Is the Morrison Supermarkets share price (LON:MRW) undervalued at 208.5p?

Morrison Supermarkets (LON:MRW) is a large cap in the Food & Drug Retailing industry. Alongside its supermarket operations, Morrison also has food manufacturing capabilities in meat, fish, bakery, fruit and veg, deli and flowers.

Right now the Morrison Supermarkets share price appears to represent solid value, as shown in the group's Value Rank of 62. Let's explore this in more detail.

Digging into Morrison Supermarkets' Value Rank

Looking at Morrison Supermarkets's StockReport, we can see that the group has a:

• Rolling price to book value of 1.08,
• Trailing twelve month price to earnings ratio of 18.8
• Trailing twelve month price to free cashflow of 19.7
• Rolling dividend yield of 3.93%
• Trailing twelve-month price to sales ratio of 0.28

This combination of financial traits suggests that, while Morrison Supermarkets stock is not the cheapest, it is far from expensive at these levels and is worth considering - especially if it is exposed to other positive stock market factors as well.

What does this mean for potential investors?

Some of the best quality stocks in the market have defensible models that can deliver high levels of shareholder returns over the long term. But there are no guarantees and it's important to do your own research. Indeed, we've identified some areas of concern with Wm Morrison Supermarkets P L C that you can find out about here.