Is Naspers (NPSNY) Stock Undervalued Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Naspers (NPSNY) is a stock many investors are watching right now. NPSNY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.

Investors should also note that NPSNY holds a PEG ratio of 0.75. 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. NPSNY's PEG compares to its industry's average PEG of 1.75. Over the last 12 months, NPSNY's PEG has been as high as 0.75 and as low as 0.31, with a median of 0.44.

We should also highlight that NPSNY has a P/B ratio of 1.18. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.26. Over the past year, NPSNY's P/B has been as high as 1.18 and as low as 0.66, with a median of 0.89.

These are just a handful of the figures considered in Naspers'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 NPSNY is an impressive value stock right now.

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This article originally published on Zacks Investment Research (zacks.com).

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