Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?

One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put Public Joint-Stock Company Mobile TeleSystems stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:

PE Ratio

A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.

On this front, Mobile TeleSystems has a trailing twelve months PE ratio of 15.48, as you can see in the chart below:



This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 20.30. While Mobile TeleSystems’ current PE level puts it above its midpoint of 9.11 over the past five years, the current multiple stands slightly below the highs for the stock.



Further, the stock’s PE also compares favorably with the Zacks classified Computer & Technology sector’s trailing twelve months PE ratio, which stands at 21.86. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
 


We should also point out that Mobile TeleSystems has a forward PE ratio (price relative to this year’s earnings) of just 10.52, so it is fair to say that a slightly more value-oriented path may be ahead for Mobile TeleSystems stock in the near term too.

P/S Ratio

Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.

Right now, Mobile TeleSystems has a P/S ratio of about 1.62, which is quite lower than the S&P 500 average that comes in at 3.08 right now. This makes the stock undervalued from the P/S aspect too.



Broad Value Outlook

In aggregate, Mobile TeleSystems currently has a Zacks Value Style Score of ‘A’, putting it into the top 20% of all stocks we cover from this look. This makes Mobile TeleSystems a solid choice for value investors.

What About the Stock Overall?

Though Mobile TeleSystems might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of ‘B’ and a Momentum score of ‘A’. This gives MBT a Zacks VGM score—or its overarching fundamental grade—of ‘A’. (You can read more about the Zacks Style Scores here >>)

Meanwhile, the company’s recent earnings estimates have been trending up lately. The full year consensus estimate has increased 3.5% in the last 30 days, while that for the next year has increased 4.1% in the same time frame. You can see the consensus estimate trend and recent price action for the stock in the chart below:

The stock holds a Zacks Rank #3 (Hold), which indicates expectations of an in-line performance from the company in the near term. However, Mobile TeleSystems is enjoying bullish analyst sentiment, and this works in the company’s favor.

Bottom Line

Mobile TeleSystems is an inspired choice for value investors, given its impressive lineup of statistics on this front. Despite a Zacks Rank #3, the company boasts a solid industry rank (Top 20% out of over 250 industries), indicating that the broader factors are favorable for the company.

Though the Zacks classified Wireless Non – U.S. industry has underperformed the broader market in the last two years, the industry has been gathering momentum since the beginning of 2017, hinting at revival prospects. In fact, in the last one month, the Zacks classified Wireless Non – U.S. industry has outperformed the broader market, which is reflected in the chart below:



Hence, we believe that bullish analyst sentiment and favorable industry factors make Mobile TeleSystems a strong value contender.

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