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Is Korea Electric Power (KEP) a Great Value Stock 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 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.

Korea Electric Power (KEP - Free Report) is a stock many investors are watching right now. KEP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.47. This compares to its industry's average Forward P/E of 14.80. KEP's Forward P/E has been as high as 11.90 and as low as 6.97, with a median of 8.63, all within the past year.

Investors will also notice that KEP has a PEG ratio of 1.49. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. KEP's industry has an average PEG of 2.30 right now. Over the past 52 weeks, KEP's PEG has been as high as 2.38 and as low as 1.39, with a median of 1.73.

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


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