Yahoo Finance Should Value Investors Buy Fortuna Silver Mines (FSM) Stock?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is Fortuna Silver Mines (FSM). FSM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.18, while its industry has an average P/E of 19.79. FSM's Forward P/E has been as high as 27.89 and as low as 4.18, with a median of 10.54, all within the past year.
Investors should also recognize that FSM has a P/B ratio of 0.72. The P/B ratio is used to compare a stock's market value with 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 1.03. Over the past 12 months, FSM's P/B has been as high as 0.94 and as low as 0.42, with a median of 0.72.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FSM has a P/S ratio of 1.4. This compares to its industry's average P/S of 2.17.
Finally, our model also underscores that FSM has a P/CF ratio of 34.33. 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. FSM's P/CF compares to its industry's average P/CF of 65.94. Within the past 12 months, FSM's P/CF has been as high as 43.55 and as low as 2.96, with a median of 5.07.
These are just a handful of the figures considered in Fortuna Silver Mines's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FSM is an impressive value stock right now.
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Fortuna Silver Mines Inc. (FSM) : Free Stock Analysis Report
