Is Intercorp Financial Services Inc. (IFS) Stock Undervalued Right Now?

IFS

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Intercorp Financial Services Inc. (IFS - Free Report) . IFS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 11.38. This compares to its industry's average Forward P/E of 15.22. Over the past 52 weeks, IFS's Forward P/E has been as high as 13.18 and as low as 8.22, with a median of 11.44.

Another notable valuation metric for IFS is its P/B ratio of 1.56. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.82. IFS's P/B has been as high as 1.57 and as low as 0.96, with a median of 1.28, over the past year.

These are just a handful of the figures considered in Intercorp Financial Services Inc.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that IFS is an impressive value stock right now.

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