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Are Investors Undervaluing KT (KT) Right Now?

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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.

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.

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 KT (KT - Free Report) . KT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Another notable valuation metric for KT is its P/B ratio of 0.48. 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. KT's current P/B looks attractive when compared to its industry's average P/B of 1.26. Over the past 12 months, KT's P/B has been as high as 0.59 and as low as 0.39, with a median of 0.43.

Finally, we should also recognize that KT has a P/CF ratio of 1.84. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 3.50. Over the past year, KT's P/CF has been as high as 2.26 and as low as 1.56, with a median of 1.73.

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

Shares of TeliaSonera currently holds a Forward P/E ratio of 15.44, and its PEG ratio is 0.29. In comparison, its industry sports average P/E and PEG ratios of 6.26 and 0.65.

Over the past year, TLSNY's P/E has been as high as 19.44, as low as 14.40, with a median of 16.32; its PEG ratio has been as high as 0.89, as low as 0.26, with a median of 2.02 during the same time period.

Additionally, TeliaSonera has a P/B ratio of 1.63 while its industry's price-to-book ratio sits at 1.26. For TLSNY, this valuation metric has been as high as 1.75, as low as 1.19, with a median of 1.51 over the past year.

These are only a few of the key metrics included in KT and TeliaSonera strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, KT and TLSNY look like an impressive value stock at the moment.

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