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Is VimpelCom Ltd. (VEON) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 VimpelCom Ltd. (VEON - Free Report) . VEON is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 5.42. This compares to its industry's average Forward P/E of 12.80. VEON's Forward P/E has been as high as 24.31 and as low as 5.26, with a median of 14.22, all within the past year.
Another valuation metric that we should highlight is VEON's P/B ratio of 1.37. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. VEON's current P/B looks attractive when compared to its industry's average P/B of 1.87. Over the past year, VEON's P/B has been as high as 1.83 and as low as 1.07, with a median of 1.59.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. VEON has a P/S ratio of 0.42. This compares to its industry's average P/S of 1.2.
Finally, investors should note that VEON has a P/CF ratio of 1.16. 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 3.91. Over the past year, VEON's P/CF has been as high as 3.81 and as low as 1.12, with a median of 1.75.
These are just a handful of the figures considered in VimpelCom Ltd.'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 VEON is an impressive value stock right now.
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Is VimpelCom Ltd. (VEON) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 VimpelCom Ltd. (VEON - Free Report) . VEON is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 5.42. This compares to its industry's average Forward P/E of 12.80. VEON's Forward P/E has been as high as 24.31 and as low as 5.26, with a median of 14.22, all within the past year.
Another valuation metric that we should highlight is VEON's P/B ratio of 1.37. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. VEON's current P/B looks attractive when compared to its industry's average P/B of 1.87. Over the past year, VEON's P/B has been as high as 1.83 and as low as 1.07, with a median of 1.59.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. VEON has a P/S ratio of 0.42. This compares to its industry's average P/S of 1.2.
Finally, investors should note that VEON has a P/CF ratio of 1.16. 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 3.91. Over the past year, VEON's P/CF has been as high as 3.81 and as low as 1.12, with a median of 1.75.
These are just a handful of the figures considered in VimpelCom Ltd.'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 VEON is an impressive value stock right now.