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Are Investors Undervaluing Deutsche Telekom (DTEGY) 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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Deutsche Telekom (DTEGY - Free Report) . DTEGY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 13.02 right now. For comparison, its industry sports an average P/E of 16.30. Over the last 12 months, DTEGY's Forward P/E has been as high as 13.43 and as low as 10.59, with a median of 12.14.

DTEGY is also sporting a PEG ratio of 0.91. 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. DTEGY's industry currently sports an average PEG of 1.80. Over the past 52 weeks, DTEGY's PEG has been as high as 2.25 and as low as 0.88, with a median of 1.53.

Another valuation metric that we should highlight is DTEGY's P/B ratio of 1.34. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.33. DTEGY's P/B has been as high as 1.34 and as low as 0.95, with a median of 1.17, over the past year.

These are just a handful of the figures considered in Deutsche Telekom'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 DTEGY is an impressive value stock right now.


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