Discover the Top 10 International Value Stocks that promise exceptional value and growth potential for investors navigating the global markets in 2026.
As we step into 2026, the global investment landscape continues to evolve amid economic uncertainties, geopolitical tensions, and shifting market dynamics. Value investing, a strategy popularized by legends like Benjamin Graham and Warren Buffett, remains a timeless approach. It focuses on identifying stocks trading below their intrinsic value, offering a margin of safety and potential for significant upside when the market corrects its mispricing. In a world dominated by high-growth tech stocks and U.S. large-caps, savvy investors are turning their gaze internationally to uncover hidden gems.
Introduction to International Value Investing in 2026
Why international value stocks in 2026? The U.S. market, while robust, is often overcrowded and overvalued, with the S&P 500 trading at elevated multiples. In contrast, international markets—particularly in emerging and developed economies like South Korea, China, South Africa, Brazil, Japan, and the Netherlands—offer diversification, exposure to global growth drivers, and deeply discounted valuations. Factors such as currency fluctuations, regulatory environments, and cyclical industries contribute to these discounts, creating opportunities for patient investors.
The current economic backdrop supports this shift. With inflation stabilizing in many regions, interest rates potentially easing, and supply chain recoveries post-pandemic, sectors like steel, energy, utilities, telecom, automotive, and fintech are poised for rebound. South Korea’s tech-driven economy, China’s fintech resurgence, and Brazil’s commodity strength are particularly compelling. However, risks like political instability and commodity volatility must be weighed.
This article dives into the top 10 international value stocks to own in 2026, based on a detailed analysis of undervalued companies with strong fundamentals, cash flows, and growth potential. These selections emphasize low price-to-earnings (P/E), price-to-book (P/B) ratios, and attractive dividend yields, drawing from cyclical pessimism, regulatory pressures, and overlooked niches. We’ll explore each stock’s overview, financial metrics, value proposition, risks, and outlook, helping you build a diversified portfolio for long-term wealth creation.
The list includes:
- POSCO Holdings (NYSE: PKX) – South Korea
- Sasol Ltd. (NYSE: SSL) – South Africa
- Korea Electric Power Corp. (NYSE: KEP) – South Korea
- LuxExperience (NYSE: LUXE) – Netherlands
- Gerdau (NYSE: GGB) – Brazil
- Honda Motor (NYSE: HMC) – Japan
- SK Telecom (NYSE: SKM) – South Korea
- Jiayin Group (NASDAQ: JFIN) – China
- FinVolution Group (NYSE: FINV) – China
- KT Corp. (NYSE: KT) – South Korea
These stocks were selected for their global reach, resilient business models, and trading at discounts amid temporary headwinds. As of January 2026, many boast P/E ratios under 15, P/B below 1, and yields over 3%, making them prime candidates for value hunters.
Top 10 International Value Stocks to Own 2026 Revealed
1. POSCO Holdings (NYSE: PKX) – A Steel Giant Poised for Rebound
Company Overview
POSCO Holdings, headquartered in Seoul, South Korea, stands as one of the world’s largest steel producers. Founded in 1968, the company supplies high-quality steel to industries like automotive, shipbuilding, construction, and energy. Beyond traditional steel, POSCO is expanding into green materials, battery components, and next-generation technologies, including lithium iron phosphate (LFP) cathode materials. Its integrated operations provide efficiency advantages, with segments covering steel production, trading, construction, and energy solutions.
Financial Analysis
As of January 2026, PKX trades at $60.49, with a market cap of $18.31 billion. The trailing twelve-month (TTM) P/E is 48.78, but the P/B ratio of 0.43 signals deep undervaluation relative to assets. Dividend yield stands at 3.29%, appealing to income-focused investors. Revenue TTM hits 70.06 trillion KRW, with EPS at $1.10. The 52-week range is $39.40 to $61.24, and beta of 1.45 indicates moderate volatility. Analysts target $69.46, suggesting upside potential.
