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Is Turkcell Iletisim Hizmetleri AS (TKC) Stock Undervalued Right Now?

Zacks Equity Research

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, 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One stock to keep an eye on is Turkcell Iletisim Hizmetleri AS (TKC). TKC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.50, which compares to its industry's average of 12.33. TKC's Forward P/E has been as high as 10.87 and as low as 5.20, with a median of 8.71, all within the past year.

Another valuation metric that we should highlight is TKC's P/B ratio of 2.29. The P/B is a method of comparing a stock's market value to 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 2.34. TKC's P/B has been as high as 2.31 and as low as 1.02, with a median of 1.78, over the past year.

Finally, our model also underscores that TKC has a P/CF ratio of 5.93. 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 stock's P/CF looks attractive against its industry's average P/CF of 22.07. Within the past 12 months, TKC's P/CF has been as high as 7.11 and as low as 2.73, with a median of 4.69.

These are only a few of the key metrics included in Turkcell Iletisim Hizmetleri AS'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, TKC looks like an impressive value stock at the moment.

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