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Is Euronet Worldwide (EEFT) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 to watch right now is Euronet Worldwide (EEFT - Free Report) . EEFT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.21, while its industry has an average P/E of 16.48. Over the past year, EEFT's Forward P/E has been as high as 13.06 and as low as 9.65, with a median of 10.99.

EEFT is also sporting a PEG ratio of 0.80. 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. EEFT's industry currently sports an average PEG of 0.99. EEFT's PEG has been as high as 0.86 and as low as 0.69, with a median of 0.75, all within the past year.

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. EEFT has a P/S ratio of 1.2. This compares to its industry's average P/S of 1.91.

Finally, investors should note that EEFT has a P/CF ratio of 11.65. 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. EEFT's P/CF compares to its industry's average P/CF of 18.56. EEFT's P/CF has been as high as 13.48 and as low as 9.76, with a median of 11.65, all within the past year.

These are just a handful of the figures considered in Euronet Worldwide'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 EEFT is an impressive value stock right now.


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