Is Elekta (EKTAY) a Great Value Stock Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Elekta (EKTAY). EKTAY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 24.98, which compares to its industry's average of 30.56. Over the past year, EKTAY's Forward P/E has been as high as 52.33 and as low as 18.67, with a median of 23.19.
Investors should also recognize that EKTAY has a P/B ratio of 3.16. 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 3.78. Over the past year, EKTAY's P/B has been as high as 3.56 and as low as 2.51, with a median of 3.10.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EKTAY has a P/S ratio of 1.86. This compares to its industry's average P/S of 2.9.
Finally, investors will want to recognize that EKTAY has a P/CF ratio of 14.56. 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. EKTAY's P/CF compares to its industry's average P/CF of 23.32. Within the past 12 months, EKTAY's P/CF has been as high as 17.26 and as low as 10.94, with a median of 14.57.
These are only a few of the key metrics included in Elekta'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, EKTAY looks like an impressive value stock at the moment.
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Elekta AB (EKTAY) : Free Stock Analysis Report
