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Is Bayerische Motoren Werke AG Sponsored ADR (BMWYY) Stock Undervalued 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.

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 value investors might notice is Bayerische Motoren Werke AG Sponsored ADR (BMWYY - Free Report) . BMWYY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.28, while its industry has an average P/E of 7.05. Over the last 12 months, BMWYY's Forward P/E has been as high as 5.60 and as low as 4.23, with a median of 4.66.

Investors should also recognize that BMWYY has a P/B ratio of 0.62. 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. This stock's P/B looks attractive against its industry's average P/B of 0.83. Over the past 12 months, BMWYY's P/B has been as high as 0.64 and as low as 0.48, with a median of 0.61.

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. BMWYY has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.45.

Value investors will likely look at more than just these metrics, but the above data helps show that Bayerische Motoren Werke AG Sponsored ADR is likely undervalued currently. And when considering the strength of its earnings outlook, BMWYY sticks out at as one of the market's strongest value stocks.


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