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Are Investors Undervaluing Credicorp (BAP) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Credicorp (BAP - Free Report) is a stock many investors are watching right now. BAP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

BAP is also sporting a PEG ratio of 0.56. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BAP's PEG compares to its industry's average PEG of 0.75. Over the last 12 months, BAP's PEG has been as high as 0.82 and as low as 0.39, with a median of 0.55.

Investors should also recognize that BAP has a P/B ratio of 1.55. 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 solid versus its industry's average P/B of 1.63. Over the past year, BAP's P/B has been as high as 1.60 and as low as 1.07, with a median of 1.38.

Finally, our model also underscores that BAP has a P/CF ratio of 9.03. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BAP's current P/CF looks attractive when compared to its industry's average P/CF of 11.96. Over the past year, BAP's P/CF has been as high as 9.54 and as low as 6.04, with a median of 7.94.

Value investors will likely look at more than just these metrics, but the above data helps show that Credicorp is likely undervalued currently. And when considering the strength of its earnings outlook, BAP sticks out at as one of the market's strongest value stocks.

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