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Should Value Investors Buy Bayerische Motoren Werke (BAMXF) Stock?

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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.

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 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 stock to keep an eye on is Bayerische Motoren Werke (BAMXF - Free Report) . BAMXF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.45 right now. For comparison, its industry sports an average P/E of 7.71. Over the past year, BAMXF's Forward P/E has been as high as 7.06 and as low as 3.09, with a median of 5.20.

Another valuation metric that we should highlight is BAMXF's P/B ratio of 0.67. 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. BAMXF's current P/B looks attractive when compared to its industry's average P/B of 0.95. BAMXF's P/B has been as high as 0.69 and as low as 0.43, with a median of 0.51, over the past year.

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. BAMXF has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.52.

Finally, our model also underscores that BAMXF has a P/CF ratio of 2.42. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.08. Within the past 12 months, BAMXF's P/CF has been as high as 2.78 and as low as 1.57, with a median of 1.86.

These are just a handful of the figures considered in Bayerische Motoren Werke'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 BAMXF is an impressive value stock right now.


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