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Is Turkcell Iletisim Hizmetleri AS (TKC) Stock Undervalued 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company to watch right now is Turkcell Iletisim Hizmetleri AS (TKC - Free Report) . TKC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.37, while its industry has an average P/E of 12.47. TKC's Forward P/E has been as high as 12.01 and as low as 5.20, with a median of 8.85, all within the past year.

Another valuation metric that we should highlight is TKC's P/B ratio of 2.25. 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. TKC's current P/B looks attractive when compared to its industry's average P/B of 2.31. TKC's P/B has been as high as 2.29 and as low as 1.02, with a median of 1.78, over the past year.

Finally, we should also recognize that TKC has a P/CF ratio of 5.84. 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 21.28. Within the past 12 months, TKC's P/CF has been as high as 7.19 and as low as 2.73, with a median of 4.69.

These are only a few of the key metrics included in Turkcell Iletisim Hizmetleri AS's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TKC looks like an impressive value stock at the moment.


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