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Is B2Gold (BTG) Stock Undervalued Right Now?

Zacks Equity Research

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

B2Gold (BTG) is a stock many investors are watching right now. 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 10.70. This compares to its industry's average Forward P/E of 24.90. Over the past year, BTG's Forward P/E has been as high as 17.43 and as low as 6.41, with a median of 10.63.

Finally, investors should note that BTG has a P/CF ratio of 8.97. 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 9.76. BTG's P/CF has been as high as 11.62 and as low as 5.04, with a median of 9.07, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that B2Gold is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BTG feels like a great value stock at the moment.

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