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Should Value Investors Buy Deutsche Telekom (DTEGY) Stock?

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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 to watch right now is Deutsche Telekom (DTEGY - Free Report) . DTEGY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 15.05 right now. For comparison, its industry sports an average P/E of 19.60. Over the last 12 months, DTEGY's Forward P/E has been as high as 17.39 and as low as 11.90, with a median of 14.15.

Investors should also note that DTEGY holds a PEG ratio of 1.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DTEGY's industry currently sports an average PEG of 2.55. DTEGY's PEG has been as high as 1.48 and as low as 0.88, with a median of 1.17, all within the past year.

Another notable valuation metric for DTEGY is its P/B ratio of 1.70. 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 2.26. Over the past year, DTEGY's P/B has been as high as 1.76 and as low as 1.14, with a median of 1.47.

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


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