Undervalued Stocks With Low PE

Many of the companies have a margin of safety higher than 50%

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Mar 24, 2016
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The following stocks are trading with a very low P/E ratio. Most of the companies are greatly undervalued according to the DCF calculator.

Goldman Sachs Group Inc. (GSPRN) is trading with a P/E ratio of 2.15. According to the DCF calculator, the stock has a fair value of $126.38, while it is trading at about $26.02. That means it is undervalued with a margin of safety of 80%. The price has risen by 4% during the last 12 months.

Korea Electric Power Corp. (KEP) is trading with a P/E ratio of 2.84. According to the DCF calculator, the stock has a fair value of $94.78, while it is trading at about $25.14. That means it is undervalued with a margin of safety of 73%. The price has risen by 23% during the last 12 months and is now 2.10% below its 52-week high and 33.23% above its 52-week low.

The company is engaged in the generation, transmission and distribution of electricity and development of electric power resources in Korea. The company also provides power plant construction services.

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

Trinity Industries Inc. (TRN) is trading with a P/E ratio of 3.59. According to the DCF calculator, the stock has a fair value of $55.97, while it is trading at about $18.33. That means it is undervalued with a margin of safety of 67%. The price has dropped by 49% during the last 12 months and is now 50.66% below its 52-week high and 22.69% above its 52-week low.

The company owns businesses that provide products and services to the industrial, energy, transportation, and construction sectors.

The company’s largest shareholder among the gurus is Joel Greenblatt (Trades, Portfolio) with 1.27% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 0.9%, Chuck Royce (Trades, Portfolio) with 0.42%, Mario Gabelli (Trades, Portfolio) with 0.08%, John Buckingham (Trades, Portfolio) with 0.08% and Paul Tudor Jones (Trades, Portfolio) with 0.02%.

Pampa Energia SAÂ (PAM) is trading with a P/E ratio of 3.69. According to the DCF calculator, the stock has a fair value of $59.29, while it is trading at about $20.42. That means it is undervalued with a margin of safety of 66%. The price has risen by 11% during the last 12 months and is now 24% below its 52-week high and 63.23% above its 52-week low.

The company is an integrated electricity company that is engaged in electricity generation, transmission, distribution and oil and gas in Argentina.

Jim Simons (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.09% of outstanding shares.

Administradora de Fondos de Pensiones-Provida (PVD) is trading with a P/E ratio of 3.76. The price has not changed during the last 12 months.

It is a private pension fund administrator. Its activities include investment and collection of its clients' contributions, management of individual capitalization accounts, provision of life and disability benefits and provision of senior pension, provide a senior pension for participants.

Rite Aid Corp. (RAD) is trading with a P/E ratio of 4.19. According to the DCF calculator, the stock has a fair value of $20.44, while it is trading at about $8. That means it is undervalued with a margin of safety of 61%. The price has dropped by 8% during the last 12 months and is now 15.52% below its 52-week high and 36.05% above its 52-week low.

The company sells prescription drugs and an assortment of other merchandise, which it calls "front end" products. Front end products include over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise and numerous other convenience products.

Eric Mindich (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.78% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.54%, Jeremy Grantham (Trades, Portfolio) with 0.53%, Pioneer Investments (Trades, Portfolio) with 0.09%, George Soros (Trades, Portfolio) with 0.08%, Mario Gabelli (Trades, Portfolio) with 0.07% and Joel Greenblatt (Trades, Portfolio) with 0.02%.

Transocean Ltd. (RIG) is trading with a P/E ratio of 4.33. According to the DCF calculator, the stock has a fair value of $22.9, while it is trading at about $9.27. That means it is undervalued with a margin of safety of 60%. The price has dropped by 37% during the last 12 months and is now 57.67% below its 52-week high and 20.86% above its 52-week low.

The company together with its subsidiaries is an international provider of offshore contract drilling services for oil and gas wells.

Carl Icahn (Trades, Portfolio) is the largest shareholder of the company among the gurus with 5.9% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 4.9%, Jim Simons (Trades, Portfolio) with 0.24%, Chris Davis (Trades, Portfolio) with 0.12%, Jeremy Grantham (Trades, Portfolio) with 0.01%, Paul Tudor Jones (Trades, Portfolio) with 0.01%, Murray Stahl (Trades, Portfolio) with 0.01% and Mark Hillman (Trades, Portfolio) with 0.01%.

HD Supply Holdings Inc. (HDS) is trading with a P/E ratio of 4.35. According to the DCF calculator, the stock has a fair value of $71.17, while it is trading at about $231.81. That means it is undervalued with a margin of safety of 55%. The price has risen by 3% during the last 12 months and is now 36.58% below its 52-week high and 49.62% above its 52-week low.

The company provides an array of products and value-add services to the infrastructure and power, MRO, and specialty construction sectors in the U.S. and Canada.

The company’s largest shareholder among the gurus is John Griffin (Trades, Portfolio) with 4.13% of outstanding shares, followed by Lee Ainslie (Trades, Portfolio) with 2.09%, David Tepper (Trades, Portfolio) with 1.6%, Steven Cohen (Trades, Portfolio) with 0.85%, Joel Greenblatt (Trades, Portfolio) with 0.17% and Pioneer Investments (Trades, Portfolio) with 0.14%.