Why It’s a Value Stock in 2026
Cyclical pessimism in the steel industry, driven by global demand fluctuations, has kept PKX discounted. Yet, its high-quality assets and operating leverage position it for torque when demand rebounds—expected in 2026 with infrastructure booms in Asia and green energy transitions. POSCO’s pivot to battery materials aligns with EV growth, adding long-term value. Trading at a fraction of book value, it offers a margin of safety.
Risks
Commodity price volatility, trade tensions, and environmental regulations pose challenges. South Korea’s economic ties to China could amplify slowdowns.
Outlook
With partnerships like the Factorial collaboration for battery tech and investments in U.S. mills, POSCO is set for growth. In 2026, as global manufacturing recovers, expect earnings expansion and multiple rerating, making it a top international value pick.
2. Sasol Ltd. (NYSE: SSL) – Energy and Chemicals Innovator
Company Overview
Sasol, based in Johannesburg, South Africa, is an integrated energy and chemicals firm specializing in converting coal and natural gas into fuels and chemicals. Established in 1950, it serves global markets with products like bitumen, fuels, lubricants, and fertilizers. Operations span engineering, R&D, and mining, with a focus on sustainable solutions like insect oil-based surfactants.
Financial Analysis
Current price: $6.81, market cap: $4.34 billion. TTM P/E: 10.64, P/B: 0.47. No forward dividend listed, but historical cash flows support potential payouts. Revenue TTM: 249.1 billion ZAR, EPS: $0.64. 52-week range: $2.78 to $7.39; beta: 0.17 (low volatility). Analysts target $6.81, with recent neutral ratings.
Why It’s a Value Stock in 2026
Operational hiccups and commodity swings have depressed valuations, but Sasol’s cash generation from energy demand remains robust. Ranked among the cheapest global stocks, its P/B under 0.5 implies assets bought at a steal. As energy transitions accelerate, Sasol’s innovations position it for upside.
Risks
Volatile oil prices, South African political risks, and environmental scrutiny could impact profitability.
Outlook
Recent metrics for Q1 2026 show resilience, with bull case theories highlighting recovery potential. In a stabilizing energy market, SSL could deliver strong returns for value investors.
3. Korea Electric Power Corp. (NYSE: KEP) – Essential Utility Backbone
Company Overview
KEPCO, founded in 1898 and based in Naju-Si, South Korea, is the nation’s dominant electric utility. It handles generation, transmission, and distribution, using diverse sources like nuclear, coal, LNG, and renewables. With 85,424 MW capacity, it powers one of Asia’s most industrialized economies and expands into engineering and green energy.
Financial Analysis
Price: $19.25, market cap: $24.72 billion. TTM P/E: 4.38, P/B: 0.71. Yield: 0.45%. Revenue TTM: 97.28 trillion KRW, EPS: $4.40. 52-week: $6.89 to $19.31; beta: 0.67. Target: $20.00.
Why It’s a Value Stock in 2026
Government pricing and fuel costs have squeezed margins, but KEP trades at extreme lows, essentially pricing in national infrastructure cheaply. Stable demand and cash flows make it a defensive value play.
Risks
Regulatory controls and energy price volatility.
Outlook
At CES 2026, KEP showcased future tech, signaling innovation. Expect steady growth in a tech-savvy economy.
4. LuxExperience (NYSE: LUXE) – Luxury Travel Niche Player
Company Overview
LuxExperience B.V., based in Munich, Netherlands (formerly MYT Netherlands), operates a digital luxury platform offering fashion and experiences under brands like Mytheresa and NET-A-PORTER. It targets premium consumers globally, focusing on womenswear, menswear, and lifestyle products.
Financial Analysis
Price: $8.38, market cap: $1.15 billion. TTM P/E: 1.36, P/B: 0.78. No yield. Revenue TTM: $1.63 billion, EPS: $6.17. 52-week: $6.18 to $12.50; beta: 1.12. Target: $10.15.
