6 Stocks Expanding Their Book Value

BlackRock, Bank Bradesco on the list

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Apr 30, 2019
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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. Theoretically, it is what shareholders will receive if a 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 BlackRock Inc. (BLK) has grown 6.10% over the last 10 years. The price-book ratio is 2.35 and the price to tangible book value is 2.25.

The provider of investment management services has a $74.60 billion market cap.

According to the discounted cash flow calculator, the stock is undervalued with a 21% margin of safety at $478.98. The share price has been as high as $557 and as low as $360.79 in the last 52 weeks. As of Tuesday, the stock was trading 14.01% below its 52-week high and 32.76% above its 52-week low. The price-earnings ratio is 18.04.

Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder with 0.14% of outstanding shares, followed by Tom Gayner (Trades, Portfolio)’s Markel Corp with 0.12%, Ken Fisher (Trades, Portfolio) with 0.09% and Joel Greenblatt (Trades, Portfolio)’s Gotham Asset Management with 0.03%.

Bank Bradesco SA’s (BBD) BV/S has grown 21.8% over the past decade. The price-book ratio is 2.0 and the price to tangible book value is 2.30.

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The bank has a market cap of $68.66 billion.

The share price has been as high as $10.46 and as low as $5.41 in the last 52 weeks. As of Tuesday, the stock was trading 12.83% below its 52-week high and 68.50% above its 52-week low. The price-earnings ratio is 15.74.

With 0.53% of outstanding shares, Fisher is the company's largest guru shareholder, followed by Ken Heebner (Trades, Portfolio)’s Capital Growth Management with 0.21% and Pioneer Investments (Trades, Portfolio) with 0.03%.

PNC Financial Services Group Inc.’s (PNC) BV/S has grown 6.60% over the last 10 years. The price-book ratio is 1.28 and the price to tangible book value is 1.65.

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The financial services company has a market cap of $12.49 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 31% margin of safety at $137. The share price has been as high as $152.29 and as low as $108.45 in the last 52 weeks. As of Tuesday, the stock was trading 10.64% below its 52-week high and 25.49% above its 52-week low. The price-earnings ratio is 12.49.

With 1.82% of outstanding shares, Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway is the company's largest guru shareholder, followed by T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.36% and Diamond Hill Capital (Trades, Portfolio) with 0.26%.

The BV/S of Schlumberger Ltd. (SLB) has grown 6.0% over the last 10 years. The price-book ratio and the price to tangible book value are 1.68 and 23.82.

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The provider of the products and services to the oil and gas industry has a market cap of $60.16 billion.

The share price has been as high as $75.43 and as low as $34.99 in the last 52 weeks. The stock is currently trading 42.42% below its 52-week high and 24.12% above its 52-week low. The price-earnings ratio is 29.75.

With 2.99% of outstanding shares, Dodge & Cox the company's largest guru shareholder, followed by First Eagle Investment (Trades, Portfolio) with 2.02%, Barrow, Hanley, Mewhinney & Strauss with 1.38% and Fisher with 0.61%.

Biogen Inc.’s (BIIB) BV/S has grown 13.60% over the past decade. The price-book ratio is 3.48 and the price to tangible book value is 10.73.

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The drug manufacturer has a market cap of $44.48 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 62% margin of safety at $229.38. The share price has been as high as $338.67 and as low as $216.12 in the last 52 weeks. The stock is currently trading 40.98% below its 52-week high and 6.14% above its 52-week low. The price-earnings ratio is 10.61.

PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder with 7.48% of outstanding shares, followed by Vanguard Health Care Fund (Trades, Portfolio) with 1.88% and Jim Simons' (Trades, Portfolio) Renaissance Technologies with 0.52%.

The BV/S of Activision Blizzard Inc. (ATVI) has grown 9.90% over the last 10 years. The price-book ratio and the price to tangible book value are 3.25 and 46.54.

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The video game publisher has a market cap of $37.07 billion.

According to the DCF calculator, the stock is undervalued with a 12% margin of safety at $48.4. The share price has been as high as $84.68 and as low as $39.85 in the last 52 weeks. The stock is currently trading 42.84% below its 52-week high and 21.46% above its 52-week low. The price-earnings ratio is 20.60.

With 2.05% of outstanding shares, Steve Mandel’s Lone Pine Capital is the company's largest guru shareholder, followed by Philippe Laffont (Trades, Portfolio) with 1.18%, PRIMECAP Management (Trades, Portfolio) with 1.07% and the Sands Capital Management’s Frank Sands (Trades, Portfolio) with 0.80%.

Disclosure: I do not own any stocks mentioned.

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