Yahoo Finance Are Investors Undervaluing Banco Do Brasil (BDORY) Right Now?
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Banco Do Brasil (BDORY). BDORY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 4.02, which compares to its industry's average of 7.72. BDORY's Forward P/E has been as high as 4.57 and as low as 3.39, with a median of 4.03, all within the past year.
We should also highlight that BDORY has a P/B ratio of 0.89. 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 1.53. Within the past 52 weeks, BDORY's P/B has been as high as 1.02 and as low as 0.76, with a median of 0.89.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BDORY has a P/S ratio of 0.51. This compares to its industry's average P/S of 1.13.
Finally, investors should note that BDORY has a P/CF ratio of 4.17. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 12.20. Within the past 12 months, BDORY's P/CF has been as high as 4.94 and as low as 3.54, with a median of 4.19.
These are only a few of the key metrics included in Banco Do Brasil'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, BDORY looks like an impressive value stock at the moment.
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Banco Do Brasil SA (BDORY) : Free Stock Analysis Report
