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Is Woori Bank (WF) 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.

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 value investors might notice is Woori Bank (WF - Free Report) . WF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.14, while its industry has an average P/E of 12.77. WF's Forward P/E has been as high as 9.95 and as low as 5.90, with a median of 7.08, all within the past year.

We also note that WF holds a PEG ratio of 1.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WF's PEG compares to its industry's average PEG of 1.25. Within the past year, WF's PEG has been as high as 1.66 and as low as 0.98, with a median of 1.18.

Finally, investors will want to recognize that WF has a P/CF ratio of 6.50. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.98. Over the past 52 weeks, WF's P/CF has been as high as 9.26 and as low as 5.60, with a median of 6.64.

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


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