Are Investors Undervaluing IBEX Limited (IBEX) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is IBEX Limited (IBEX). IBEX is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.13. This compares to its industry's average Forward P/E of 19.65. IBEX's Forward P/E has been as high as 17.93 and as low as 9.38, with a median of 12.42, all within the past year.
Another notable valuation metric for IBEX is its P/B ratio of 3.40. 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 3.83. Within the past 52 weeks, IBEX's P/B has been as high as 4.98 and as low as 2.81, with a median of 3.46.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. IBEX has a P/S ratio of 0.75. This compares to its industry's average P/S of 0.89.
Finally, investors should note that IBEX has a P/CF ratio of 7.39. 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 stock's P/CF looks attractive against its industry's average P/CF of 16.10. Over the past 52 weeks, IBEX's P/CF has been as high as 10.55 and as low as 4.98, with a median of 6.82.
Another great Business - Services stock you could consider is Mitie Group (MITFY), which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, Mitie Group holds a P/B ratio of 3.43 and its industry's price-to-book ratio is 3.83. MITFY's P/B has been as high as 3.73, as low as 1.67, with a median of 2.58 over the past 12 months.
These are only a few of the key metrics included in IBEX Limited and Mitie Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, IBEX and MITFY look like an impressive value stock at the moment.
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IBEX Limited (IBEX) : Free Stock Analysis Report
Mitie Group PLC. (MITFY) : Free Stock Analysis Report
