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Is B2Gold (BTG) a Great Value Stock 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

B2Gold (BTG - Free Report) is a stock many investors are watching right now. BTG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 15.59 right now. For comparison, its industry sports an average P/E of 26.70. Over the last 12 months, BTG's Forward P/E has been as high as 18.06 and as low as 9.04, with a median of 13.57.

We should also highlight that BTG has a P/B ratio of 2.24. The P/B ratio pits a stock's market value against 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 2.34. Within the past 52 weeks, BTG's P/B has been as high as 2.29 and as low as 1.26, with a median of 1.60.

Finally, investors should note that BTG has a P/CF ratio of 11.83. 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. BTG's current P/CF looks attractive when compared to its industry's average P/CF of 40.88. Over the past year, BTG's P/CF has been as high as 12.11 and as low as 5.24, with a median of 7.41.

These are only a few of the key metrics included in B2Gold'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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