Yahoo Finance Is Phibro Animal Health (PAHC) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 Phibro Animal Health (PAHC). PAHC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.62, which compares to its industry's average of 20.61. Over the past 52 weeks, PAHC's Forward P/E has been as high as 15.10 and as low as 8.01, with a median of 10.43.
Another notable valuation metric for PAHC is its P/B ratio of 2.67. The P/B ratio pits a stock's market value against 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 6.85. PAHC's P/B has been as high as 2.78 and as low as 1.42, with a median of 1.89, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PAHC has a P/S ratio of 0.72. This compares to its industry's average P/S of 1.54.
Finally, investors should note that PAHC has a P/CF ratio of 14.49. 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 33.48. Over the past 52 weeks, PAHC's P/CF has been as high as 15.11 and as low as 6.93, with a median of 8.97.
Value investors will likely look at more than just these metrics, but the above data helps show that Phibro Animal Health is likely undervalued currently. And when considering the strength of its earnings outlook, PAHC sticks out at as one of the market's strongest value stocks.
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Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report
