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Are Investors Undervaluing Bitauto Holdngs (BITA) Right Now?

By Zacks Investment ResearchStock MarketsMar 26, 2020 11:50PM ET
www.investing.com/analysis/are-investors-undervaluing-bitauto-holdngs-bita-right-now-200519731
Are Investors Undervaluing Bitauto Holdngs (BITA) Right Now?
By Zacks Investment Research   |  Mar 26, 2020 11:50PM ET
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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.

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 value investors might notice is Bitauto Holdngs (BITA). BITA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BITA has a P/S ratio of 0.5. This compares to its industry's average P/S of 0.7.

Finally, investors should note that BITA has a P/CF ratio of 21.71. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 27.54. Over the past year, BITA's P/CF has been as high as 29.52 and as low as 12.79, with a median of 22.46.

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



Bitauto Holdings Limited (BITA): Free Stock Analysis Report

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Are Investors Undervaluing Bitauto Holdngs (BITA) Right Now?
 

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Are Investors Undervaluing Bitauto Holdngs (BITA) Right Now?

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