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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 to watch right now is PLDT (PHI - Free Report) . PHI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 7.86, while its industry has an average P/E of 12.28. Over the past 52 weeks, PHI's Forward P/E has been as high as 12.21 and as low as 6.69, with a median of 9.74.

Another notable valuation metric for PHI is its P/B ratio of 1.99. 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 attractive against its industry's average P/B of 2.23. PHI's P/B has been as high as 2.55 and as low as 1.55, with a median of 2.10, over the past year.

Finally, investors will want to recognize that PHI has a P/CF ratio of 3.31. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.77. PHI's P/CF has been as high as 4.38 and as low as 2.57, with a median of 3.68, all within the past year.

These are just a handful of the figures considered in PLDT'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 PHI is an impressive value stock right now.


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