Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Telecommunications Services - Integrated industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Telecommunications Services - Integrated Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Telecommunications Services - Integrated Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Telecommunications Services - Integrated industry for Thursday, February 16, 2023. Let’s take a closer look at their individual scores to see how they measure up against each other and the Telecommunications Services - Integrated industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

CIBL Inc’s Value Grade

Value Grade:

CIBL, Inc. is a holding company. The Company primarily consisted of cash and liquid investments and a telecommunications operation in New Hampshire. Its office is located in Reno, Nevada. The Company’s subsidiary provides broadband and communications services to an approximately 35 -square-mile area in northern New Hampshire, including the Omni Mount Washington Hotel and Resort, The Mount Washington Cog Railway, and the summit of Mount Washington, New Hampshire’s highest mountain.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

CIBL Inc has a Value Score of 69, which is considered to be undervalued.

When you look at CIBL Inc’s price-to-sales ratio at 12.47 compared to the industry median at 1.35, this company has a higher price relative to revenue compared to its peers. This could make CIBL Inc’s stock less attractive for value investors.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. CIBL Inc’s shareholder yield is higher than its industry median ratio of 3.03%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. CIBL Inc’s price-to-book ratio is lower than its industry median ratio of 2.28. This could make CIBL Inc more attractive to investors looking for a new addition to their portfolio.

Hellenic Telecom Organization S.A. (ADR)’s Value Grade

Value Grade:

Hellenic Telecommunications Organization S.A. (OTE) is engaged in the provision of telecommunications and related services. The Company offers a range of telecommunications services, including fixed-line and mobile telephony, broadband services, pay television and information and communications technology (ICT) solutions. Its segments include OTE, COSMOTE group, TELEKOM ROMANIA and Other. In Greece, the Company is also involved in maritime communications, real-estate and professional training. The Company's OTE segment provides fixed-line services, Internet access services, ICT services and television services in Greece. The COSMOTE group segment offers mobile telecommunications services in Greece, Albania and Romania. The TELEKOM ROMANIA segment provides fixed-line services, Internet access services, ICT services and television services in Romania. The Other segment consists of other operations of the Company.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Hellenic Telecom Organization S.A. (ADR) has a Value Score of 76, which is considered to be undervalued.

Hellenic Telecom Organization S.A. (ADR)’s price-earnings ratio is 13.0 compared to the industry median at 13.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Hellenic Telecom Organization S.A. (ADR) more attractive for value investors.

Hellenic Telecom Organization S.A. (ADR)’s price-to-book ratio is lower than its peers. This could make Hellenic Telecom Organization S.A. (ADR) more attractive for value investors when compared to the industry median at 2.28.

You can read more about Hellenic Telecom Organization S.A. (ADR)’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

PLDT Inc (ADR)’s Value Grade

Value Grade:

PLDT Inc. is a Philippines-based diversified telecommunication company. The Company operates through three business segments: Wireless, Fixed Line and Others. The Company, through its business segments, offers a range of telecommunications services across the Philippines' fiber optic backbone and wireless and fixed line networks. Its wireless segment provides mobile telecommunications services provided by Smart and DMPI; SBI and PDSI are its wireless broadband service provider; and mobile virtual network operations. Its fixed line segment provides telecommunications services. It also provides fixed line services through its subsidiaries, namely, ClarkTel, BCC and PLDT Global and certain subsidiaries, data center, cloud, cyber security services, managed information technology services and reseller ship, and distribution of Filipino channels. Its others segment includes PCEV, PGIH, PLDT Digital and its subsidiaries, and PGIC, an investment company.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

PLDT Inc (ADR) has a Value Score of 85, which is considered to be undervalued.

PLDT Inc (ADR)’s price-earnings ratio is 8.3 compared to the industry median at 13.8. This means that it has a lower price relative to its earnings compared to its peers. This makes PLDT Inc (ADR) more attractive for value investors.

PLDT Inc (ADR)’s price-to-book ratio is lower than its peers. This could make PLDT Inc (ADR) fairly attractive for value investors when compared to the industry median at 2.28.

You can read more about PLDT Inc (ADR)’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Telecom Italia SpA (ADR)’s Value Grade

Value Grade:

Telecom Italia S.p.A. (Telecom Italia) operates fixed voice and data infrastructure in Italy, and provides mobile network platforms. The Company focuses on various areas of digital services, including Enriched Communication, Trusted Digital Life, Business Life, Indoor Life, Mobile Open Life and Digital Entertainment. Its segments include Consumer, Business, National Wholesale and Other. It is engaged in developing various projects in areas, including Smart Green, Social Reading, Solutions for good schooling, Digital tourism 2.0, Smart Home, FriendTV and Big Data. Smart Green is the assessment of projects connected with the environment and potential partnerships with the local government offices for the monitoring of air in public offices and urban areas, using networks of sensors connected to the Company's Cloud. The Company is involved, either alone or in partnership with external partners, in devising and developing healthcare services at national, regional and local level.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Telecom Italia SpA (ADR) has a Value Score of 95, which is considered to be undervalued.

Telecom Italia SpA (ADR)’s price-to-book ratio is higher than its peers. This could make Telecom Italia SpA (ADR) less attractive for value investors when compared to the industry median at 2.28.

