Are Investors Undervaluing Victory Capital Holdings (VCTR) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Victory Capital Holdings (VCTR). VCTR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.87. This compares to its industry's average Forward P/E of 14.92. Over the past year, VCTR's Forward P/E has been as high as 7.65 and as low as 5.89, with a median of 6.72.
VCTR is also sporting a PEG ratio of 0.77. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. VCTR's PEG compares to its industry's average PEG of 1.04. Over the past 52 weeks, VCTR's PEG has been as high as 1.20 and as low as 0.76, with a median of 0.92.
Another notable valuation metric for VCTR is its P/B ratio of 2.12. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.01. Over the past year, VCTR's P/B has been as high as 2.17 and as low as 1.77, with a median of 2.03.
Finally, we should also recognize that VCTR has a P/CF ratio of 9.16. 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. VCTR's P/CF compares to its industry's average P/CF of 28.02. VCTR's P/CF has been as high as 9.34 and as low as 6.38, with a median of 8.17, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Victory Capital Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, VCTR sticks out at as one of the market's strongest value stocks.
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Victory Capital Holdings, Inc. (VCTR) : Free Stock Analysis Report
