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Are Investors Undervaluing Embotelladora Andina (AKO.B) Right Now?

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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 company value investors might notice is Embotelladora Andina (AKO.B - Free Report) . AKO.B is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10. This compares to its industry's average Forward P/E of 21.08. Over the last 12 months, AKO.B's Forward P/E has been as high as 10.74 and as low as 7.84, with a median of 10.

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. AKO.B has a P/S ratio of 0.75. This compares to its industry's average P/S of 2.14.

Finally, investors will want to recognize that AKO.B has a P/CF ratio of 15.83. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AKO.B's P/CF compares to its industry's average P/CF of 26.09. AKO.B's P/CF has been as high as 18.40 and as low as 7.24, with a median of 10.29, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Embotelladora Andina is likely undervalued currently. And when considering the strength of its earnings outlook, AKO.B sticks out at as one of the market's strongest value stocks.


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