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Are Investors Undervaluing Deutsche Post AG (DPSGY) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.

Deutsche Post AG is a stock many investors are watching right now. DPSGY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 15.41, while its industry has an average P/E of 45.41. Over the past year, DPSGY's Forward P/E has been as high as 16.79 and as low as 7.99, with a median of 14.61.

Investors will also notice that DPSGY has a PEG ratio of 1.50. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DPSGY's industry has an average PEG of 3.86 right now. Over the last 12 months, DPSGY's PEG has been as high as 1.93 and as low as 1.34, with a median of 1.72.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DPSGY has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.1.

Finally, we should also recognize that DPSGY has a P/CF ratio of 8.83. 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. DPSGY's P/CF compares to its industry's average P/CF of 20.68. Within the past 12 months, DPSGY's P/CF has been as high as 8.93 and as low as 3.60, with a median of 7.45.

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

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