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Should Value Investors Buy SK Telecom Co. (SKM) Stock?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is SK Telecom Co. (SKM - Free Report) . SKM is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

Investors should also recognize that SKM has a P/B ratio of 1.10. The P/B ratio pits a stock's market value against 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 1.46. Within the past 52 weeks, SKM's P/B has been as high as 1.25 and as low as 0.86, with a median of 1.04.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SKM has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.32.

If you're looking for another solid Wireless Non-US value stock, take a look at Turkcell Iletisim Hizmetleri (TKC - Free Report) . TKC is a # 2 (Buy) stock with a Value score of A.

Turkcell Iletisim Hizmetleri is currently trading with a Forward P/E ratio of 5.66 while its PEG ratio sits at 0.27. Both of the company's metrics compare favorably to its industry's average P/E of 6.93 and average PEG ratio of 1.13.

Turkcell Iletisim Hizmetleri also has a P/B ratio of 3.14 compared to its industry's price-to-book ratio of 1.46. Over the past year, its P/B ratio has been as high as 3.35, as low as 1.11, with a median of 1.72.

These figures are just a handful of the metrics value investors tend to look at, but they help show that SK Telecom Co. and Turkcell Iletisim Hizmetleri are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SKM and TKC feels like a great value stock at the moment.


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