Yahoo Finance Are Investors Undervaluing KB Financial Group (KB) Right Now?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 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 5.48 right now. For comparison, its industry sports an average P/E of 8.01. Over the past 52 weeks, KB's Forward P/E has been as high as 5.88 and as low as 3.45, with a median of 4.01.
Investors should also note that KB holds a PEG ratio of 0.38. 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 0.64 right now. Over the last 12 months, KB's PEG has been as high as 0.45 and as low as 0.27, with a median of 0.33.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.82. This compares to its industry's average P/S of 1.19.
Finally, our model also underscores that KB has a P/CF ratio of 5.90. 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 12.64. KB's P/CF has been as high as 6.20 and as low as 3.22, with a median of 3.65, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that KB Financial Group is likely undervalued currently. And when considering the strength of its earnings outlook, KB sticks out at as one of the market's strongest value stocks.
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KB Financial Group Inc (KB) : Free Stock Analysis Report
