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Is Euronet Worldwide (EEFT) Stock Undervalued 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.

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.

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.

Euronet Worldwide (EEFT - Free Report) is a stock many investors are watching right now. EEFT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.12. This compares to its industry's average Forward P/E of 12.58. Over the last 12 months, EEFT's Forward P/E has been as high as 15.92 and as low as 9.29, with a median of 13.30.

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. EEFT has a P/S ratio of 1.29. This compares to its industry's average P/S of 1.81.

Finally, we should also recognize that EEFT has a P/CF ratio of 12.52. 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 stock's P/CF looks attractive against its industry's average P/CF of 14.01. Over the past 52 weeks, EEFT's P/CF has been as high as 16.88 and as low as 9.15, with a median of 14.59.

These are only a few of the key metrics included in Euronet Worldwide's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, EEFT looks like an impressive value stock at the moment.


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