Is Eldorado Gold (EGO) a Great Value Stock 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Eldorado Gold (EGO). EGO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also note that EGO holds a PEG ratio of 0.29. 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. EGO's industry has an average PEG of 0.43 right now. EGO's PEG has been as high as 6.38 and as low as 0.29, with a median of 0.42, all within the past year.
Another valuation metric that we should highlight is EGO's P/B ratio of 0.86. 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 attractive against its industry's average P/B of 1.19. Within the past 52 weeks, EGO's P/B has been as high as 0.94 and as low as 0.51, with a median of 0.67.
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. EGO has a P/S ratio of 2.95. This compares to its industry's average P/S of 3.25.
Finally, we should also recognize that EGO has a P/CF ratio of 8.15. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. EGO's current P/CF looks attractive when compared to its industry's average P/CF of 11.18. Within the past 12 months, EGO's P/CF has been as high as 8.96 and as low as 5.28, with a median of 7.02.
These are just a handful of the figures considered in Eldorado Gold'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 EGO is an impressive value stock right now.
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Eldorado Gold Corporation (EGO) : Free Stock Analysis Report