Why It’s a Value Stock in 2026
Discretionary spending fears have repriced this niche player, but underlying demand for luxury persists. Low visibility equals deep discounts.
Risks
Economic downturns affecting luxury sales.
Outlook
Q1 FY26 earnings showed 12% sales growth; CEO appointment and asset sales signal transformation.
5. Gerdau (NYSE: GGB) – Brazilian Steel Leader
Company Overview
Gerdau, founded in 1901 in São Paulo, Brazil, is the largest long steel producer in the Americas. It supplies construction, industrial, and agricultural sectors with vertically integrated operations and iron ore mining.
Financial Analysis
Price: $4.03, market cap: $7.97 billion. TTM P/E: 14.40, forward P/E: 8.31, P/B: 0.77. Yield: 2.81%. Revenue: $69.71 billion, EPS: $0.28. 52-week: $2.27 to $4.05; beta: 0.91. Target: $4.40.
Why It’s a Value Stock in 2026
Currency volatility and EM risks keep multiples low, despite consistent cash flows and competitive edge.
Risks
Commodity cycles and Brazilian economic instability.
Outlook
Q3 2025 highlights strong performance; green steel investments position for 2026 growth.
6. Honda Motor (NYSE: HMC) – Global Manufacturing Powerhouse
Company Overview
Honda, headquartered in Tokyo, Japan, since 1946, dominates in motorcycles, autos, and power equipment. Segments include motorcycles, automobiles, financial services, and power products, with global distribution.
Financial Analysis
Price: $30.49, market cap: $39.56 billion. TTM P/E: 10.59, forward: 10.58, P/B: 0.53. Yield: 4.50%. Revenue: ¥21.52 trillion, EPS: $2.88. 52-week: $24.56 to $34.89; beta: 0.10. Target: $36.39.
Why It’s a Value Stock in 2026
Lack of EV hype undervalues its steady profits and conservative management.
Risks
Chip shortages and competition in EVs.
Outlook
2025 U.S. sales rose; EV battery plant buyout boosts 2026 prospects.
7. SK Telecom (NYSE: SKM) – Leading Wireless Carrier
Company Overview
SK Telecom, based in Seoul since 1984, is South Korea’s top wireless provider, offering mobile, broadband, and tech stakes. Segments: cellular, fixed-line, and other businesses like T-commerce.
Financial Analysis
Price: $20.58, market cap: $7.9 billion. TTM P/E: 20.38, forward: 10.64, P/B: 0.97. Yield: 6.88%. Revenue: 17.32 trillion KRW, EPS: $1.01. 52-week: $19.66 to $23.80; beta: 0.29. Target: $23.48.
Why It’s a Value Stock in 2026
Low growth perceptions compress multiples, despite reliable cash.
Risks
High capex and competition.
Outlook
AI model unveilings and quantum crypto position for tech-driven growth.
8. Jiayin Group (NASDAQ: JFIN) – Chinese Fintech Facilitator
Company Overview
Jiayin, founded in 2011 in Shanghai, connects borrowers with lenders via an asset-light platform, focusing on credit assessment and loan facilitation.
Financial Analysis
Price: $7.04, market cap: $375.72 million. TTM P/E: 0.70, P/B: 0.61. Yield: 11.36%. Revenue: $6.54 billion, EPS: $10.10. 52-week: $5.73 to $19.23; beta: 0.81.
Why It’s a Value Stock in 2026
Regulatory uncertainty crushed valuations, but ongoing operations imply viability.
Risks
Chinese regs and economic slowdowns.
Outlook
Q3 2025 overseas growth; EPS doubled, signaling recovery.
9. FinVolution Group (NYSE: FINV) – Fintech Platform Powerhouse
Company Overview
FinVolution, established in 2007 in Shanghai, facilitates consumer credit in China and internationally via platforms like PPDai and AdaKami.
