Yahoo Finance Is Shinhan Financial Group Co (SHG) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Shinhan Financial Group Co (SHG). SHG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 4.95, while its industry has an average P/E of 8.18. Over the past 52 weeks, SHG's Forward P/E has been as high as 5.76 and as low as 3.65, with a median of 4.21.
SHG is also sporting a PEG ratio of 0.59. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SHG's PEG compares to its industry's average PEG of 0.81. Within the past year, SHG's PEG has been as high as 2.74 and as low as 0.59, with a median of 1.21.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SHG has a P/S ratio of 0.63. This compares to its industry's average P/S of 1.24.
Finally, investors should note that SHG has a P/CF ratio of 3.98. 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 11.48. SHG's P/CF has been as high as 4.61 and as low as 3.30, with a median of 3.64, all within the past year.
These are only a few of the key metrics included in Shinhan Financial Group Co'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, SHG looks like an impressive value stock at the moment.
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Shinhan Financial Group Co Ltd (SHG) : Free Stock Analysis Report
