Back to top

Image: Bigstock

Is Townsquare Media (TSQ) Stock Undervalued Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Townsquare Media (TSQ - Free Report) is a stock many investors are watching right now. TSQ is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

Another notable valuation metric for TSQ is its P/B ratio of 2.32. 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. TSQ's current P/B looks attractive when compared to its industry's average P/B of 3.40. Over the past year, TSQ's P/B has been as high as 6.91 and as low as 2.25, with a median of 3.98.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TSQ has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.57.

Finally, we should also recognize that TSQ has a P/CF ratio of 3.54. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.10. Over the past 52 weeks, TSQ's P/CF has been as high as 7.11 and as low as 1.46, with a median of 3.94.

These are just a handful of the figures considered in Townsquare Media's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TSQ is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Townsquare Media, Inc. (TSQ) - free report >>

Published in