Financial Analysis
Price: $5.14, market cap: $1.34 billion. TTM P/E: 3.29, P/B: 0.55. Yield: 5.53%. Revenue: $14.02 billion, EPS: $1.56. 52-week: $4.70 to $11.08; beta: 0.39. Target: $7.65.
Why It’s a Value Stock in 2026
Regulatory crackdowns discounted the stock excessively relative to earnings.
Risks
Geopolitical tensions and credit risks.
Outlook
Philippines expansion and dividend strength highlight bull case.
10. KT Corp. (NYSE: KT) – Telecom Stalwart
Company Overview
KT Corporation, a leading South Korean telecom provider, offers wireless, broadband, and digital services. It benefits from stable, recurring revenue in a mature market.
Financial Analysis
Based on available data and market trends, KT trades at low multiples with strong cash flows. (Note: Specific metrics from Yahoo Finance were insufficient; however, historical P/E around 10-15, P/B under 1, yield ~4%. Market cap ~$7-8 billion, revenue in trillions KRW.)
Why It’s a Value Stock in 2026
Capital-intensive nature keeps valuations compressed, despite dependable operations.
Risks
Market saturation and tech disruptions.
Outlook
As 5G and digital services expand, KT is positioned for steady gains in 2026.
Conclusion: Building a Resilient Portfolio with International Value Stocks
In 2026, these 10 international value stocks offer a compelling mix of undervaluation, dividends, and growth catalysts. From steel and energy to telecom and fintech, they provide diversification beyond U.S. borders. While risks exist, their low multiples and strong assets suggest significant upside. Monitor global trends, and consult advisors. Value investing rewards patience—position now for tomorrow’s gains.
FAQ: Top 10 International Value Stocks to Own 2026
What Are Value Stocks and Why Focus on International Ones?
Value stocks are equities trading below their intrinsic value, often identified by low price-to-earnings (P/E), price-to-book (P/B) ratios, or high dividend yields. They offer a margin of safety and potential upside as markets recognize their worth. In 2026, international value stocks provide diversification beyond U.S. markets, exposure to emerging economies like South Korea and China, and deeper discounts due to factors like currency volatility and geopolitical risks, making them attractive for long-term growth.
How Were the Top 10 International Value Stocks Selected for 2026?
The selection was based on a thorough analysis of global markets, focusing on companies with strong fundamentals, consistent cash flows, and undervalued metrics amid temporary headwinds like cyclical pessimism or regulatory pressures. Stocks like POSCO Holdings and Honda Motor were chosen for their global reach, resilient business models, and trading at discounts (e.g., P/B below 1). Criteria included low multiples, dividend potential, and alignment with 2026 trends such as energy transitions and tech recovery.
What Makes These Stocks Suitable for Investment in 2026?
These stocks are poised for rebound in 2026 due to stabilizing global economies, easing interest rates, and sector-specific catalysts like infrastructure booms in steel (e.g., Gerdau) and EV advancements (e.g., Honda). They offer high yields (e.g., SK Telecom at 6.88%) and low valuations, providing torque when demand improves. However, suitability depends on your risk tolerance—consult a financial advisor to align with your portfolio goals.
What Risks Should I Consider When Investing in These International Value Stocks?
Key risks include currency fluctuations, geopolitical tensions (e.g., in China for Jiayin Group), commodity price volatility (e.g., for Sasol), and regulatory changes. Emerging market exposure in Brazil or South Africa adds political instability. Diversify your holdings, monitor global events, and use tools like ETFs for broader exposure to mitigate these, as value stocks can underperform in prolonged downturns.
How Can I Start Investing in These Top 10 International Value Stocks?
Begin by opening a brokerage account with international trading capabilities, such as Fidelity or Interactive Brokers. Research each stock’s ticker (e.g., NYSE: PKX for POSCO) and use platforms like Yahoo Finance for real-time data. Consider dollar-cost averaging to buy in gradually, and explore ADRs for easier access. Always perform due diligence, set stop-loss orders, and diversify to balance risks in your 2026 investment strategy.
