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Should Value Investors Buy PLDT (PHI) Stock?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.

PLDT (PHI - Free Report) is a stock many investors are watching right now. PHI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.51, while its industry has an average P/E of 12.40. Over the last 12 months, PHI's Forward P/E has been as high as 12.21 and as low as 8.09, with a median of 9.87.

We should also highlight that PHI has a P/B ratio of 1.98. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.23. Over the past 12 months, PHI's P/B has been as high as 2.55 and as low as 1.88, with a median of 2.11.

Finally, our model also underscores that PHI has a P/CF ratio of 3.46. 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 6.77. Within the past 12 months, PHI's P/CF has been as high as 4.38 and as low as 3.29, with a median of 3.72.

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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