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Are Investors Undervaluing Banco Santander Chile (BSAC) Right Now?

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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 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.

Banco Santander Chile (BSAC - Free Report) is a stock many investors are watching right now. BSAC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors will also notice that BSAC has a PEG ratio of 0.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BSAC's industry has an average PEG of 0.66 right now. Over the past 52 weeks, BSAC's PEG has been as high as 8.32 and as low as 0.34, with a median of 1.42.

Finally, investors will want to recognize that BSAC has a P/CF ratio of 11.99. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BSAC's P/CF compares to its industry's average P/CF of 12.70. Over the past 52 weeks, BSAC's P/CF has been as high as 16.04 and as low as 9.54, with a median of 11.70.

Another great Banks - Foreign stock you could consider is Banco Santander (SAN - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Shares of Banco Santander are currently trading at a forward earnings multiple of 5.60 and a PEG ratio of 0.39 compared to its industry's P/E and PEG ratios of 7.98 and 0.66, respectively.

SAN's Forward P/E has been as high as 6.42 and as low as 4.44, with a median of 5.47. During the same time period, its PEG ratio has been as high as 0.49, as low as 0.28, with a median of 0.34.

Additionally, Banco Santander has a P/B ratio of 0.67 while its industry's price-to-book ratio sits at 1.43. For SAN, this valuation metric has been as high as 0.73, as low as 0.51, with a median of 0.59 over the past year.

These are just a handful of the figures considered in Banco Santander Chile and Banco Santander's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BSAC and SAN is an impressive value stock right now.


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