You can read more about Telecom Italia SpA (ADR)’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Turkcell Iletisim Hizmetleri A.S. (ADR)’s Value Grade

Value Grade:

Turkcell Iletisim Hizmetleri AS is engaged in establishing and operating a Global System for Mobile Communications (GSM) network in Turkey and regional states. The Company's segments include Turkcell Turkey, which includes the operations of Turkcell Superonline, Turkcell Satis ve Dagitim Hizmetleri A.S., group call center operations of Global Bilgi Pazarlama Danisma ve Cagri Servisi Hizmetleri A.S., Turktell Bilisim Servisleri A.S., Kule Hizmet ve Isletmecilik A.S., Turkcell Odeme Hizmetleri A.S. and Turkcell Gayrimenkul Hizmetleri A.S; Turkcell International, which includes the operations of Kibris Mobile Telekomunikasyon Limited Sirketi, Eastasian Consortium BV, lifecell LLC, UkrTower LLC, LLC Global Bilgi, Turkcell Europe GmbH, Lifetech LLC, Beltower LLC and Fintur Holdings BV, and Other, which comprises the information and entertainment services in Turkey and Azerbaijan, and non-group call center operations of Turkcell Global Bilgi and Turkcell Finansman AS.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Turkcell Iletisim Hizmetleri A.S. (ADR) has a Value Score of 81, which is considered to be undervalued.

Turkcell Iletisim Hizmetleri A.S. (ADR)’s price-earnings ratio is 12.5 compared to the industry median at 13.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Turkcell Iletisim Hizmetleri A.S. (ADR) more attractive for value investors.

Turkcell Iletisim Hizmetleri A.S. (ADR)’s price-to-book ratio is lower than its peers. This could make Turkcell Iletisim Hizmetleri A.S. (ADR) more attractive for value investors when compared to the industry median at 2.28.

You can read more about Turkcell Iletisim Hizmetleri A.S. (ADR)’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Telkom Indonesia (Persero) Tbk PT -ADR’s Value Grade

Value Grade:

PT Telkom Indonesia (Persero) Tbk is an Indonesia-based telecommunication company. The Company is engaged in information and communication technology (ICT) services and telecommunications networks. The Consumer segment is engaged in providing fixed voice, fixed broadband, and digital services. The Mobile segment provides cellular services, including voice and SMS, mobile broadband, as well as mobile digital services including IoT, big data, financial services, music, gaming and digital advertisement. Its Enterprise segment offers ICT and smart platform services, including connectivity, IT services, data centers and cloud, business process outsourcing, devices, satellite business and digital services. Its Wholesale and International Business segment offers domestic and international wholesale traffic, network, and digital platforms and services, as well as tower and managed infrastructure and network. The Other segment comprises digital services and property management.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Telkom Indonesia (Persero) Tbk PT -ADR has a Value Score of 67, which is considered to be undervalued.

Telkom Indonesia (Persero) Tbk PT -ADR’s price-earnings ratio is 15.1 compared to the industry median at 13.8. This means that it has a higher price relative to its earnings compared to its peers. This makes Telkom Indonesia (Persero) Tbk PT -ADR less attractive for value investors.

Telkom Indonesia (Persero) Tbk PT -ADR’s price-to-book ratio is lower than its peers. This could make Telkom Indonesia (Persero) Tbk PT -ADR more attractive for value investors when compared to the industry median at 2.28.

You can read more about Telkom Indonesia (Persero) Tbk PT -ADR’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Verizon Communications Inc.’s Value Grade

Value Grade:

Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses, and governmental agencies. Its reportable segments are Verizon Consumer Group and Verizon Business Group. Its Consumer segment provides wireless and wireline communications services. Its wireless services are provided across wireless networks in the United States (U.S.) under the Verizon brand. Its wireline services are provided in nine states in the Mid-Atlantic and Northeastern U.S., as well as Washington D.C., over its fiber-optic network under the Fios brand and over a traditional copper-based network. Its Business segment provides wireless and wireline communications services and products, including data, video and conferencing services, security and managed network services, local and long-distance voice services and network access to deliver various Internet of Things services and products.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Verizon Communications Inc. has a Value Score of 67, which is considered to be undervalued.

Verizon Communications Inc.’s price-earnings ratio is 8.0 compared to the industry median at 13.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Verizon Communications Inc. more attractive for value investors.

Verizon Communications Inc.’s price-to-book ratio is higher than its peers. This could make Verizon Communications Inc. less attractive for value investors when compared to the industry median at 2.28.

You can read more about Verizon Communications Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Telecommunications Services - Integrated Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Telecommunications Services - Integrated stocks as well as other industrys.

Choosing Which of the 7 Best Telecommunications Services - Integrated Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• CIBL Inc stock has a Value Grade of B.
• Hellenic Telecom Organization S.A. (ADR) stock has a Value Grade of B.
• PLDT Inc (ADR) stock has a Value Grade of A.
• Telecom Italia SpA (ADR) stock has a Value Grade of A.
• Turkcell Iletisim Hizmetleri A.S. (ADR) stock has a Value Grade of A.
• Telkom Indonesia (Persero) Tbk PT -ADR stock has a Value Grade of B.
• Verizon Communications Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 undervalued stocks in the Telecommunications Services - Integrated industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Telecommunications Services - Integrated Stocks

Want to learn more about Telecommunications Services - Integrated stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Telecommunications Services - Integrated Stocks for Thursday, February 16
• 6 Undervalued Telecommunications Services - Integrated Stocks for Wednesday, February 15
• 4 Undervalued Telecommunications Services - Integrated Stocks for Tuesday, February 14
• 6 Undervalued Telecommunications Services - Integrated Stocks for Monday, February 13

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