According to the GuruFocus All-In-One Screener, a Premium feature, the following companies were trading with low price-sales ratios as of March 3.
Saratoga Investment
Saratoga Investment Corp. (SAR, Financial) was trading around $24.5 per share with a price-sales ratio of 4.96 and a price-earnings ratio of 5.8.
The specialty finance company has a market cap of $280 million. The stock has risen at an annualized rate of 9.9% over the past decade.
The discounted cash flow calculator gives the company a fair value of $46.12, suggesting it is undervalued with a 45% margin of safety, while the Peter Lynch value gives the stock a fair price of $64.65.
Agilent Technologies
As of Tuesday, Agilent Technologies Inc. (A, Financial) was trading around $81 per share with a price-sales ratio of 4.92 and a price-earnings ratio of 33.46.
The life sciences and diagnostics company has a market cap of $25.34 billion. The stock has climbed at an annualized rate of 14.04% over the last 10 years.
The DCF calculator gives the stock a fair value of $25.9, suggesting it is overpriced by 212%. The Peter Lynch fair value gives the stock a fair price of $36.
With 1.41% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Bill Ackman (Trades, Portfolio) with 1.05%, Pioneer Investments (Trades, Portfolio) with 0.85% and the Vanguard Health Care Fund (Trades, Portfolio) with 0.38%.
VMware
VMware Inc. (VMW, Financial) was trading around $121 on Tuesday with a price-sales ratio of 4.95 and a price-earnings ratio of 7.81.
The manufacturer of virtual machines for data center servers and computer desktops has a market cap of $50.51 billion. The stock has risen at an annualized rate of 11.29% over the past decade.
The DCF calculator gives the company a fair value of $435, suggesting it is undervalued with a 72% margin of safety. The Peter Lynch earnings line gives the stock a fair price of $229.
The company's largest guru shareholder is Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.49% of outstanding shares, followed by PRIMECAP Management with 0.29% and Pioneer Investments with 0.02%.
Automatic Data Processing
Automatic Data Processing Inc. (ADP, Financial) was trading around $159 on Tuesday with a price-sales ratio of 4.83 and a price-earnings ratio of 27.92.
The company provides human resources management software. It has a market cap of $69.45 billion. The stock has increased at an annualized rate of 17.48% over the last 10 years.
The DCF calculator gives the company a fair value of $69.69, suggesting it is overpriced by 125%. The Peter Lynch fair value gives the stock a fair price of $84.9.
With 0.33% of outstanding shares, Al Gore (Trades, Portfolio) is the company's largest guru shareholder, followed by Bill Nygren (Trades, Portfolio) with 0.25% and Pioneer Investments with 0.21%
West Bancorp
West Bancorp Inc. (WTBA, Financial) was trading around $20.91 on Tuesday with a price-sales ratio of 4.81 and a price-earnings ratio of 11.83.
The bank has a market cap of $344 million. The stock has risen at an annualized rate of 17.52% over the past decade.
The DCF calculator gives the company a fair value of $18.73, suggesting it is not overpriced. The Peter Lynch earnings line gives the stock a fair price of $26.25.
The company's largest guru shareholder is Simons' firm with 2.4% of outstanding shares, followed by Hotchkis & Wiley with 0.46% and Jeremy Grantham (Trades, Portfolio) with 0.15%.
Lamar Advertising
Lamar Advertising Co. (LAMR, Financial) was trading around $84.73 on Tuesday with a price-sales ratio of 4.88 and a price-earnings ratio of 22.59.
The advertising company has a market cap of $8.47 billion. The stock has climbed at an annualized rate of 12.54% over the last 10 years.
The DCF calculator gives the company a fair value of $39.6, suggesting it is overpriced by 110%. The Peter Lynch fair value gives the stock a fair price of $55.5.
With 1.88% of outstanding shares, Simons' firm is the company's largest guru shareholder, followed by Chuck Akre (Trades, Portfolio) with 0.05% and Ray Dalio (Trades, Portfolio)’s Bridgewater Associates with 0.02%.
Disclosure: I do not own any stocks mentioned.
Read more here:
- 5 Stocks Near 52-Week Highs
- 6 Companies Boosting Earnings
- Bill Gates' Foundation Sells Berkshire, Buys 2 Funds
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
