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Are Investors Undervaluing Koninklijke KPN (KKPNF) Right Now?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 to watch right now is Koninklijke KPN (KKPNF - Free Report) . KKPNF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 16.48, while its industry has an average P/E of 20.64. Over the last 12 months, KKPNF's Forward P/E has been as high as 23.28 and as low as 14.75, with a median of 20.55.

Another valuation metric that we should highlight is KKPNF's P/B ratio of 3.17. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.75. KKPNF's P/B has been as high as 5.01 and as low as 3.12, with a median of 4.43, over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Koninklijke KPN is likely undervalued currently. And when considering the strength of its earnings outlook, KKPNF sticks out at as one of the market's strongest value stocks.


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