Are Investors Undervaluing KB Financial Group (KB) Right Now?
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.
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.
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.
KB Financial Group (KB) is a stock many investors are watching right now. KB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 3.82. This compares to its industry's average Forward P/E of 7.08. Over the past 52 weeks, KB's Forward P/E has been as high as 5.01 and as low as 3.04, with a median of 3.94.
KB is also sporting a PEG ratio of 0.31. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. KB's industry currently sports an average PEG of 0.59. KB's PEG has been as high as 0.65 and as low as 0.29, with a median of 0.43, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. KB has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.29.
Finally, investors will want to recognize that KB has a P/CF ratio of 3.80. 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. KB's P/CF compares to its industry's average P/CF of 13.08. Over the past year, KB's P/CF has been as high as 5.06 and as low as 2.66, with a median of 3.49.
These figures are just a handful of the metrics value investors tend to look at, but they help show that KB Financial Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KB feels like a great value stock at the moment.
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KB Financial Group Inc (KB) : Free Stock Analysis Report
