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Is PLDT (PHI) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One company value investors might notice is PLDT (PHI - Free Report) . PHI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

PHI is also sporting a PEG ratio of 0.88. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PHI's industry has an average PEG of 1.15 right now.

Finally, investors will want to recognize that PHI has a P/CF ratio of 4.34. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PHI's P/CF compares to its industry's average P/CF of 6.59. Over the past year, PHI's P/CF has been as high as 4.82 and as low as 3.32, with a median of 4.11.

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


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