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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

KT (KT - Free Report) is a stock many investors are watching right now. KT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.38, which compares to its industry's average of 9.68. KT's Forward P/E has been as high as 7.88 and as low as 5.51, with a median of 6.11, all within the past year.

Another notable valuation metric for KT is its P/B ratio of 0.48. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.03. Within the past 52 weeks, KT's P/B has been as high as 0.52 and as low as 0.39, with a median of 0.43.

Finally, investors should note that KT has a P/CF ratio of 1.62. 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. KT's P/CF compares to its industry's average P/CF of 3.74. KT's P/CF has been as high as 1.82 and as low as 1.43, with a median of 1.66, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that KT is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KT feels like a great value stock at the moment.


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