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Are Investors Undervaluing UBS (UBS) Right Now?

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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, 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 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.

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

We should also highlight that UBS has a P/B ratio of 0.90. The P/B is a method of comparing a stock's market value to 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 1.23. UBS's P/B has been as high as 1.22 and as low as 0.86, with a median of 1.02, over the past year.

Finally, our model also underscores that UBS has a P/CF ratio of 5.08. 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 11.32. Over the past 52 weeks, UBS's P/CF has been as high as 7.95 and as low as 5, with a median of 6.33.

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


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