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Is KT Corp. (KT) a Great Value Stock 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

KT Corp. (KT - Free Report) is a stock many investors are watching right now. KT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.98, which compares to its industry's average of 11.27. Over the past year, KT's Forward P/E has been as high as 12.98 and as low as 8.76, with a median of 10.19.

We also note that KT holds a PEG ratio of 0.63. 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. KT's industry currently sports an average PEG of 0.65. KT's PEG has been as high as 1.23 and as low as 0.62, with a median of 0.97, all within the past year.

Another valuation metric that we should highlight is KT's P/B ratio of 0.46. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.03. Within the past 52 weeks, KT's P/B has been as high as 0.59 and as low as 0.45, with a median of 0.53.

These are only a few of the key metrics included in KT Corp.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, KT looks like an impressive value stock at the moment.


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