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Are Investors Undervaluing Turkcell Iletisim Hizmetleri AS (TKC) Right Now?

Zacks

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.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the “Value” category. Stocks with high Zacks Ranks and “A” grades for Value will be some of the highest-quality value stocks on the market today.

Turkcell Iletisim Hizmetleri AS (TKC) is a stock many investors are watching right now. TKC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 5.60, which compares to its industry’s average of 12.30. TKC’s Forward P/E has been as high as 7.75 and as low as 5.07, with a median of 6.84, all within the past year.


Another notable valuation metric for TKC is its P/B ratio of 1.39. 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. This stock’s P/B looks attractive against its industry’s average P/B of 2.23. Within the past 52 weeks, TKC’s P/B has been as high as 1.78 and as low as 1.26, with a median of 1.62.

Finally, we should also recognize that TKC has a P/CF ratio of 3.05. This metric focuses on a firm’s operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock’s P/CF looks attractive against its industry’s average P/CF of 6.77. TKC’s P/CF has been as high as 9.70 and as low as 2.75, with a median of 3.66, all within the past year.

These are just a handful of the figures considered in Turkcell Iletisim Hizmetleri AS’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 TKC is an impressive value stock right now.


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