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Are Investors Undervaluing Woori Bank (WF) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 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 is trading with P/E ratio of 4.44 right now. For comparison, its industry sports an average P/E of 12.23. Over the past year, WF's Forward P/E has been as high as 6.93 and as low as 4.09, with a median of 5.90.

Investors should also note that WF holds a PEG ratio of 0.98. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WF's PEG compares to its industry's average PEG of 1.73. Over the past 52 weeks, WF's PEG has been as high as 1.16 and as low as 0.82, with a median of 0.99.

Finally, our model also underscores that WF has a P/CF ratio of 4.04. 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. WF's P/CF compares to its industry's average P/CF of 12.59. WF's P/CF has been as high as 6.93 and as low as 3.72, with a median of 4.82, all within the past year.

These are just a handful of the figures considered in Woori Bank'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 WF is an impressive value stock right now.


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