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Are Investors Undervaluing Naspers (NPSNY) 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.

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.

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 value investors might notice is Naspers (NPSNY - Free Report) . NPSNY is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

Investors will also notice that NPSNY has a PEG ratio of 0.75. 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. NPSNY's PEG compares to its industry's average PEG of 1.76. NPSNY's PEG has been as high as 0.75 and as low as 0.31, with a median of 0.44, all within the past year.

Another valuation metric that we should highlight is NPSNY's P/B ratio of 1.18. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. NPSNY's current P/B looks attractive when compared to its industry's average P/B of 1.28. NPSNY's P/B has been as high as 1.18 and as low as 0.66, with a median of 0.89, over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Naspers is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NPSNY feels like a great value stock at the moment.

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