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Are Investors Undervaluing Koninklijke Philips (PHG) Right Now?
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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Koninklijke Philips (PHG - Free Report) . PHG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 17.94. This compares to its industry's average Forward P/E of 22.14. Over the past year, PHG's Forward P/E has been as high as 18.69 and as low as 12.29, with a median of 15.20.
Investors should also note that PHG holds a PEG ratio of 0.93. 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. PHG's PEG compares to its industry's average PEG of 2.15. Over the past 52 weeks, PHG's PEG has been as high as 1.33 and as low as 0.78, with a median of 0.92.
Another valuation metric that we should highlight is PHG's P/B ratio of 2.34. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. PHG's current P/B looks attractive when compared to its industry's average P/B of 5.32. Within the past 52 weeks, PHG's P/B has been as high as 2.40 and as low as 1.28, with a median of 1.66.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PHG has a P/S ratio of 1.54. This compares to its industry's average P/S of 1.57.
These are only a few of the key metrics included in Koninklijke Philips'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, PHG looks like an impressive value stock at the moment.
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Are Investors Undervaluing Koninklijke Philips (PHG) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Koninklijke Philips (PHG - Free Report) . PHG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 17.94. This compares to its industry's average Forward P/E of 22.14. Over the past year, PHG's Forward P/E has been as high as 18.69 and as low as 12.29, with a median of 15.20.
Investors should also note that PHG holds a PEG ratio of 0.93. 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. PHG's PEG compares to its industry's average PEG of 2.15. Over the past 52 weeks, PHG's PEG has been as high as 1.33 and as low as 0.78, with a median of 0.92.
Another valuation metric that we should highlight is PHG's P/B ratio of 2.34. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. PHG's current P/B looks attractive when compared to its industry's average P/B of 5.32. Within the past 52 weeks, PHG's P/B has been as high as 2.40 and as low as 1.28, with a median of 1.66.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PHG has a P/S ratio of 1.54. This compares to its industry's average P/S of 1.57.
These are only a few of the key metrics included in Koninklijke Philips'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, PHG looks like an impressive value stock at the moment.