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Is Banco Santander Chile (BSAC) Stock Undervalued Right Now?

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, 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.

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.

One company value investors might notice is Banco Santander Chile (BSAC). BSAC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

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We also note that BSAC holds a PEG ratio of 0.35. 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. BSAC's industry has an average PEG of 0.62 right now. Over the last 12 months, BSAC's PEG has been as high as 8.32 and as low as 0.34, with a median of 1.46.

Investors should also recognize that BSAC has a P/B ratio of 1.39. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.53. Over the past year, BSAC's P/B has been as high as 1.87 and as low as 1.31, with a median of 1.55.

Finally, our model also underscores that BSAC has a P/CF ratio of 11.14. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.26. BSAC's P/CF has been as high as 16.04 and as low as 9.54, with a median of 11.79, all within the past year.

If you're looking for another solid Banks - Foreign value stock, take a look at Banco Santander (SAN). SAN is a # 2 (Buy) stock with a Value score of A.

Banco Santander is currently trading with a Forward P/E ratio of 5.65 while its PEG ratio sits at 0.39. Both of the company's metrics compare favorably to its industry's average P/E of 7.72 and average PEG ratio of 0.62.

SAN's Forward P/E has been as high as 6.42 and as low as 4.44, with a median of 5.45. During the same time period, its PEG ratio has been as high as 0.49, as low as 0.28, with a median of 0.34.

Banco Santander sports a P/B ratio of 0.66 as well; this compares to its industry's price-to-book ratio of 1.53. In the past 52 weeks, SAN's P/B has been as high as 0.73, as low as 0.51, with a median of 0.58.

These are just a handful of the figures considered in Banco Santander Chile and Banco Santander'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 BSAC and SAN is an impressive value stock right now.

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Banco Santander Chile (BSAC) : Free Stock Analysis Report

Banco Santander, S.A. (SAN) : Free Stock Analysis Report

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