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Are Investors Undervaluing PLDT (PHI) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

PLDT (PHI - Free Report) is a stock many investors are watching right now. PHI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.93, while its industry has an average P/E of 11.17. Over the last 12 months, PHI's Forward P/E has been as high as 12.21 and as low as 8.62, with a median of 10.08.

Another valuation metric that we should highlight is PHI's P/B ratio of 1.97. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. PHI's current P/B looks attractive when compared to its industry's average P/B of 2.11. Within the past 52 weeks, PHI's P/B has been as high as 2.56 and as low as 1.91, with a median of 2.15.

Finally, we should also recognize that PHI has a P/CF ratio of 3.43. 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. PHI's current P/CF looks attractive when compared to its industry's average P/CF of 6.40. Over the past 52 weeks, PHI's P/CF has been as high as 4.46 and as low as 3.32, with a median of 3.78.

These are only a few of the key metrics included in PLDT'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, PHI looks like an impressive value stock at the moment.


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