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Should Value Investors Buy Credicorp (BAP) Stock?

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Credicorp (BAP). BAP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

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We also note that BAP holds a PEG ratio of 0.41. 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. BAP's industry has an average PEG of 0.69 right now. BAP's PEG has been as high as 0.49 and as low as 0.31, with a median of 0.39, all within the past year.

Another notable valuation metric for BAP is its P/B ratio of 1.31. 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. BAP's current P/B looks attractive when compared to its industry's average P/B of 1.36. Within the past 52 weeks, BAP's P/B has been as high as 1.83 and as low as 1.26, with a median of 1.44.

Finally, investors will want to recognize that BAP has a P/CF ratio of 7.41. 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. BAP's current P/CF looks attractive when compared to its industry's average P/CF of 11.93. BAP's P/CF has been as high as 8.64 and as low as 6.30, with a median of 7.42, all within the past year.

Another great Banks - Foreign stock you could consider is Deutsche Bank (DB), which is a # 2 (Buy) stock with a Value Score of A.

Shares of Deutsche Bank currently holds a Forward P/E ratio of 5.24, and its PEG ratio is 0.66. In comparison, its industry sports average P/E and PEG ratios of 7.14 and 0.69.

Over the last 12 months, DB's P/E has been as high as 7.21, as low as 4.29, with a median of 5.43, and its PEG ratio has been as high as 1.01, as low as 0.48, with a median of 0.68.

Furthermore, Deutsche Bank holds a P/B ratio of 0.28 and its industry's price-to-book ratio is 1.36. DB's P/B has been as high as 0.37, as low as 0.21, with a median of 0.28 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that Credicorp and Deutsche Bank are likely undervalued currently. And when considering the strength of its earnings outlook, BAP and DB sticks out as one of the market's strongest value stocks.

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Credicorp Ltd. (BAP) : Free Stock Analysis Report

Deutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis Report

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Zacks Investment Research