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Is KB Financial Group (KB) Stock Undervalued 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 KB Financial Group (KB - Free Report) . KB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 4.91 right now. For comparison, its industry sports an average P/E of 8.18. Over the past year, KB's Forward P/E has been as high as 5.69 and as low as 3.45, with a median of 3.95.

We also note that KB holds a PEG ratio of 0.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KB's industry currently sports an average PEG of 0.80. Over the past 52 weeks, KB's PEG has been as high as 0.63 and as low as 0.27, with a median of 0.33.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KB has a P/S ratio of 0.74. This compares to its industry's average P/S of 1.26.

Finally, investors will want to recognize that KB has a P/CF ratio of 4.41. 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. KB's current P/CF looks attractive when compared to its industry's average P/CF of 11.43. Over the past year, KB's P/CF has been as high as 5.07 and as low as 3.19, with a median of 3.52.

These are only a few of the key metrics included in KB Financial Group'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, KB looks like an impressive value stock at the moment.


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