Five Cheap Stocks With Growing Book Value

Undervalued Stocks boosting their BV/S

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Jan 18, 2018
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According to the 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 Credicorp Ltd (BAP) has grown 17% over the past 10 years. The price-book (P/B) ratio is 3.1 and the price to tangible book value is 3.1.

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The financial services company in Peru has a market cap of $21.28 billion.

According to the discounted cash flow (DCF) calculator, the stock is undervalued and is trading with a 12% margin of safety at $225.49. The stock price has been as high as $226.89 and as low as $150.71 in the past 52 weeks. It is currently 0.62% below its 52-week high and above 49.6234.93% its 52-week low. The price-earnings (P/E) ratio is 17.56.

Ken Fisher (Trades, Portfolio) is the largest shareholders among the guru with 1.33% of outstanding shares followed by Frank Sands (Trades, Portfolio) with 0.28%, Jeremy Grantham (Trades, Portfolio) with 0.27%, Jim Simons (Trades, Portfolio) with 0.13% and Signature Select Canadian Fund (Trades, Portfolio) with 0.01%.

NetEase Inc ADR’s (NTES) BV/S has grown 31% over the past decade. The P/B ratio is 6.3 and the price to tangible book value is 6.4.

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The company operates in the internet content market and has a market cap of $42.58 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 21% margin of safety at $324.4. The stock price has been as high as $377.64 and as low as $233.50 in the past 52 weeks. It is 14.10% below its 52-week high and 38.93% above its 52-week low. The P/E ratio is 22.37.

The company’s largest shareholder among the gurus is Simons with 2.04% of outstanding shares followed by Fisher with 0.64%, Grantham with 0.25% and Manning & Napier Advisors, Inc with 0.12%.

The BV/S of Credit Acceptance Corp. (CACC) has grown 23% over the past 10 years. The P/B ratio is 4.8 and the price to tangible book value is 4.8.

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The consumer finance company has a market cap of $6.53 billion.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 38% at $338.29. The stock price has been as high as $344.21 and as low as $182.50 in the past 52 weeks. It is 1.72% below its 52-week high and above 85.36% its 52-week low. The P/E ratio is 17.54.

Ruane Cunniff (Trades, Portfolio) is the largest shareholder of the company among the gurus with 5.56% of outstanding shares followed by Grantham with 0.79% and Columbia Wanger (Trades, Portfolio) with 0.51%.

Biogen Inc. (BIIB)’s BV/S has grown by 11% over the past decade. The P/B ratio is 5.7 and the price to tangible book value is 15.5.

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The biopharmaceutical company has a market cap of $72.93 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 26% margin of safety at $344.87. The stock price has been as high as $348.84 and as low as $244.28 in the past 52 weeks. It is 1.14% below its 52-week high and 41.18% above its 52-week low. The P/E ratio is 21.12.

The company’s largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 7.19% of outstanding shares followed by Vanguard Health Care Fund (Trades, Portfolio) with 1.76% and Sands with 0.56%.

The BV/S of Amerco Inc. (UHAL) has grown 15% over the past 10 years. The P/B ratio is 2.5 and the price to tangible book value is 2.5.

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The provider of rental trucks to household movers has a market cap of $7.26 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 22% margin of safety at $370.07. The stock price has been as high as $400.00 and as low as $338.30 in the past 52 weeks. It is 7.71% below its 52-week high and above 9.39% its 52-week low. The P/E ratio is 22.26.

David Abrams (Trades, Portfolio) is the largest shareholder of the company among the gurus with 2.01% of outstanding shares followed by Robert Bruce (Trades, Portfolio) with 0.96% and David Einhorn (Trades, Portfolio) with 0.25%.

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