Back to top

Image: Bigstock

Is KT (KT) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One company value investors might notice is KT (KT - Free Report) . KT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.85. This compares to its industry's average Forward P/E of 7.04. Over the past year, KT's Forward P/E has been as high as 7.52 and as low as 5.36, with a median of 6.32.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. KT has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.76.

Finally, investors should note that KT has a P/CF ratio of 1.73. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 3.96. Over the past year, KT's P/CF has been as high as 2.19 and as low as 1.33, with a median of 1.56.

Investors could also keep in mind TIM (TIMB - Free Report) , an Wireless Non-US stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

TIM is trading at a forward earnings multiple of 17.12 at the moment, with a PEG ratio of 1.54. This compares to its industry's average P/E of 7.04 and average PEG ratio of 0.61.

Over the last 12 months, TIMB's P/E has been as high as 23.28, as low as 14.93, with a median of 18.76, and its PEG ratio has been as high as 1.79, as low as 0.99, with a median of 1.16.

Additionally, TIM has a P/B ratio of 1.25 while its industry's price-to-book ratio sits at 2. For TIMB, this valuation metric has been as high as 1.50, as low as 1.01, with a median of 1.18 over the past year.

These are just a handful of the figures considered in KT and TIM's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that KT and TIMB is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


KT Corporation (KT) - free report >>

TIM S.A. Sponsored ADR (TIMB) - free report >>

Published in