Should Value Investors Buy Takeda Pharmaceutical Co. (TAK) Stock?

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.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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.One stock to keep an eye on is Takeda Pharmaceutical Co. (TAK). TAK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.Another notable valuation metric for TAK is its P/B ratio of 0.93. 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 1.27. Over the past 12 months, TAK's P/B has been as high as 1.03 and as low as 0.79, with a median of 0.89.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. TAK has a P/S ratio of 1.61. This compares to its industry's average P/S of 2.88.Finally, investors will want to recognize that TAK has a P/CF ratio of 7.25. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. TAK's current P/CF looks attractive when compared to its industry's average P/CF of 8.79. Within the past 12 months, TAK's P/CF has been as high as 7.95 and as low as 5.84, with a median of 6.73.These are only a few of the key metrics included in Takeda Pharmaceutical Co.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TAK looks like an impressive value stock at the moment.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Takeda Pharmaceutical Co. (TAK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks