Is Fiverr International (FVRR) Stock Undervalued 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.

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.

Fiverr International (FVRR) is a stock many investors are watching right now. FVRR is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.91, which compares to its industry's average of 25.49. FVRR's Forward P/E has been as high as 13.10 and as low as 7.70, with a median of 9.91, all within the past year.

Investors should also recognize that FVRR has a P/B ratio of 2.16. 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. FVRR's current P/B looks attractive when compared to its industry's average P/B of 5.22. FVRR's P/B has been as high as 4.22 and as low as 1.89, with a median of 2.79, over the past year.

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

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This article originally published on Zacks Investment Research (zacks.com).

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