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Are Investors Undervaluing BASF (BASFY) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 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 value investors might notice is BASF (BASFY - Free Report) . BASFY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.59. This compares to its industry's average Forward P/E of 15.55. BASFY's Forward P/E has been as high as 16.32 and as low as 10.27, with a median of 11.99, all within the past year.
Investors will also notice that BASFY has a PEG ratio of 0.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BASFY's industry has an average PEG of 0.99 right now. Over the past 52 weeks, BASFY's PEG has been as high as 1.13 and as low as 0.87, with a median of 0.99.
Investors should also recognize that BASFY has a P/B ratio of 1.04. 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. BASFY's current P/B looks attractive when compared to its industry's average P/B of 2.05. BASFY's P/B has been as high as 1.32 and as low as 0.88, with a median of 1.09, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BASFY has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.9.
Finally, we should also recognize that BASFY has a P/CF ratio of 7.95. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.51. Over the past 52 weeks, BASFY's P/CF has been as high as 35.40 and as low as 7.44, with a median of 10.99.
Value investors will likely look at more than just these metrics, but the above data helps show that BASF is likely undervalued currently. And when considering the strength of its earnings outlook, BASFY sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing BASF (BASFY) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 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 value investors might notice is BASF (BASFY - Free Report) . BASFY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.59. This compares to its industry's average Forward P/E of 15.55. BASFY's Forward P/E has been as high as 16.32 and as low as 10.27, with a median of 11.99, all within the past year.
Investors will also notice that BASFY has a PEG ratio of 0.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BASFY's industry has an average PEG of 0.99 right now. Over the past 52 weeks, BASFY's PEG has been as high as 1.13 and as low as 0.87, with a median of 0.99.
Investors should also recognize that BASFY has a P/B ratio of 1.04. 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. BASFY's current P/B looks attractive when compared to its industry's average P/B of 2.05. BASFY's P/B has been as high as 1.32 and as low as 0.88, with a median of 1.09, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BASFY has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.9.
Finally, we should also recognize that BASFY has a P/CF ratio of 7.95. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.51. Over the past 52 weeks, BASFY's P/CF has been as high as 35.40 and as low as 7.44, with a median of 10.99.
Value investors will likely look at more than just these metrics, but the above data helps show that BASF is likely undervalued currently. And when considering the strength of its earnings outlook, BASFY sticks out at as one of the market's strongest value stocks.