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Are Investors Undervaluing AFC Gamma (AFCG) 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, 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 stock to keep an eye on is AFC Gamma (AFCG - Free Report) . AFCG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 4.98 right now. For comparison, its industry sports an average P/E of 8.59. AFCG's Forward P/E has been as high as 6.53 and as low as 4.15, with a median of 5.53, all within the past year.

Another valuation metric that we should highlight is AFCG's P/B ratio of 0.67. The P/B ratio is used to compare a stock's market value with 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 0.93. Over the past year, AFCG's P/B has been as high as 0.84 and as low as 0.55, with a median of 0.74.

Finally, we should also recognize that AFCG has a P/CF ratio of 12.88. 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 28.87. AFCG's P/CF has been as high as 21.54 and as low as 6.28, with a median of 11.50, all within the past year.

These are only a few of the key metrics included in AFC Gamma'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, AFCG looks like an impressive value stock at the moment.


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