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Are Investors Undervaluing Bayerische Motoren Werke AG Sponsored ADR (BMWYY) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.

One company to watch right now is Bayerische Motoren Werke AG Sponsored ADR (BMWYY - Free Report) . BMWYY 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 4.90. This compares to its industry's average Forward P/E of 8.16. BMWYY's Forward P/E has been as high as 5.21 and as low as 4.23, with a median of 4.61, all within the past year.

We should also highlight that BMWYY has a P/B ratio of 0.57. 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 0.87. Over the past 12 months, BMWYY's P/B has been as high as 0.57 and as low as 0.48, with a median of 0.53.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BMWYY has a P/S ratio of 0.36. This compares to its industry's average P/S of 0.5.

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


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