Should Value Investors Buy KB Financial Group (KB) Stock?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is KB Financial Group (KB). KB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 3.96 right now. For comparison, its industry sports an average P/E of 7.21. KB's Forward P/E has been as high as 5.01 and as low as 3.04, with a median of 3.94, all within the past year.
KB is also sporting a PEG ratio of 0.32. 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 0.59 right now. Over the last 12 months, KB's PEG has been as high as 0.65 and as low as 0.29, with a median of 0.43.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 0.71. This compares to its industry's average P/S of 1.31.
Finally, investors will want to recognize that KB has a P/CF ratio of 3.82. 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. KB's current P/CF looks attractive when compared to its industry's average P/CF of 12.02. KB's P/CF has been as high as 5.04 and as low as 2.79, with a median of 3.52, all within the past year.
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
