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Are Investors Undervaluing Deutsche Bank (DB) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Deutsche Bank (DB - Free Report) is a stock many investors are watching right now. DB 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 4.86. This compares to its industry's average Forward P/E of 7.05. Over the past year, DB's Forward P/E has been as high as 9.70 and as low as 4.29, with a median of 7.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DB has a P/S ratio of 0.47. This compares to its industry's average P/S of 1.11.

If you're looking for another solid Banks - Foreign value stock, take a look at UBS (UBS - Free Report) . UBS is a # 2 (Buy) stock with a Value score of A.

Shares of UBS are currently trading at a forward earnings multiple of 7.31 and a PEG ratio of 1.91 compared to its industry's P/E and PEG ratios of 7.05 and 0.42, respectively.

UBS's price-to-earnings ratio has been as high as 10.21 and as low as 6.75, with a median of 8.34, while its PEG ratio has been as high as 2.28 and as low as 0.38, with a median of 0.83, all within the past year.

Furthermore, UBS holds a P/B ratio of 0.91 and its industry's price-to-book ratio is 1.27. UBS's P/B has been as high as 1.22, as low as 0.86, with a median of 1.02 over the past 12 months.

These are just a handful of the figures considered in Deutsche Bank and UBS'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 DB and UBS is an impressive value stock right now.


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