We should all admit that it's about time the stock market took a breather. Valuations have gotten out of hand. The Shiller cyclically adjusted price-to-earnings (CAPE) ratio rose to the highest point since 2000. And you probably know what happened with stocks shortly afterward back then.

However, not every stock is absurdly expensive. Some are even downright bargains. Here's my top value stock to buy right now.

Fingers holding a wood block with a "V" on it over four other stacked blocks with "A", "L", "U', and "E" on them.

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Exceptionally cheap

The S&P 500 index currently trades at 19.5 times expected earnings. Viatris (VTRS -1.51%) sports a forward earnings multiple of (drumroll, please)... 3.86. That's right: Shares of the generic-drug maker are roughly one-fifth as expensive as the S&P 500 based on the widely used valuation metric.

How does Viatris compare to other pharmaceutical stocks? To be sure, pharma stocks are more attractively valued as a group than the broader market with an average forward price-to-earnings ratio of 12.1. However, Viatris still looks inexpensive versus its peers.

But you don't have to limit yourself to earnings multiples to see what a bargain Viatris is right now. The company trades at only 0.84 of its book value. Viatris' price-to-sales multiple is 0.95. For anyone who prefers metrics that use enterprise value (EV), the stock's EV is only 2.35 times trailing-12-month revenue.

No matter how you look at it, Viatris is exceptionally cheap. The obvious question that arises, though, is, "Why?" 

Value or value trap?

Shares of Viatris plunged nearly 28% last year while the overall market soared. Some investors might have been concerned that the company posted a hefty net loss through the first three quarters of 2021. However, that loss was based on generally accepted accounting principles (GAAP). The GAAP figure includes amortization charges related to the merger of Mylan with Pfizer's Upjohn unit to form Viatris.

On an adjusted basis, Viatris' earnings grew last year. The company even consistently beat consensus Wall Street adjusted earnings estimates.

The main problem for Viatris came in February 2021 with revenue guidance that fell well short of expectations. But does this make the stock a value trap? Not at all. Viatris views 2021 as a "trough year." 

I think Viatris is correct to put 2021 into context. The company's pipeline includes multiple biosimilars and complex products that should be significant growth drivers over the next few years. For example, Viatris' biosimilar to the world's top-selling drug, Humira, will launch in the U.S. in 2023.  

Solid and steady

No, Viatris isn't the most exciting stock you'll find. Pfizer spun off its Upjohn unit to merge with Mylan mainly to get rid of the basket of older drugs with slow growth or declining sales out of its lineup.

However, Viatris is a solid and steady company. It continues to develop new biosimilars and generics that will more than offset the sales erosion for older products. I expect Viatris will be able to consistently deliver modest revenue growth over the long term.

Don't forget the company's dividend, either. Viatris' dividend yield currently stands at 3.2%. Look for dividend increases in the future.

Investors seem to be recognizing what a bargain Viatris stock is. Its shares have jumped more than 10% year to date while the overall stock market has fallen. The average Wall Street price target for the stock reflects an upside potential of more than 30%. This dirt cheap stock might not remain so cheap for too much longer.