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Is TriplePoint Venture Growth (TPVG) Stock Undervalued Right Now?

Zacks Equity Research
WF vs. BEN: Which Stock Is the Better Value Option?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One stock to keep an eye on is TriplePoint Venture Growth (TPVG). TPVG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.41, which compares to its industry's average of 10.15. Over the past year, TPVG's Forward P/E has been as high as 9.61 and as low as 7.19, with a median of 8.40.

Investors should also note that TPVG holds a PEG ratio of 2.47. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TPVG's PEG compares to its industry's average PEG of 3.22. Over the past 52 weeks, TPVG's PEG has been as high as 2.67 and as low as 0.77, with a median of 0.88.

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. TPVG has a P/S ratio of 3.9. This compares to its industry's average P/S of 4.7.

These are just a handful of the figures considered in TriplePoint Venture Growth'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 TPVG is an impressive value stock right now.

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TriplePoint Venture Growth BDC Corp. (TPVG) : Free Stock Analysis Report
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