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Is Commerzbank (CRZBY) Stock Undervalued 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Commerzbank (CRZBY - Free Report) . CRZBY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.60. This compares to its industry's average Forward P/E of 8.73. Over the last 12 months, CRZBY's Forward P/E has been as high as 154.43 and as low as 8.24, with a median of 13.93.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CRZBY has a P/S ratio of 0.83. This compares to its industry's average P/S of 1.72.

Finally, investors will want to recognize that CRZBY has a P/CF ratio of 4.01. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CRZBY's current P/CF looks attractive when compared to its industry's average P/CF of 13.14. Over the past year, CRZBY's P/CF has been as high as 4.60 and as low as 2.60, with a median of 3.20.

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


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