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How Many Stocks Can Pass GuruFocus Value Screeners? - Feb. 3, 2014
Posted by: Vera Yuan (IP Logged)
Date: February 7, 2014 11:55AM
GuruFocus provides value screeners for our Premium members to generate ideas with proven value strategies. GuruFocus All-In-One Screener also allows subscribers to create their own value screeners with more than 150 filters. Here we want to see how many companies pass different stock screeners in different regions and which companies can pass the most of the screeners. The November and December of 2013 stock lists can be seen here and here separately.
The following are the number of companies that pass the screeners:
Note: Peter Lynch Screener and Walter Schloss Screener can be found through All-in-One Guru Screener. The complete stock list can be seen by clicking the link.
We can clearly see that Asian markets are where we can find most of Ben Graham Net-Nets and Walter Schloss picks. This is not surprising as emerging markets lost their favor. Chinese stock markets are traded at five-year lows.
On Nov 4, 2013, chairman of Oaktree Capital Group LLC, Howard Marks, said in Shanghai that China’s equities are “tremendous bargains” while U.S. stocks are “fairly to fully valued.” He believed just as investors were too optimistic to China’s market three years ago, now they were too pessimistic. Right now the Shanghai Composite's price-to-book ratio is about half of 2010's level and the P/E multiple is 42% lower. “We are investing in Chinese equities along with emerging markets,” Marks said. “Investors have lost all confidence in China.” Our screeners indicate that compared with last month, a lot more bargains can be found in Asia now.
The following are the U.S. stocks that passed at least three screeners as of Feb. 3, 2014:
The following are the Canadian stocks that passed at least two screeners as of Feb. 3, 2014:
The following are the UK/Ireland’s stocks that passed at least three screeners as of Feb. 3, 2014:
The following are the European stocks that passed at least three screeners as of Feb. 3, 2014:
The following are the Asian stocks that passed at least three screeners as of Feb. 3, 2014:
The following are the Oceania stocks that passed at least two screeners as of Feb. 3, 2014:
The following is a brief summary of different screeners.
Benjamin Graham defined the net-net value as Cash and short-term investments + (0.75 * accounts receivable) + (0.5 * inventory) - total liabilities. He looked for companies whose market values were less than two-thirds of that net-net value. The rules of the screener are as follows:
GuruFocus applied the discounted cash flow and discounted earnings to the top ranked predictable companies, and calculated the intrinsic values of the these companies. These are the companies that appeared to be undervalued. The intrinsic value of the companies is calculated with Future Earnings at Growth Stage + Terminal Value.
The Buffett-Munger Screener can be used to find companies with high-quality business at undervalued or fair-valued prices:
These companies have been very predictable in their business operations. They are sold at close to historical low price/sales ratios. Their sales and earnings have consistently grown for at least the past decade. However, the price/sales (P/S) ratio of each of these companies is less than 30% above its historical low.
These are the predictable companies that are sold at close to historical low price/book (P/B) ratios. Their sales and earnings have consistently grown for at least the past decade. However the price/book (P/B) ratios of these companies are less than 30% above their historical lows.
X1 = working capital/total assets,
X2 = retained earnings/total assets,
X3 = earnings before interest and taxes/total assets,
X4 = market value equity/book value of total liabilities,
X5 = sales/total assets.
Both Peter Lynch Screener and Walter Schloss Screener can be found through All-in-One Guru Screener. GuruFocus premium membership is needed to access the details of the portfolios and screeners. We also publish a monthly Buffett-Munger newsletter which features the picks from Buffett-Munger Screener. If you are a premium member, you can download this for free. If you are not a Premium Member, we invite you for a 7-day Free Trial.
GuruFocus Global Membership allows you to screen for bargains in Global Markets. We now cover more than 50,000 stocks in 32 countries across five regions. Take a 7-day Free Trial.
Stocks Discussed: SPY, DJI, QQQ,