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Is PLDT (PHI) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.

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 an A grade for Value. The stock has a Forward P/E ratio of 8.03. This compares to its industry's average Forward P/E of 12.36. PHI's Forward P/E has been as high as 12.21 and as low as 8.03, with a median of 9.87, all within the past year.

Another notable valuation metric for PHI is its P/B ratio of 1.87. The P/B ratio pits a stock's market value against 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 2.23. Over the past 12 months, PHI's P/B has been as high as 2.55 and as low as 1.87, with a median of 2.11.

Finally, we should also recognize that PHI has a P/CF ratio of 3.26. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PHI's current P/CF looks attractive when compared to its industry's average P/CF of 6.77. PHI's P/CF has been as high as 4.38 and as low as 3.26, with a median of 3.71, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that PLDT is likely undervalued currently. And when considering the strength of its earnings outlook, PHI sticks out at as one of the market's strongest value stocks.


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