Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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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6 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 6 undervalued stocks in the Telecommunications Services - Integrated industry for Monday, April 24, 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.

8x8 Inc’s Value Grade

Value Grade:

8x8, Inc. is a software-as-a-service (SaaS) provider of contact center, voice, video, chat, and application programming interfaces (API) solutions. The Company's eXperience Communications as a Service (XCaaS) open communications platform is a fully redundant solution, supported by a single, standardized and financially backed service level agreement across unified communications as a service (UCaaS) and contact center as a service (CCaaS). Through its integrated technology platform, the Company offer its customers a portfolio of voice, video, contact center, chat and team collaboration, communication APIs and business analytics solutions, which include 8x8 Work, 8x8 Contact Center, 8x8 CPaaS, and 8x8 X Series. 8x8 Work is a self-contained, end-to-end United Communications solution that delivers enterprise voice with public switched telephone network (PSTN) connectivity, secure video meetings, and unified messaging, including direct messages, and public and private team messaging rooms.

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.

8x8 Inc has a Value Score of 63, which is considered to be undervalued.

When you look at 8x8 Inc’s price-to-sales ratio at 0.48 compared to the industry median at 1.15, this company has a lower price relative to revenue compared to its peers. This could make 8x8 Inc’s stock more 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. 8x8 Inc’s shareholder yield is lower than its industry median ratio of 2.55%. 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. 8x8 Inc’s price-to-book ratio is higher than its industry median ratio of 2.09. This could make 8x8 Inc less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at 8x8 Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. 8x8 Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 10.24. This could make 8x8 Inc more attractive because the lower P/FCF ratio indicates that 8x8 Inc is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Frontier Communications Parent Inc’s Value Grade

Value Grade:

Frontier Communications Parent, Inc. is a communications provider in United States. Its products and services are differentiated into various categories. Data and Internet services include broadband services for consumer and business customers. It provides data transmission services to business customers and other carriers with dedicated high-capacity circuits. Voice services include traditional local and long-distance wireline services, voice over internet protocol services, as well as several unified messaging services offered to its consumer and business customers. Video services provided directly to consumer customers as linear terrestrial television services, through DISH satellite TV service and through partnerships with over-the-top video providers. Video services also include pay per view revenues, video on demand, equipment rentals, and video advertising. It offers services to customers including larger enterprise customers, small and medium businesses and wholesale customers.

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.

Frontier Communications Parent Inc has a Value Score of 68, which is considered to be undervalued.

Frontier Communications Parent Inc’s price-earnings ratio is 11.6 compared to the industry median at 15.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Frontier Communications Parent Inc more attractive for value investors.

Frontier Communications Parent Inc’s price-to-book ratio is higher than its peers. This could make Frontier Communications Parent Inc less attractive for value investors when compared to the industry median at 2.09.

You can read more about Frontier Communications Parent 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.

Orange SA (ADR)’s Value Grade

Value Grade:

Orange SA is a France-based multi-service telecommunications operator. The Company operates seven segments: France, Spain, Europe, Africa & Middle East, Enterprise, International Carriers & Shared Services, Orange Bank. France includes all fixed and mobile communication services to consumers and companies as well as services for carriers. Spain covers fixed line and mobile telephony and fiber. Europe (Poland, Belgium, Luxembourg, Romania, Slovakia and Moldova) provides high-speed fixed and mobile broadband. Africa & Middle East primarily operates in the mobile markets but also provides telephony and fixed Internet services. Enterprise provides digital transformation support. International Carriers & Shared Services includes international carrier and the activities of OCS and Orange Studio in content, among others. Orange Bank provides mobile financial services. Orange SA is the parent company of the Orange group.

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.

Orange SA (ADR) has a Value Score of 71, which is considered to be undervalued.

Orange SA (ADR)’s price-earnings ratio is 15.8 compared to the industry median at 15.2. This means that it has a higher price relative to its earnings compared to its peers. This makes Orange SA (ADR) less attractive for value investors.

Orange SA (ADR)’s price-to-book ratio is higher than its peers. This could make Orange SA (ADR) less attractive for value investors when compared to the industry median at 2.09.

You can read more about Orange SA (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 69, which is considered to be undervalued.

PLDT Inc (ADR)’s price-earnings ratio is 25.5 compared to the industry median at 15.2. This means that it has a higher price relative to its earnings compared to its peers. This makes PLDT Inc (ADR) less attractive for value investors.

PLDT Inc (ADR)’s price-to-book ratio is lower than its peers. This could make PLDT Inc (ADR) more attractive for value investors when compared to the industry median at 2.09.

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.

Telefonica S.A. (ADR)’s Value Grade

Value Grade:

Telefonica, S.A. is an integrated and diversified telecommunications group operating in Europe and Latin America. The Company's services and products include Mobile business, Fixed-line telephony business and Digital services. Its segments include Telefonica Spain, Telefonica Brazil, Telefonica Germany, Telefonica United Kingdom and Telefonica Hispanoamerica (formed by the Company's operators in Argentina, Chile, Peru, Colombia, Mexico, Venezuela, Ecuador and Uruguay). These segments are engaged in activities relating to wireline, wireless, cable, data, Internet and television (TV) businesses and other digital services in accordance with each location. It offers a range of mobile and related services and products to personal and business customers. It offers traditional fixed telecommunication services, Internet and broadband multimedia services and data and business-solutions services. It offers a range of digital services, such as Internet of Things (IoT).

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.

Telefonica S.A. (ADR) has a Value Score of 93, which is considered to be undervalued.

Telefonica S.A. (ADR)’s price-earnings ratio is 12.8 compared to the industry median at 15.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Telefonica S.A. (ADR) more attractive for value investors.

Telefonica S.A. (ADR)’s price-to-book ratio is higher than its peers. This could make Telefonica S.A. (ADR) less attractive for value investors when compared to the industry median at 2.09.

You can read more about Telefonica 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.

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 92, 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 2.09.

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.

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 6 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.

• 8x8 Inc stock has a Value Grade of B.
• Frontier Communications Parent Inc stock has a Value Grade of B.
• Orange SA (ADR) stock has a Value Grade of B.
• PLDT Inc (ADR) stock has a Value Grade of B.
• Telefonica S.A. (ADR) stock has a Value Grade of A.
• Telecom Italia SpA (ADR) stock has a Value Grade of A.

Now that you have a bit more background about each of the 6 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.

• 6 Undervalued Telecommunications Services - Integrated Stocks for Monday, April 24
• 5 Undervalued Telecommunications Services - Integrated Stocks for Friday, April 21
• 4 Undervalued Telecommunications Services - Integrated Stocks for Thursday, April 20
• 4 Undervalued Telecommunications Services - Integrated Stocks for Wednesday, April 19

AAII Disclaimer

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