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Is KT (KT) 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.

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

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is KT (KT - Free Report) . KT is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.78, which compares to its industry's average of 12.66. Over the past 52 weeks, KT's Forward P/E has been as high as 18.18 and as low as 6.09, with a median of 7.32.

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. KT has a P/S ratio of 0.54. This compares to its industry's average P/S of 1.47.

Finally, investors should note that KT has a P/CF ratio of 2.68. 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 5.82. Over the past 52 weeks, KT's P/CF has been as high as 3.11 and as low as 1.85, with a median of 2.69.

Investors could also keep in mind Vodafone Group (VOD - Free Report) , another Wireless Non-US stock with a Zacks Rank of #2 (Buy) and Value grade of A.

Shares of Vodafone Group currently hold a Forward P/E ratio of 9.98, and its PEG ratio is 0.50. In comparison, its industry sports average P/E and PEG ratios of 12.66 and 0.50.

Over the last 12 months, VOD's P/E has been as high as 12.33, as low as 8.12, with a median of 9.80, and its PEG ratio has been as high as 6.19, as low as 0.43, with a median of 0.54.

Furthermore, Vodafone Group holds a P/B ratio of 0.48 and its industry's price-to-book ratio is 2.76. VOD's P/B has been as high as 0.51, as low as 0.31, with a median of 0.38 over the past 12 months.

These are just a handful of the figures considered in KT and Vodafone Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that KT and VOD is an impressive value stock right now.

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