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Are Investors Undervaluing PLDT (PHI) 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, 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 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.

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 P/E ratio of 9.40 right now. For comparison, its industry sports an average P/E of 12.48. Over the past year, PHI's Forward P/E has been as high as 12.21 and as low as 8.09, with a median of 10.08.

Another valuation metric that we should highlight is PHI's P/B ratio of 2.06. The P/B ratio pits a stock's market value against 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 2.23. Within the past 52 weeks, PHI's P/B has been as high as 2.56 and as low as 1.90, with a median of 2.14.

Finally, investors should note that PHI has a P/CF ratio of 3.59. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PHI's current P/CF looks attractive when compared to its industry's average P/CF of 6.77. Over the past year, PHI's P/CF has been as high as 4.46 and as low as 3.31, with a median of 3.76.

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


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