Is Volkswagen AG (VWAGY) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Neverthe...
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Volkswagen AG (VWAGY). VWAGY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.85 right now. For comparison, its industry sports an average P/E of 11.19. VWAGY's Forward P/E has been as high as 14.65 and as low as 7.11, with a median of 8.96, all within the past year.
Another valuation metric that we should highlight is VWAGY's P/B ratio of 0.95. 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 1.18. Within the past 52 weeks, VWAGY's P/B has been as high as 1.44 and as low as 0.54, with a median of 0.95.
Finally, investors should note that VWAGY has a P/CF ratio of 3.05. 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 6.70. VWAGY's P/CF has been as high as 5.30 and as low as 2.25, with a median of 3.12, all within the past year.
These are only a few of the key metrics included in Volkswagen AG's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, VWAGY looks like an impressive value stock at the moment.
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Volkswagen AG (VWAGY): Free Stock Analysis Report
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