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Is China Mobile (CHL) a Great Value Stock Right Now?

Zacks Equity Research

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

China Mobile (CHL) is a stock many investors are watching right now. CHL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.41, while its industry has an average P/E of 11.70. Over the past year, CHL's Forward P/E has been as high as 13.05 and as low as 9.21, with a median of 10.47.

Investors should also recognize that CHL has a P/B ratio of 1.03. 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 2.20. Within the past 52 weeks, CHL's P/B has been as high as 1.43 and as low as 0.97, with a median of 1.16.

These are just a handful of the figures considered in China Mobile'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 CHL is an impressive value stock right now.

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China Mobile (Hong Kong) Ltd. (CHL) : Free Stock Analysis Report
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Zacks Investment Research