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Are Investors Undervaluing Bayerische Motoren Werke (BAMXF) 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.

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 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.

One company to watch right now is Bayerische Motoren Werke (BAMXF). BAMXF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.07, while its industry has an average P/E of 7.82. Over the past 52 weeks, BAMXF's Forward P/E has been as high as 7.48 and as low as 3.09, with a median of 5.81.

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We should also highlight that BAMXF has a P/B ratio of 0.70. The P/B is a method of comparing a stock's market value to 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 1.59. Within the past 52 weeks, BAMXF's P/B has been as high as 0.75 and as low as 0.43, with a median of 0.55.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 0.44. This compares to its industry's average P/S of 0.63.

Finally, investors should note that BAMXF has a P/CF ratio of 3.57. 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. BAMXF's current P/CF looks attractive when compared to its industry's average P/CF of 5.85. Over the past year, BAMXF's P/CF has been as high as 3.83 and as low as 1.57, with a median of 2.

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

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Bayerische Motoren Werke AG (BAMXF) : Free Stock Analysis Report

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