Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 of #2 (Buy), as well as a Value grade of A.

Another notable valuation metric for FRFHF is its P/B ratio of 1.12. 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. FRFHF's current P/B looks attractive when compared to its industry's average P/B of 1.60. Within the past 52 weeks, FRFHF's P/B has been as high as 1.14 and as low as 0.81, with a median of 1.01.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FRFHF has a P/S ratio of 1. This compares to its industry's average P/S of 1.22.

Finally, investors should note that FRFHF has a P/CF ratio of 6.10. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.66. Within the past 12 months, FRFHF's P/CF has been as high as 6.16 and as low as 3.16, with a median of 5.46.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Fairfax Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FRFHF feels like a great value stock at the moment.