Is Evercore (EVR) Stock Undervalued 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.

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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Evercore (EVR) is a stock many investors are watching right now. EVR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.44, which compares to its industry's average of 11.92. EVR's Forward P/E has been as high as 12.51 and as low as 6.55, with a median of 8.92, all within the past year.

Another valuation metric that we should highlight is EVR's P/B ratio of 2.30. The P/B ratio pits a stock's market value against 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 2.53. Over the past year, EVR's P/B has been as high as 4.21 and as low as 2.21, with a median of 2.72.

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. EVR has a P/S ratio of 1.05. This compares to its industry's average P/S of 1.88.

Finally, our model also underscores that EVR has a P/CF ratio of 4.97. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. EVR's P/CF compares to its industry's average P/CF of 15.52. Over the past 52 weeks, EVR's P/CF has been as high as 10.63 and as low as 4.78, with a median of 6.30.

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

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