Are Investors Undervaluing Fairfax Financial (FRFHF) 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.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.Fairfax Financial (FRFHF) is a stock many investors are watching right now. FRFHF is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 9.43, which compares to its industry's average of 27.71. FRFHF's Forward P/E has been as high as 9.73 and as low as 7.59, with a median of 8.59, all within the past year. Investors should also recognize that FRFHF has a P/B ratio of 1.39. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.48. FRFHF's P/B has been as high as 1.51 and as low as 1.02, with a median of 1.20, over the past year.Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. FRFHF has a P/S ratio of 1.32. This compares to its industry's average P/S of 1.34.Finally, investors should note that FRFHF has a P/CF ratio of 7.20. 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 stock's P/CF looks attractive against its industry's average P/CF of 12.30. Over the past year, FRFHF's P/CF has been as high as 8.22 and as low as 5.87, with a median of 6.97.If you're looking for another solid Insurance - Property and Casualty value stock, take a look at Mercury General (MCY). MCY is a Zacks Rank of #1 (Strong Buy) stock with a Value score of A.Furthermore, Mercury General holds a P/B ratio of 2.24 and its industry's price-to-book ratio is 1.48. MCY's P/B has been as high as 2.35, as low as 1.34, with a median of 1.92 over the past 12 months.Value investors will likely look at more than just these metrics, but the above data helps show that Fairfax Financial and Mercury General are likely undervalued currently. And when considering the strength of its earnings outlook, FRFHF and MCY sticks out as one of the market's strongest value stocks.Just Released: Zacks Top 10 Stocks for 2026Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. 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 Fairfax Financial Holdings Ltd. (FRFHF): Free Stock Analysis Report Mercury General Corporation (MCY): 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