Are Investors Undervaluing KDDI Corporation Unsponsored ADR (KDDIY) Right Now?

KDDIY

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

KDDI Corporation Unsponsored ADR (KDDIY - Free Report) is a stock many investors are watching right now. KDDIY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.72, which compares to its industry's average of 10.46. Over the past year, KDDIY's Forward P/E has been as high as 11.85 and as low as 9.08, with a median of 10.96.

Another valuation metric that we should highlight is KDDIY's P/B ratio of 1.36. 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 2.35. Over the past 12 months, KDDIY's P/B has been as high as 1.67 and as low as 1.20, with a median of 1.55.

Finally, we should also recognize that KDDIY has a P/CF ratio of 5.15. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. KDDIY's P/CF compares to its industry's average P/CF of 6.75. Over the past 52 weeks, KDDIY's P/CF has been as high as 5.91 and as low as 4.56, with a median of 5.42.

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

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