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Is KB Financial Group (KB) Stock Undervalued 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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 stock to keep an eye on is KB Financial Group (KB - Free Report) . KB is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.45, while its industry has an average P/E of 10.19. Over the past 52 weeks, KB's Forward P/E has been as high as 8.12 and as low as 4.43, with a median of 5.85.

Investors should also note that KB holds a PEG ratio of 0.63. 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. KB's PEG compares to its industry's average PEG of 0.78. KB's PEG has been as high as 0.66 and as low as 0.35, with a median of 0.47, all within the past year.

Investors should also recognize that KB has a P/B ratio of 0.78. The P/B ratio pits a stock's market value against 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 2.27. Over the past 12 months, KB's P/B has been as high as 0.82 and as low as 0.44, with a median of 0.60.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KB has a P/S ratio of 1.18. This compares to its industry's average P/S of 1.67.

Finally, our model also underscores that KB has a P/CF ratio of 7.50. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.44. Within the past 12 months, KB's P/CF has been as high as 7.89 and as low as 4.09, with a median of 6.19.

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


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