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BAP or DBSDY: Which Is the Better Value Stock Right Now?

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Investors interested in Banks - Foreign stocks are likely familiar with Credicorp (BAP - Free Report) and DBS Group Holdings Ltd (DBSDY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both Credicorp and DBS Group Holdings Ltd are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

BAP currently has a forward P/E ratio of 9.03, while DBSDY has a forward P/E of 10.96. We also note that BAP has a PEG ratio of 0.54. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DBSDY currently has a PEG ratio of 9.14.

Another notable valuation metric for BAP is its P/B ratio of 1.47. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DBSDY has a P/B of 1.82.

Based on these metrics and many more, BAP holds a Value grade of A, while DBSDY has a Value grade of D.

Both BAP and DBSDY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BAP is the superior value option right now.


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