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Are Investors Undervaluing Yamaha Motor Co. (YAMHF) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Yamaha Motor Co. (YAMHF - Free Report) . YAMHF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 6.55 right now. For comparison, its industry sports an average P/E of 7.43. Over the past year, YAMHF's Forward P/E has been as high as 7.51 and as low as 5.18, with a median of 6.12.

Finally, investors will want to recognize that YAMHF has a P/CF ratio of 4.83. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.91. Within the past 12 months, YAMHF's P/CF has been as high as 5.20 and as low as 3.48, with a median of 4.12.

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


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