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Is B2Gold Corp (BTG) Stock Undervalued 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is B2Gold Corp (BTG - Free Report) . BTG 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 7.69. This compares to its industry's average Forward P/E of 15.13. Over the past year, BTG's Forward P/E has been as high as 12.69 and as low as 7.18, with a median of 9.50.

BTG is also sporting a PEG ratio of 0.33. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BTG's PEG compares to its industry's average PEG of 0.49. Over the past 52 weeks, BTG's PEG has been as high as 5.29 and as low as 0.31, with a median of 1.25.

Another notable valuation metric for BTG is its P/B ratio of 0.98. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.37. Within the past 52 weeks, BTG's P/B has been as high as 1.09 and as low as 0.78, with a median of 0.95.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BTG has a P/S ratio of 2.04. This compares to its industry's average P/S of 3.23.

Finally, investors should note that BTG has a P/CF ratio of 10.77. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 12.49. Within the past 12 months, BTG's P/CF has been as high as 11.42 and as low as 5.04, with a median of 8.10.

These are only a few of the key metrics included in B2Gold Corp's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BTG looks like an impressive value stock at the moment.


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