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Is Tata Motors (TTM) a Great Value Stock Right Now?

Zacks Equity Research
Caterpillar (CAT) closed at $133.71 in the latest trading session, marking a -0.49% move from the prior day.

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Tata Motors (TTM) is a stock many investors are watching right now. TTM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors should also recognize that TTM has a P/B ratio of 0.61. The P/B is a method of comparing a stock's market value to 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 0.70. TTM's P/B has been as high as 1.11 and as low as 0.53, with a median of 0.64, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TTM has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.33.

Value investors will likely look at more than just these metrics, but the above data helps show that Tata Motors is likely undervalued currently. And when considering the strength of its earnings outlook, TTM sticks out at as one of the market's strongest value stocks.


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