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Are Investors Undervaluing Vishay Intertechnology (VSH) Right Now?

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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 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 to watch right now is Vishay Intertechnology (VSH - Free Report) . VSH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Another valuation metric that we should highlight is VSH's P/B ratio of 2.38. The P/B ratio pits a stock's market value against 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 2.58. Within the past 52 weeks, VSH's P/B has been as high as 2.38 and as low as 1.39, with a median of 1.66.

Finally, investors will want to recognize that VSH has a P/CF ratio of 12.48. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.48. Over the past 52 weeks, VSH's P/CF has been as high as 12.48 and as low as 6.95, with a median of 9.02.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Vishay Intertechnology is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VSH feels like a great value stock at the moment.


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