DCF Calculator To Show Undervalued Stocks

Wide margins of safety are hallmarks of these companies

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May 09, 2016
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The following stocks are trading with wide margins of safety, according to the DCF calculator, and some of them have very low P/E ratios. GuruFocus' All-in-One Screener can be used to find similar stocks.

Ever-Glory International Group Inc. (EVK) has a market cap of $27.21 million and a business predictability of 4/5 stars. The stock has a price of $1.86 with a P/E ratio of 2.04 and, according to the DCF calculator, is trading with a margin of safety of 21.81% since its fair value is $21.81. During the last 12 months the price of the stock has dropped by 68% and is now 69.85% below its 52-week high.

The company is an apparel supply chain management provider, manufacturer, distributor and retailer based in the People's Republic of China, with customers in China, the U.S., Europe and Japan. Its business is focused on middle to high-end casual wear, outerwear and sportswear brands for men, women and children.

Its profitability and growth is rated 8/10 with ROE of 17.68% and ROA of 6.19% that are ranked higher than 64% of other companies in the Global Apparel Manufacturing industry.

World Acceptance Corp. (WRLD) has a market cap of $374.78 million and a business predictability of 5/5 stars. The stock has a price of $42 with a P/E ratio of 3.66 and, according to the DCF calculator, is trading with a margin of safety of 87% since its fair value is $340.77. During the last 12 months the price of the stock has dropped by 16% and is now 54.37% below its 52-week high.

The company provides small-loan consumer finance companies, offering short-term small installment loans, medium-term larger installment loans, related credit insurance and ancillary products and services to individuals.

Its profitability and growth is rated 9/10.

Universal Insurance Holdings Inc. (UVE) has a market cap of $625.66 million. The stock has a price of $17.82 with a P/E ratio of 5.75 and, according to the DCF calculator, is trading with a margin of safety of 79% since its fair value is $82.35. During the last 12 months the price of the stock has dropped by 37% and is now 54.47% below its 52-week high.

The company is a vertically integrated insurance holding company, which, through its various subsidiaries, covers substantially all aspects of insurance underwriting, distribution, claims processing and exposure management. Universal Property & Casualty Insurance Company, a wholly owned subsidiary of UIH, is a writer of homeowners' insurance in Florida and is now fully licensed and has commenced its operations in Georgia, Hawaii, North Carolina and South Carolina.

Its profitability and growth is rated 9/10 with ROE of 41.81% and ROA of 10.65% that are ranked higher than 95% of other companies in the Global Insurance - Property & Casualty industry.

Chuck Royce (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.29% of outstanding shares followed by Paul Tudor Jones (Trades, Portfolio) with 0.16% and Jeremy Grantham (Trades, Portfolio) with 0.1%.

Energy Company of Minas Gerais. (CIG.C) has a market cap of $2.23 billion and a business predictability of 3/5 stars. The stock has a price of $1.81 with a forward P/E ratio of 4.12 and, according to the DCF calculator, is trading with a margin of safety of 77% since its fair value is $7.63. During the last 12 months the price of the stock has dropped by 65% and is now 67.82% below its 52-week high.

The company is engaged in the electric power transmission business, which consists of transporting electric power from the facilities where it is generated to the distribution networks for delivery to end users.

Its profitability and growth is rated 9/10 with ROE of 17.53% and ROA of 6.09% that are ranked higher than 79% of other companies in the Global Utilities - Diversified industry.

Viacom Inc. (VIAB) has a market cap of $16.31 billion. The stock has a price of $41.32 with a P/E ratio of 7.93 and, according to the DCF calculator, is trading with a margin of safety of 74% since its fair value is $147.57. During the last 12 months the price of the stock has dropped by 39% and is now 40.91% below its 52-week high.

The company is an entertainment content company that connects with audiences through television content across television, motion picture, online and mobile platforms in more than 165 countries and territories.

Its profitability and growth is rated 9/10 with ROE of 68.31% and ROA of 10.03% that are ranked higher than 85% of other companies in the Global Media - Diversified industry.

The largest shareholder among the gurus is Donald Yacktman (Trades, Portfolio) with 1.29% of outstanding shares followed by Yacktman Fund (Trades, Portfolio) with 0.91%, NWQ Managers (Trades, Portfolio) with 0.72%, John Rogers (Trades, Portfolio) with 0.49%, Murray Stahl (Trades, Portfolio) with 0.23% and Ray Dalio (Trades, Portfolio) with 0.17%.

Waddell & Reed Financial Inc. (WDR) has a market cap of $1.55 billion and a business predictability of 5/5 stars. The stock has a price of $19.35 with a P/E ratio of 7.36 and, according to the DCF calculator, is trading with a margin of safety of 71%, since its fair value is $65.89. During the last 12 months the price of the stock has dropped by 59% and is now 62.05% below its 52-week high.

The company operates as a mutual fund and asset management firm. It provides investment management, investment product underwriting and distribution and shareholder services administration to mutual funds and institutional and separately managed accounts.

Its profitability and growth is rated 5/10 with ROE of 25.69% and ROA of 14.59% that are ranked higher than 91% of other companies in the Global Asset Management industry.

Ken Fisher (Trades, Portfolio) is the company's largest shareholder among the gurus with 2.34% of outstanding shares followed by Royce with 1.05%, Joel Greenblatt (Trades, Portfolio) with 0.5%, Mario Gabelli (Trades, Portfolio) with 0.48%, Jim Simons (Trades, Portfolio) with 0.43% and Jones with 0.04%.

Energy Company of Minas Gerais. (CIG) has a market cap of $2.15 billion and a business predictability of 3/5 stars. The stock has a price of $1.72 with a P/E ratio of 4.20 and, according to the DCF calculator, is trading with a margin of safety of 78% since its fair value is $5.99 During the last 12 months the price of the stock has dropped by 67% and is now 67.10% below its 52-week high.

The company operates as a mutual fund and asset management firm. It provides investment management, investment product underwriting and distribution and shareholder services administration to mutual funds and institutional and separately managed accounts.

Its profitability and growth is rated 5/10 with ROE of 17.53% and ROA of 6.09% that are ranked higher than 79% of other companies in the Global Utilities - Diversified industry.

The largest shareholder among the gurus is Grantham with 1.32% of outstanding shares.

Atwood Oceanics Inc. (ATW) has a market cap of $746.14 million and a business predictability of 3.5/5 stars. The stock has a price of $11.52 with a P/E ratio of 1.34 and, according to the DCF calculator, is trading with a margin of safety of 94% since its fair value is $186.18. During the last 12 months the price of the stock has dropped by 75% and is now 67.69% below its 52-week high.

It is headquartered in Houston with support offices in Australia, Malaysia, Singapore and the United Kingdom. Its profitability and growth is rated 10/10 with ROE of 15.12% and ROA of 9.10% that is ranked higher than 90% of other companies in the Global Oil & Gas Drilling industry.

The largest shareholder among the gurus is Arnold Van Den Berg (Trades, Portfolio) with 1.32% of outstanding shares followed by David Dreman (Trades, Portfolio) with 0.4%, Simons with 0.26%, Barrow, Hanley, Mewhinney & Strauss with 0.18% and Jones with 0.08%.

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