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Is KornFerry International (KFY) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

One company to watch right now is KornFerry International (KFY - Free Report) . KFY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.79, which compares to its industry's average of 15.33. KFY's Forward P/E has been as high as 15.53 and as low as 11.84, with a median of 13.67, all within the past year.

Finally, our model also underscores that KFY has a P/CF ratio of 11.04. 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. KFY's P/CF compares to its industry's average P/CF of 11.80. Within the past 12 months, KFY's P/CF has been as high as 15.39 and as low as 10.13, with a median of 13.62.

These are only a few of the key metrics included in KornFerry International'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, KFY looks like an impressive value stock at the moment.


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