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Is Korea Electric Power (KEP) 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Korea Electric Power (KEP - Free Report) . KEP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.47, while its industry has an average P/E of 15.20. Over the past year, KEP's Forward P/E has been as high as 47.77 and as low as -15.54, with a median of 21.65.

Investors will also notice that KEP has a PEG ratio of 2.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KEP's PEG compares to its industry's average PEG of 2.33. Within the past year, KEP's PEG has been as high as 9.55 and as low as -3.11, with a median of 4.33.

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


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