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Is Deutsche Telekom (DTEGY) Stock Undervalued Right Now?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Deutsche Telekom (DTEGY - Free Report) is a stock many investors are watching right now. DTEGY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.34 right now. For comparison, its industry sports an average P/E of 16.80. Over the past year, DTEGY's Forward P/E has been as high as 14.24 and as low as 11.16, with a median of 12.85.
Investors will also notice that DTEGY has a PEG ratio of 0.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DTEGY's industry currently sports an average PEG of 2.05. Within the past year, DTEGY's PEG has been as high as 1.37 and as low as 0.66, with a median of 1.06.
Investors should also recognize that DTEGY has a P/B ratio of 1.10. 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 1.76. DTEGY's P/B has been as high as 1.11 and as low as 0.81, with a median of 0.96, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. DTEGY has a P/S ratio of 0.86. This compares to its industry's average P/S of 1.34.
If you're looking for another solid Diversified Communication Services value stock, take a look at Telefonica Brasil (VIV - Free Report) . VIV is a # 2 (Buy) stock with a Value score of A.
Telefonica Brasil is currently trading with a Forward P/E ratio of 15.95 while its PEG ratio sits at 2. Both of the company's metrics compare favorably to its industry's average P/E of 16.80 and average PEG ratio of 2.05.
VIV's price-to-earnings ratio has been as high as 19.10 and as low as 12.56, with a median of 15.68, while its PEG ratio has been as high as 2.16 and as low as 0.88, with a median of 1.36, all within the past year.
Telefonica Brasil sports a P/B ratio of 0.99 as well; this compares to its industry's price-to-book ratio of 1.76. In the past 52 weeks, VIV's P/B has been as high as 1.46, as low as 0.82, with a median of 1.07.
These are only a few of the key metrics included in Deutsche Telekom and Telefonica Brasil strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DTEGY and VIV look like an impressive value stock at the moment.
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Is Deutsche Telekom (DTEGY) Stock Undervalued Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Deutsche Telekom (DTEGY - Free Report) is a stock many investors are watching right now. DTEGY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.34 right now. For comparison, its industry sports an average P/E of 16.80. Over the past year, DTEGY's Forward P/E has been as high as 14.24 and as low as 11.16, with a median of 12.85.
Investors will also notice that DTEGY has a PEG ratio of 0.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DTEGY's industry currently sports an average PEG of 2.05. Within the past year, DTEGY's PEG has been as high as 1.37 and as low as 0.66, with a median of 1.06.
Investors should also recognize that DTEGY has a P/B ratio of 1.10. 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 1.76. DTEGY's P/B has been as high as 1.11 and as low as 0.81, with a median of 0.96, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. DTEGY has a P/S ratio of 0.86. This compares to its industry's average P/S of 1.34.
If you're looking for another solid Diversified Communication Services value stock, take a look at Telefonica Brasil (VIV - Free Report) . VIV is a # 2 (Buy) stock with a Value score of A.
Telefonica Brasil is currently trading with a Forward P/E ratio of 15.95 while its PEG ratio sits at 2. Both of the company's metrics compare favorably to its industry's average P/E of 16.80 and average PEG ratio of 2.05.
VIV's price-to-earnings ratio has been as high as 19.10 and as low as 12.56, with a median of 15.68, while its PEG ratio has been as high as 2.16 and as low as 0.88, with a median of 1.36, all within the past year.
Telefonica Brasil sports a P/B ratio of 0.99 as well; this compares to its industry's price-to-book ratio of 1.76. In the past 52 weeks, VIV's P/B has been as high as 1.46, as low as 0.82, with a median of 1.07.
These are only a few of the key metrics included in Deutsche Telekom and Telefonica Brasil strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DTEGY and VIV look like an impressive value stock at the moment.