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Is Deutsche Telekom (DTEGY) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Deutsche Telekom (DTEGY - Free Report) is a stock many investors are watching right now. DTEGY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We also note that DTEGY holds a PEG ratio of 1.58. 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. DTEGY's PEG compares to its industry's average PEG of 1.61. Over the past 52 weeks, DTEGY's PEG has been as high as 13.46 and as low as 1.25, with a median of 1.33.

Investors should also recognize that DTEGY has a P/B ratio of 1.56. 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 1.79. Within the past 52 weeks, DTEGY's P/B has been as high as 1.66 and as low as 1.32, with a median of 1.52.

Finally, we should also recognize that DTEGY has a P/CF ratio of 4.53. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DTEGY's P/CF compares to its industry's average P/CF of 11.56. Within the past 12 months, DTEGY's P/CF has been as high as 4.80 and as low as 3.36, with a median of 3.88.

These are just a handful of the figures considered in Deutsche Telekom'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 DTEGY is an impressive value stock right now.


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