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Morning Coffee: Widely Held Guru Stocks Near Historical Low P/B

Chris Mydlo

Chris Mydlo

32 followers

This morning we are going to take a look at stocks that are widely held by the gurus and trading near historical low price-to-book (P/B) ratios:

IntercontinentalExchange Group Inc. (ICE) is trading at its 10-year low P/B ratio of 1.70. The company operates a network of regulated exchanges and clearing houses for financial and commodity markets. It is held by 23 gurus we follow.

Market Cap: 21.71 billion, P/E: 47.20

Business Predictability: 2/5, Financial Strength: 5/10, Profitability & Growth: 7/10

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SAP AG (SAP) is trading at a low P/B ratio of 4.00, near its 10-year low of 3.76. The company provides enterprise application software and software-related services worldwide. It is held by 15 gurus we follow.

Market Cap: 90.16 billion, P/E: 19.40

Business Predictability: 5/5, Financial Strength: 9/10, Profitability & Growth: 9/10

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Waters Corp (WAT) is trading at a low P/B ratio of 5.00, near its 10-year low of 4.61. The company operates as an analytical instrument manufacturer in the United States and internationally. It is held by 13 gurus we follow.

Market Cap: 8.66 billion, P/E: 19.60

Business Predictability: 4/5, Financial Strength: 8/10, Profitability & Growth: 8/10

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Bio-Rad Laboratories (BIO) is trading at a low P/B ratio of 1.60, near its 10-year low of 1.45. The company manufactures and supplies products and systems used to separate complex chemical and biological materials, as well as identify, analyze, and purify their component for life science research, healthcare, analytical chemistry and other markets. It is held by 13 gurus we follow.

Market Cap: 3.49 billion, P/E: 54.50

Business Predictability: 3/5, Financial Strength: 6/10, Profitability & Growth: 6/10

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Altera Corp (ALTR) is trading at a low P/B ratio of 3.00, near its 10-year low of 2.82. The semiconductor company, designs, manufactures, and sells programmable logic devices, HardCopy application-specific integrated circuit devices, power system-on-chip devices, pre-defined design building blocks, and proprietary development software. It is held by nine gurus we follow.

Market Cap: 10.27 billion, P/E: 24.10

Business Predictability: 3/5, Financial Strength: 8/10, Profitability & Growth: 8/10

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CNOOC Ltd. (CEO) is trading at a low P/B ratio of 1.30, near its 10-year low of 1.18. The company explores for, develops, produces and sells crude oil, natural gas and other petroleum products. It is held by nine gurus we follow.

Market Cap: 76.26 billion, P/E: 8.10

Business Predictability: 5/5, Financial Strength: 7/10, Profitability & Growth: 9/10

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Meridian Bioscience Inc. (VIVO) is trading at a low P/B ratio of 5.20, near its 10-year low of 4.68. The life science company develops, manufactures, sells, and distributes diagnostic test kits primarily for gastrointestinal, viral, respiratory, parasitic infectious diseases. It is held by nine gurus we follow.

Market Cap: 829.9 million, P/E: 22.70

Business Predictability: 3/5, Financial Strength: 10/10, Profitability & Growth: 8/10

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For the complete list of stocks are traded at close to their historical low P/B ratios, go to: GuruFocus Value Strategies of Stocks That Are Traded at Historical Low P/B

You can also follow are low P/B portfolio at GuruFocus. It has outperformed the S&P 500 by 27.38 percent since inception in 2010. To view the portfolio, go to: Top 25 Historical Low P/B Ratio Companies


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Comments

brendonstewart
Brendonstewart premium member - 4 months ago

I'm a little confused about the takeaway that we are supposed to draw from these companies. It looks like in all cases the inverse relationship between P/B and price is driven by disproprortionate growth in book value relative to price. A speculative investor would have made a lot of money investing in these companies 10 years ago, but what conclusions should today's value investor draw from the data above?

mungermice
Mungermice - 4 months ago

maybe for historical purposes in most cases, maybe for a opportunity in one of them, but i'm also confused with the extraction of P/B beside all time highs and relative high P/E.

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