Should Value Investors Buy KT (KT) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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.
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.
One stock to keep an eye on is KT (KT). KT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.67. This compares to its industry's average Forward P/E of 6.76. Over the last 12 months, KT's Forward P/E has been as high as 7.52 and as low as 5.36, with a median of 6.36.
We should also highlight that KT has a P/B ratio of 0.50. 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. KT's current P/B looks attractive when compared to its industry's average P/B of 1.44. Over the past 12 months, KT's P/B has been as high as 0.56 and as low as 0.40, with a median of 0.50.
Finally, we should also recognize that KT has a P/CF ratio of 1.64. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 1.85. Over the past year, KT's P/CF has been as high as 1.83 and as low as 1.33, with a median of 1.53.
If you're looking for another solid Wireless Non-US value stock, take a look at SK Telecom Co. (SKM). SKM is a # 2 (Buy) stock with a Value score of A.
Additionally, SK Telecom Co. has a P/B ratio of 1.08 while its industry's price-to-book ratio sits at 1.44. For SKM, this valuation metric has been as high as 1.25, as low as 0.86, with a median of 1.05 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that KT and SK Telecom Co. are likely undervalued currently. And when considering the strength of its earnings outlook, KT and SKM sticks out as one of the market's strongest value stocks.
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KT Corporation (KT) : Free Stock Analysis Report
SK Telecom Co., Ltd. (SKM) : Free Stock Analysis Report
