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Is China Mobile (CHL) Stock Undervalued 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One company to watch right now is China Mobile (CHL). CHL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.23, which compares to its industry's average of 12.09. Over the past year, CHL's Forward P/E has been as high as 11.45 and as low as 7.83, with a median of 10.35.

Investors should also recognize that CHL has a P/B ratio of 0.88. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CHL's current P/B looks attractive when compared to its industry's average P/B of 2.23. Over the past year, CHL's P/B has been as high as 1.18 and as low as 0.80, with a median of 1.06.

These figures are just a handful of the metrics value investors tend to look at, but they help show that China Mobile is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CHL feels like a great value stock at the moment.


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