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Should Value Investors Buy Woori Bank (WF) Stock?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 stock to keep an eye on is Woori Bank (WF - Free Report) . WF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 4.71, which compares to its industry's average of 12.16. Over the past 52 weeks, WF's Forward P/E has been as high as 6.93 and as low as 4.36, with a median of 5.97.

Investors will also notice that WF has a PEG ratio of 1.04. 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. WF's industry currently sports an average PEG of 1.74. Within the past year, WF's PEG has been as high as 1.16 and as low as 0.82, with a median of 1.

Finally, our model also underscores that WF has a P/CF ratio of 4.20. 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. WF's P/CF compares to its industry's average P/CF of 12.47. Over the past year, WF's P/CF has been as high as 8.84 and as low as 3.89, with a median of 5.78.

These are only a few of the key metrics included in Woori Bank's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, WF looks like an impressive value stock at the moment.


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