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Wednesday, November 16, 2011

Undervalued Stock Detected (NYSE: GFA)

Shares of GFA fell by 4.12% or $-0.2799/share to $6.52. Gafisa S.A. is trading at a price to book ratio of 0.69. This indicates that the value of the company's underlying assets exceeds today's market price. The PEG is 0.19 suggesting that the shares are trading at an excellent value relative to firm's growth rate. The price to sales ratio came in at 0.7. Hence, the firm is extremely cheap relative to its top line sales figures. On average, 3178310 shares of GFA exchange hands on a given day and today's volume is recorded at 1054291. These financial metrics combined make this company seem undervalued. Value investors may have an eye on this one, especially if the stock gets cheaper.

Gafisa SA is a Brazil-based company engaged in the homebuilding and real estate operations.