We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing Shinhan Financial Group Co (SHG) Right Now?
Read MoreHide Full Article
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One company to watch right now is Shinhan Financial Group Co (SHG - Free Report) . SHG is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.18. This compares to its industry's average Forward P/E of 9.26. Over the past year, SHG's Forward P/E has been as high as 6.79 and as low as 4.11, with a median of 5.34.
Investors will also notice that SHG has a PEG ratio of 0.53. 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. SHG's industry currently sports an average PEG of 0.74. Within the past year, SHG's PEG has been as high as 0.74 and as low as 0.37, with a median of 0.52.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SHG has a P/S ratio of 0.87. This compares to its industry's average P/S of 1.54.
Finally, our model also underscores that SHG has a P/CF ratio of 5.70. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.98. Over the past 52 weeks, SHG's P/CF has been as high as 5.70 and as low as 3.34, with a median of 4.25.
Value investors will likely look at more than just these metrics, but the above data helps show that Shinhan Financial Group Co is likely undervalued currently. And when considering the strength of its earnings outlook, SHG sticks out as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Shinhan Financial Group Co (SHG) Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One company to watch right now is Shinhan Financial Group Co (SHG - Free Report) . SHG is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.18. This compares to its industry's average Forward P/E of 9.26. Over the past year, SHG's Forward P/E has been as high as 6.79 and as low as 4.11, with a median of 5.34.
Investors will also notice that SHG has a PEG ratio of 0.53. 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. SHG's industry currently sports an average PEG of 0.74. Within the past year, SHG's PEG has been as high as 0.74 and as low as 0.37, with a median of 0.52.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SHG has a P/S ratio of 0.87. This compares to its industry's average P/S of 1.54.
Finally, our model also underscores that SHG has a P/CF ratio of 5.70. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.98. Over the past 52 weeks, SHG's P/CF has been as high as 5.70 and as low as 3.34, with a median of 4.25.
Value investors will likely look at more than just these metrics, but the above data helps show that Shinhan Financial Group Co is likely undervalued currently. And when considering the strength of its earnings outlook, SHG sticks out as one of the market's strongest value stocks.