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Is Industrial & Commercial Bank of China Ltd. (IDCBY) Stock Undervalued Right Now?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Industrial & Commercial Bank of China Ltd. (IDCBY - Free Report) is a stock many investors are watching right now. IDCBY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 6, while its industry has an average P/E of 10.80. IDCBY's Forward P/E has been as high as 7 and as low as 5.93, with a median of 6.56, all within the past year.
Another notable valuation metric for IDCBY is its P/B ratio of 0.62. The P/B ratio is used to compare a stock's market value with 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 0.97. Within the past 52 weeks, IDCBY's P/B has been as high as 0.63 and as low as 0.45, with a median of 0.56.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. IDCBY has a P/S ratio of 1.44. This compares to its industry's average P/S of 1.63.
Finally, investors will want to recognize that IDCBY has a P/CF ratio of 5.64. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. IDCBY's current P/CF looks attractive when compared to its industry's average P/CF of 13.73. Over the past year, IDCBY's P/CF has been as high as 5.71 and as low as 4.04, with a median of 4.75.
Value investors will likely look at more than just these metrics, but the above data helps show that Industrial & Commercial Bank of China Ltd. Is likely undervalued currently. And when considering the strength of its earnings outlook, IDCBY sticks out at as one of the market's strongest value stocks.