Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks in various market conditions, utilizing established valuation metrics to uncover potential opportunities [2][3]. Company Summary: Ultrapar Participacoes (UGP) - Ultrapar Participacoes (UGP) is currently rated as a Zacks Rank 1 (Strong Buy) and has a Value grade of A, indicating strong potential for value investors [4]. - UGP's P/E ratio stands at 11.56, significantly lower than the industry average of 18.32, suggesting it may be undervalued [4]. - The stock's Forward P/E has fluctuated between 6.92 and 12.93 over the past 52 weeks, with a median of 10.05 [4]. - UGP's PEG ratio is 2.13, which is lower than the industry average of 2.53, indicating a favorable valuation relative to expected earnings growth [5]. - The stock's PEG has ranged from 1.74 to 3.38 in the past year, with a median of 2.47 [5]. - UGP has a P/B ratio of 1.34, which is attractive compared to the industry average of 2.40, suggesting solid valuation against its book value [6]. - The P/B ratio has varied between 0.97 and 1.61 over the past year, with a median of 1.19 [6]. - UGP's P/CF ratio is 5.03, significantly lower than the industry's average of 11.41, indicating strong cash flow relative to its valuation [7]. - The P/CF ratio has been between 3.46 and 5.45 in the past 52 weeks, with a median of 4.37 [7]. - Overall, these metrics suggest that UGP is likely undervalued, supported by a strong earnings outlook, making it an impressive value stock at present [8].
Is Ultrapar Participacoes (UGP) a Great Value Stock Right Now?