Yahoo Finance Are Investors Undervaluing Elekta (EKTAY) 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. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Elekta (EKTAY) is a stock many investors are watching right now. EKTAY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 16.05 right now. For comparison, its industry sports an average P/E of 35.33. EKTAY's Forward P/E has been as high as 52.33 and as low as 15.41, with a median of 22.30, all within the past year.
Another valuation metric that we should highlight is EKTAY's P/B ratio of 2.92. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. EKTAY's current P/B looks attractive when compared to its industry's average P/B of 4.67. Over the past year, EKTAY's P/B has been as high as 3.56 and as low as 2.59, with a median of 3.12.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EKTAY has a P/S ratio of 1.69. This compares to its industry's average P/S of 3.34.
Finally, investors will want to recognize that EKTAY has a P/CF ratio of 11.79. 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. EKTAY's P/CF compares to its industry's average P/CF of 28.51. Over the past 52 weeks, EKTAY's P/CF has been as high as 17.27 and as low as 11.24, with a median of 13.60.
These are only a few of the key metrics included in Elekta'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, EKTAY looks like an impressive value stock at the moment.
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Elekta AB (EKTAY) : Free Stock Analysis Report
