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Is Entravision Communications (EVC) Stock Undervalued Right Now?

Zacks Equity Research

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 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 stock to keep an eye on is Entravision Communications (EVC). EVC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 13.71 right now. For comparison, its industry sports an average P/E of 20.13. Over the last 12 months, EVC's Forward P/E has been as high as 55.55 and as low as 12.82, with a median of 20.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EVC has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.23.

Finally, investors should note that EVC has a P/CF ratio of 8.03. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. EVC's P/CF compares to its industry's average P/CF of 26.11. Over the past 52 weeks, EVC's P/CF has been as high as 14.48 and as low as 2.12, with a median of 8.44.

These are just a handful of the figures considered in Entravision Communications'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 EVC is an impressive value stock right now.


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