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Are Investors Undervaluing Vishay Intertechnology (VSH) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Vishay Intertechnology (VSH - Free Report) . VSH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.19, which compares to its industry's average of 16.64. VSH's Forward P/E has been as high as 15.59 and as low as 8, with a median of 12.16, all within the past year.

We also note that VSH holds a PEG ratio of 0.89. 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. VSH's PEG compares to its industry's average PEG of 1.82. Over the last 12 months, VSH's PEG has been as high as 2.67 and as low as 0.55, with a median of 1.20.

Another notable valuation metric for VSH is its P/B ratio of 1.90. 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. This stock's P/B looks attractive against its industry's average P/B of 2. Over the past year, VSH's P/B has been as high as 2.72 and as low as 1.68, with a median of 2.03.

Finally, our model also underscores that VSH has a P/CF ratio of 13.02. 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. VSH's P/CF compares to its industry's average P/CF of 19.33. Over the past 52 weeks, VSH's P/CF has been as high as 23.27 and as low as 11.60, with a median of 17.21.

These are only a few of the key metrics included in Vishay Intertechnology'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, VSH looks like an impressive value stock at the moment.


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