Yahoo Finance Should Value Investors Buy Shinhan Financial Group Co (SHG) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.
One stock to keep an eye on is Shinhan Financial Group Co (SHG). SHG is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 4.12, which compares to its industry's average of 8.09. Over the last 12 months, SHG's Forward P/E has been as high as 5.32 and as low as 3.06, with a median of 4.07.
Investors will also notice that SHG has a PEG ratio of 0.60. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SHG's industry has an average PEG of 0.75 right now. Over the last 12 months, SHG's PEG has been as high as 0.60 and as low as 0.22, with a median of 0.36.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SHG has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.49.
Finally, we should also recognize that SHG has a P/CF ratio of 3.41. 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 13.63. Within the past 12 months, SHG's P/CF has been as high as 4.38 and as low as 2.63, with a median of 3.43.
Value investors will likely look at more than just these metrics, but the above data helps show that Shinhan Financial Group Co is likely undervalued currently. And when considering the strength of its earnings outlook, SHG sticks out at as one of the market's strongest value stocks.
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Shinhan Financial Group Co Ltd (SHG) : Free Stock Analysis Report
