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Is Euronet Worldwide (EEFT) a Great Value Stock 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.

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.

Euronet Worldwide (EEFT - Free Report) is a stock many investors are watching right now. EEFT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.31. This compares to its industry's average Forward P/E of 12.68. Over the past year, EEFT's Forward P/E has been as high as 13.82 and as low as 9.29, with a median of 11.63.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. EEFT has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.76.

Finally, investors will want to recognize that EEFT has a P/CF ratio of 11.13. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.47. Over the past 52 weeks, EEFT's P/CF has been as high as 13.51 and as low as 9.15, with a median of 11.83.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Euronet Worldwide is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EEFT feels like a great value stock at the moment.


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