5 Undervalued Stocks With Growing Book Value

Margins of safety and rising book value per share

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Dec 19, 2017
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According to GuruFocus’ All-In-One Screener, the following companies have grown their book value per share (BV/S) over the past decade.

BV/S is calculated as total equity minus preferred stock, divided by shares outstanding (EOP). Theoretically, it is what shareholders will receive if the company is liquidated. Total equity is a balance sheet item and equal to total assets minus total liabilities. Since the BV/S may not reflect the company’s true value, some investors check the tangible book value to confirm their investment ideas.

The BV/S of SK Telecom Co. Ltd. ADR (SKM) has grown by 5% over the past 10 years. The price-book (P/B) ratio is 1.2, and the price to tangible book value is 1.7.

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The company provides wireless telecommunications services. It has a market cap of $17.69 billion.

According to the discounted cash flow (DCF) calculator, the stock is undervalued and is trading with a margin of safety of 23% at $28.2. The stock price has been as high as $28.33 and as low as $20.44 in the past 52 weeks. It is 0.46% below its 52-week high and above 37.96% its 52-week low. The price-earnings (P/E) ratio is 8.25.

Sarah Ketterer (Trades, Portfolio) is the largest shareholder among the gurus with 0.46% of outstanding shares followed by NWQ Managers (Trades, Portfolio) with 0.3%, Jim Simons (Trades, Portfolio) with 0.1% and Jeremy Grantham (Trades, Portfolio) with 0.1%.

BanColombia SA ADR (CIB)’s BV/S has grown by 12% over the past decade. The P/B ratio is 1.3, and the price to tangible book value is 1.8. The financial institution in Panama has a market cap of $9.22 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 13% at $38.36. The stock price has been as high as $48.74 and as low as $35.53 in the past 52 weeks. It is 21.30% below its 52-week high and 7.97% above its 52-week low. The P/E ratio is 9.96.

The company’s largest shareholder among the gurus is Bernard Horn (Trades, Portfolio) with 0.25% of outstanding shares followed by Simons with 0.16% and Grantham with 0.09%.

The BV/S of Novo Nordisk A/S ADR (NVO) has grown by 7% over the past 10 years. The P/B ratio is 17.6, and the price to tangible book value is 18.6.

The health care company has a market cap of $127.35 billion.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 20% at $52.51. The stock price has been as high as $53.49 and as low as $32.83 in the past 52 weeks. It is 1.83% below its 52-week high and above 59.95% its 52-week low. The P/E ratio is 21.27.

Simons is the largest shareholder of the company among the gurus with 0.59% of outstanding shares followed by Ken Fisher (Trades, Portfolio) with 0.5%, Tom Gayner (Trades, Portfolio) with 0.04% and Steven Cohen (Trades, Portfolio) with 0.01%.

CGI Group Inc. Class A (GIB)’s BV/S has grown by 16% over the past decade. The P/B ratio is 3.1. The company offers information technology services and has a market cap of $15.52 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 15% at $53.97. The stock price has been as high as $54.64 and as low as $45.81 in the past 52 weeks. It is 1.23% below its 52-week high and 17.81% above its 52-week low. The P/E ratio is 20.

The company’s largest shareholder among the gurus is Ray Dalio (Trades, Portfolio) with 0.02% of outstanding shares followed by Grantham with 0.01% and Joel Greenblatt (Trades, Portfolio) with 0.01%.

The BV/S of Eagle Bancorp Inc. (EGBN) has grown by 15% over the past 10 years. The P/B ratio is 2.1, and the price to tangible book value is 2.4.

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The company is a part of the financial services domain. It has a market cap of $2.01 billion.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 34% at $58.9. The stock price has been as high as $69.80 and as low as $46.20 in the past 52 weeks. It is 15.62% below its 52-week high and above 27.49% its 52-week low. The P/E ratio is 18.29.

Fisher is the largest shareholder of the company among the gurus with 0.22% of outstanding shares followed by Simons with 0.08%.

Disclosure: I do not own any shares of any stocks mentioned in this article.