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Is Deutsche Post AG (DPSGY) 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.

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.

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 Deutsche Post AG . DPSGY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 14.94, which compares to its industry's average of 40.23. Over the past 52 weeks, DPSGY's Forward P/E has been as high as 16.79 and as low as 7.99, with a median of 14.67.

Investors will also notice that DPSGY has a PEG ratio of 1.57. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DPSGY's industry has an average PEG of 3.42 right now. DPSGY's PEG has been as high as 1.93 and as low as 0.92, with a median of 1.56, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DPSGY has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.17.

Finally, investors should note that DPSGY has a P/CF ratio of 8.55. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DPSGY's current P/CF looks attractive when compared to its industry's average P/CF of 20.68. Within the past 12 months, DPSGY's P/CF has been as high as 8.66 and as low as 3.60, with a median of 7.83.

These are only a few of the key metrics included in Deutsche Post AG'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, DPSGY looks like an impressive value stock at the moment.

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