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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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.
Bavarian Nordic (BVNRY) is a stock many investors are watching right now. BVNRY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for BVNRY is its P/B ratio of 1.52. 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 4.03. Over the past year, BVNRY's P/B has been as high as 2.17 and as low as 1.09, with a median of 1.35.
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. BVNRY has a P/S ratio of 2.64. This compares to its industry's average P/S of 7.27.
Finally, our model also underscores that BVNRY has a P/CF ratio of 8.58. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.06. Within the past 12 months, BVNRY's P/CF has been as high as 12.22 and as low as 4.51, with a median of 6.41.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Bavarian Nordic is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BVNRY feels like a great value stock at the moment.