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Is Woori Bank (WF) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Woori Bank (WF - Free Report) . WF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 3.83, while its industry has an average P/E of 7.98. Over the past 52 weeks, WF's Forward P/E has been as high as 4.34 and as low as 2.78, with a median of 3.46.

Investors will also notice that WF has 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. WF's industry has an average PEG of 0.66 right now. Within the past year, WF's PEG has been as high as 2.94 and as low as 0.16, with a median of 2.27.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. WF has a P/S ratio of 0.45. This compares to its industry's average P/S of 1.17.

Finally, we should also recognize that WF has a P/CF ratio of 3.21. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.70. Over the past 52 weeks, WF's P/CF has been as high as 3.41 and as low as 1.95, with a median of 2.74.

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


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