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Is TAL Education Group (TAL) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 value investors might notice is TAL Education Group (TAL - Free Report) . TAL is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value.

Investors should also note that TAL holds a PEG ratio of 0.47. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TAL's PEG compares to its industry's average PEG of 0.75. TAL's PEG has been as high as 0.52 and as low as 0.44, with a median of 0.47, all within the past year.

Another valuation metric that we should highlight is TAL's P/B ratio of 1.9. 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 attractive against its industry's average P/B of 3.20. Over the past 12 months, TAL's P/B has been as high as 2.38 and as low as 1.22, with a median of 1.78.

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

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