Are Investors Undervaluing Fiat Chrysler (FCAU) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is Fiat Chrysler (FCAU). FCAU is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that FCAU has a P/B ratio of 0.80. The P/B ratio pits a stock's market value against 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 0.84. Within the past 52 weeks, FCAU's P/B has been as high as 1.03 and as low as 0.39, with a median of 0.80.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FCAU has a P/S ratio of 0.23. This compares to its industry's average P/S of 0.38.
Finally, our model also underscores that FCAU has a P/CF ratio of 4. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.93. FCAU's P/CF has been as high as 4 and as low as 1.08, with a median of 2.27, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Fiat Chrysler is likely undervalued currently. And when considering the strength of its earnings outlook, FCAU sticks out at as one of the market's strongest value stocks.
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Fiat Chrysler Automobiles N.V. (FCAU) : Free Stock Analysis Report
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