Yahoo Finance Should Value Investors Buy Bayerische Motoren Werke (BAMXF) Stock?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company value investors might notice is Bayerische Motoren Werke (BAMXF). BAMXF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.04, while its industry has an average P/E of 8.82. Over the past 52 weeks, BAMXF's Forward P/E has been as high as 6.63 and as low as 4.78, with a median of 5.76.
We should also highlight that BAMXF has a P/B ratio of 0.68. 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 stock's P/B looks solid versus its industry's average P/B of 1.07. Within the past 52 weeks, BAMXF's P/B has been as high as 0.75 and as low as 0.55, with a median of 0.66.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. BAMXF has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.63.
Finally, investors should note that BAMXF has a P/CF ratio of 3.37. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.60. Within the past 12 months, BAMXF's P/CF has been as high as 3.80 and as low as 2.72, with a median of 3.29.
These are just a handful of the figures considered in Bayerische Motoren Werke'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 BAMXF is an impressive value stock right now.
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Bayerische Motoren Werke AG (BAMXF) : Free Stock Analysis Report
