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Is Affiliated Managers Group (AMG) Stock Undervalued Right Now?
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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.
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 Affiliated Managers Group (AMG - Free Report) . AMG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.28, while its industry has an average P/E of 16.24. Over the past year, AMG's Forward P/E has been as high as 8.28 and as low as 6.20, with a median of 7.08.
Investors should also note that AMG holds a PEG ratio of 0.50. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AMG's industry has an average PEG of 0.91 right now. AMG's PEG has been as high as 1.01 and as low as 0.46, with a median of 0.57, all within the past year.
Another notable valuation metric for AMG is its P/B ratio of 1.32. 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. This company's current P/B looks solid when compared to its industry's average P/B of 3.45. Within the past 52 weeks, AMG's P/B has been as high as 1.39 and as low as 0.95, with a median of 1.15.
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. AMG has a P/S ratio of 2.61. This compares to its industry's average P/S of 2.85.
Finally, investors should note that AMG has a P/CF ratio of 9.03. 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. AMG's current P/CF looks attractive when compared to its industry's average P/CF of 28. Within the past 12 months, AMG's P/CF has been as high as 9.51 and as low as 4, with a median of 8.53.
These are only a few of the key metrics included in Affiliated Managers Group'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, AMG looks like an impressive value stock at the moment.
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Is Affiliated Managers Group (AMG) Stock Undervalued Right Now?
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.
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 Affiliated Managers Group (AMG - Free Report) . AMG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.28, while its industry has an average P/E of 16.24. Over the past year, AMG's Forward P/E has been as high as 8.28 and as low as 6.20, with a median of 7.08.
Investors should also note that AMG holds a PEG ratio of 0.50. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AMG's industry has an average PEG of 0.91 right now. AMG's PEG has been as high as 1.01 and as low as 0.46, with a median of 0.57, all within the past year.
Another notable valuation metric for AMG is its P/B ratio of 1.32. 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. This company's current P/B looks solid when compared to its industry's average P/B of 3.45. Within the past 52 weeks, AMG's P/B has been as high as 1.39 and as low as 0.95, with a median of 1.15.
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. AMG has a P/S ratio of 2.61. This compares to its industry's average P/S of 2.85.
Finally, investors should note that AMG has a P/CF ratio of 9.03. 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. AMG's current P/CF looks attractive when compared to its industry's average P/CF of 28. Within the past 12 months, AMG's P/CF has been as high as 9.51 and as low as 4, with a median of 8.53.
These are only a few of the key metrics included in Affiliated Managers Group'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, AMG looks like an impressive value stock at the moment.