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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.
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 to watch right now is KB Financial (KB). KB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.01, while its industry has an average P/E of 9.24. KB's Forward P/E has been as high as 6.01 and as low as 2.86, with a median of 5.16, all within the past year.
Investors will also notice that KB has a PEG ratio of 1.22. 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 has an average PEG of 1.69 right now. Within the past year, KB's PEG has been as high as 1.79 and as low as 0.58, with a median of 1.05.
Investors should also recognize that KB has a P/B ratio of 0.52. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. KB's current P/B looks attractive when compared to its industry's average P/B of 0.97. KB's P/B has been as high as 0.54 and as low as 0.26, with a median of 0.41, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KB has a P/S ratio of 1.2. This compares to its industry's average P/S of 1.43.
Finally, our model also underscores that KB has a P/CF ratio of 4.62. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.73. Within the past 12 months, KB's P/CF has been as high as 5.26 and as low as 2.23, with a median of 3.58.
These are only a few of the key metrics included in KB Financial's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, KB looks like an impressive value stock at the moment.
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KB Financial Group Inc (KB) : Free Stock Analysis Report
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