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Is PLDT (PHI) a Great Value Stock 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.

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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 PLDT (PHI - Free Report) . PHI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.78, which compares to its industry's average of 11.71. Over the past year, PHI's Forward P/E has been as high as 12.21 and as low as 8.62, with a median of 10.16.

Finally, investors will want to recognize that PHI has a P/CF ratio of 3.77. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PHI's P/CF compares to its industry's average P/CF of 6.56. Over the past year, PHI's P/CF has been as high as 4.45 and as low as 3.32, with a median of 3.80.

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


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