Is First Western Financial (MYFW) 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, 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is First Western Financial (MYFW). MYFW is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.84 right now. For comparison, its industry sports an average P/E of 12.59. Over the past year, MYFW's Forward P/E has been as high as 13.55 and as low as 6.15, with a median of 11.09.

Investors should also recognize that MYFW has a P/B ratio of 1.37. The P/B ratio pits a stock's market value against 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 2.06. MYFW's P/B has been as high as 1.51 and as low as 0.93, with a median of 1.28, over the past year.

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. MYFW has a P/S ratio of 2.37. This compares to its industry's average P/S of 2.9.

Finally, our model also underscores that MYFW has a P/CF ratio of 9.81. 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. MYFW's P/CF compares to its industry's average P/CF of 15.16. Within the past 12 months, MYFW's P/CF has been as high as 10.40 and as low as 5.54, with a median of 7.24.

Value investors will likely look at more than just these metrics, but the above data helps show that First Western Financial is likely undervalued currently. And when considering the strength of its earnings outlook, MYFW sticks out at as one of the market's strongest value stocks.

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