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Is Intercorp Financial Services (IFS) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Intercorp Financial Services (IFS - Free Report) . IFS is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.23 right now. For comparison, its industry sports an average P/E of 20.66. Over the last 12 months, IFS's Forward P/E has been as high as 10.57 and as low as 5.64, with a median of 7.15.

Another valuation metric that we should highlight is IFS's P/B ratio of 1.54. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.70. Over the past 12 months, IFS's P/B has been as high as 1.54 and as low as 0.95, with a median of 1.22.

Finally, our model also underscores that IFS has a P/CF ratio of 8.33. 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 stock's P/CF looks attractive against its industry's average P/CF of 21.85. Within the past 12 months, IFS's P/CF has been as high as 8.71 and as low as 6.22, with a median of 7.77.

These are only a few of the key metrics included in Intercorp Financial Services'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, IFS looks like an impressive value stock at the moment.


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