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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.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is KB Financial (KB - Free Report) . KB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.44. This compares to its industry's average Forward P/E of 9.13. Over the last 12 months, KB's Forward P/E has been as high as 6.44 and as low as 2.86, with a median of 5.17.
We also note that KB holds a PEG ratio of 1.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KB's industry has an average PEG of 1.67 right now. KB's PEG has been as high as 1.31 and as low as 0.58, with a median of 1.05, all within the past year.
Investors should also recognize that KB has a P/B ratio of 0.54. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 0.97. KB's P/B has been as high as 0.54 and as low as 0.26, with a median of 0.40, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KB has a P/S ratio of 1.27. This compares to its industry's average P/S of 1.62.
Finally, we should also recognize that KB has a P/CF ratio of 4.60. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.73. Over the past year, KB's P/CF has been as high as 5.18 and as low as 2.23, with a median of 3.48.
These figures are just a handful of the metrics value investors tend to look at, but they help show that KB Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KB feels like a great value stock at the moment.
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Is KB Financial (KB) Stock Undervalued Right Now?
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.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is KB Financial (KB - Free Report) . KB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.44. This compares to its industry's average Forward P/E of 9.13. Over the last 12 months, KB's Forward P/E has been as high as 6.44 and as low as 2.86, with a median of 5.17.
We also note that KB holds a PEG ratio of 1.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KB's industry has an average PEG of 1.67 right now. KB's PEG has been as high as 1.31 and as low as 0.58, with a median of 1.05, all within the past year.
Investors should also recognize that KB has a P/B ratio of 0.54. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 0.97. KB's P/B has been as high as 0.54 and as low as 0.26, with a median of 0.40, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KB has a P/S ratio of 1.27. This compares to its industry's average P/S of 1.62.
Finally, we should also recognize that KB has a P/CF ratio of 4.60. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.73. Over the past year, KB's P/CF has been as high as 5.18 and as low as 2.23, with a median of 3.48.
These figures are just a handful of the metrics value investors tend to look at, but they help show that KB Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KB feels like a great value stock at the moment.