 3.44.
These are just a handful of the figures considered in Bayerische Motoren Werke AG Sponsored ADR's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BMWYY is an impressive value stock right now.
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Bayerische Motoren Werke AG Sponsored ADR (BMWYY) : Free Stock Analysis Report
