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Are Investors Undervaluing Mobile TeleSystems (MBT) 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.

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.

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.

One stock to keep an eye on is Mobile TeleSystems . MBT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.01 right now. For comparison, its industry sports an average P/E of 12.50. MBT's Forward P/E has been as high as 9.61 and as low as 6.59, with a median of 8.04, all within the past year.

Finally, investors should note that MBT has a P/CF ratio of 3.54. 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. MBT's current P/CF looks attractive when compared to its industry's average P/CF of 6.77. Within the past 12 months, MBT's P/CF has been as high as 5.14 and as low as 2.69, with a median of 4.23.

Value investors will likely look at more than just these metrics, but the above data helps show that Mobile TeleSystems is likely undervalued currently. And when considering the strength of its earnings outlook, MBT sticks out at as one of the market's strongest value stocks.

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