Cheap Stocks With Low P/E Ratios

Some of them are widely undervalued

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Mar 15, 2016
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The following stocks are trading with a very low P/E ratio. Most of them are greatly undervalued, according to the DCF calculator.

Visteon Corp. (VC) is trading with a P/E ratio of 1.49. According to the DCF calculator, the stock has a fair value of $16.48 while it is trading around $76.64. That means it is highly overpriced by 365%. The price has risen by 22% during the last 12 months and is now 37.0% below its 52-week high and 30.27% above its 52-week low.

The company is a supplier of automotive systems, modules and components to original equipment manufacturers (OEMs). The company's segments are Climate, Electronics and Interiors.

The company’s largest shareholder among the gurus is First Eagle Investment (Trades, Portfolio) with 1.69% of outstanding shares followed by Jim Simons (Trades, Portfolio) with 1.09%, Joel Greenblatt (Trades, Portfolio) with 0.79%, Private Capital (Trades, Portfolio) with 0.78%, Third Avenue Management (Trades, Portfolio) with 0.32%, Steven Cohen (Trades, Portfolio) with 0.29% and Mario Gabelli (Trades, Portfolio) with 0.27%.

Advanced Accelerator Applications SA. (AAAP) is trading with a P/E ratio of 2.58. According to the DCF calculator, the stock has a fair value of $136.23, while it is trading around $32.56. That means it is undervalued with a margin of safety of 76%. The price has risen by 33% during the last 12 months and is now 8.56% below its 52-week high and 80.89% above its 52-week low.

It is a radiopharmaceutical company that develops, produces and commercializes molecular nuclear medicine diagnostic and therapeutic products.

Korea Electric Power Corp. (KEP) is trading with a P/E ratio of 2.75. According to the DCF calculator, the stock has a fair value of $94.78, while it is trading around $24.35. That means it is undervalued with a margin of safety of 74%. The price has risen by 28% during the last 12 months and is now 1.18% below its 52-week high and 29.94% above its 52-week low.

The company is engaged in the generation, transmission and distribution of electricity and development of electric power resources in the Republic of Korea.

Donald Smith (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 0.25% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.02% and Sarah Ketterer (Trades, Portfolio) with 0.02%

MGIC Investment Corp. (MTG) is trading with a P/E ratio of 2.90. According to the DCF calculator, the stock has a fair value of $26.97 while it is trading around $7.53. That means it is undervalued with a margin of safety of 72%.The price has dropped by 23% during the last 12 months and is now 35.75% below its 52-week high and 33.75% above its 52-week low.

The company is a holding company and through wholly owned subsidiaries, it provides private mortgage insurance and ancillary services.

The company’s largest shareholder among the gurus is Howard Marks (Trades, Portfolio) with 2.66% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.93%, John Griffin (Trades, Portfolio) with 0.87%, John Paulson (Trades, Portfolio) with 0.8% and Chuck Royce (Trades, Portfolio) with 0.14%.

USG Corp. (USG) is trading with a P/E ratio of 3.29. According to the DCF calculator, the stock has a fair value of $72.02, while it is trading around $22.12. That means it is undervalued with a margin of safety of 69%. The price has dropped by 17% during the last 12 months and is now 32.73% below its 52-week high and 39.56% above its 52-week low.

The company is a manufacturer and distributor of building materials. It produces products for use in new residential, new nonresidential and residential and nonresidential repair and remodel construction as well as products used in certain industrial processes.

Warren Buffett (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 26.77% of outstanding shares followed by Joel Greenblatt (Trades, Portfolio) with 1.45%, Steven Cohen (Trades, Portfolio) with 0.24% and Prem Watsa (Trades, Portfolio) with 0.02%.

Euronav NVÂ (EURN) is trading with a P/E ratio of 4.54. According to the DCF calculator, the stock has a fair value of $23.76, while it is trading at about $10.32. That means it is undervalued with a margin of safety of 57%. The price has dropped by 16% during the last 12 months and is now 37.98% below its 52-week high and 10.02% above its 52-week low.

The company is a vertically integrated owner, operator and manager providing shipping services in addition to the carriage of crude oil on its fleet of modern tankers. Its fleet comprises Algarve, Antarctica, Cap Charles and Cap Felix.

Steven Cohen (Trades, Portfolio) is largest shareholder of the company among the gurus, with 1.3% of outstanding shares, Donald Smith (Trades, Portfolio) with 0.49% and George Soros (Trades, Portfolio) with 0.25%.

Sanmina Corp. (SANM) is trading with a P/E ratio of 4.86. According to the DCF calculator, the stock has a fair value of $48.8, while it is trading around $22.14. That means it is undervalued with a margin of safety of 55%. The price has dropped by 8% during the last 12 months and is now 13.65% below its 52-week high and 35.74% above its 52-week low.

The company is an integrated electronics manufacturing services, or EMS. It provides these services to equipment manufacturers, or OEMs, in the communications, enterprise computing and storage, multimedia, industrial and semiconductor capital equipment, defense and aerospace, medical, renewable energy and automotive industries.

Donald Smith (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 9.09% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) with 4.97%, Chuck Royce (Trades, Portfolio) with 0.94%, Jim Simons (Trades, Portfolio) with 0.73%, Jeremy Grantham (Trades, Portfolio) with 0.22%, James Barrow (Trades, Portfolio) with 0.17% and Paul Tudor Jones (Trades, Portfolio) with 0.05%.

American Axle & Mfg Holdings Inc. (AXL) is trading with a P/E ratio of 4.98. According to the DCF calculator, the stock has a fair value of $32.53, while it is trading around $15.03. That means it is undervalued with a margin of safety of 54%. The price has dropped by 40% during the last 12 months and is now 42.66% below its 52-week high and 31.38% above its 52-week low.

The company with its subsidiaries is a Tier I supplier to the automotive industry. It manufactures, engineers, designs and validates driveline and drivetrain systems and related components, and chassis modules for light trucks, sport utility vehicles, passenger cars, crossover vehicles and commercial vehicles.

James Barrow (Trades, Portfolio) is the largest shareholder of the company among the gurus with 4.32% of outstanding shares, followed by RS Investment Management (Trades, Portfolio) with 2.28%, Joel Greenblatt (Trades, Portfolio) with 2.2%, John Keeley (Trades, Portfolio) with 1.53% and David Dreman (Trades, Portfolio) with 0.8%.