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Tiziano Frateschi
Tiziano Frateschi
Articles (2648)  | Author's Website |

6 Financial Companies Boosting Book Value

Aflac makes the list

According to the GuruFocus All-in-One Screener, a Premium feature, the following companies have grown their book value per share over the past decade through April 13.

Book value per share 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 is equal to total assets minus total liabilities.

Since the book value per share may not reflect the company’s true value, some investors check the tangible book value to confirm their investment ideas.

Arch Capital Group

The book value per share of Arch Capital Group Ltd. (ACGL) has grown 10.80% over the past 10 years. The price-book ratio is 1.2 and the price-tangible book ratio is 1.29.

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The Bermuda-based insurance company has a market cap of $12.65 billion and an enterprise value of $14.87 billion.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 27.94% margin of safety at $31. The share price has been as high as $48.32 and as low as $22.54 in the last 52 weeks. As of Monday, the stock was trading 35.84% below its 52-week high and 37.53% above its 52-week low. The price-earnings ratio is 8.01.

With 5.38% of outstanding shares, Ron Baron (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.75% and Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 0.09%.

SEI Investments

SEI Investments Co.'s (SEIC) book value per share has grown 8.6% over the past decade. The price-book ratio is 4.39 and the price-tangible book ratio is 5.65.

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The provider of investment solutions has a market cap of $7.6 billion and an enterprise value of $6.81 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 14.92% margin of safety at $50.93. The share price has been as high as $69.61 and as low as $35.41 in the last 52 weeks. As of Monday, the stock was trading 26.84% below its 52-week high and 43.83% above its 52-week low. The price-earnings ratio is 15.67.

With 0.57% of outstanding shares, Simons’ firm is the company's largest guru shareholder, followed by Tom Gayner (Trades, Portfolio) with 0.26% and Chuck Royce (Trades, Portfolio) with 0.25%.

Employers Holding

Employers Holding Inc.'s (EIG) book value per share has grown 12% over the past decade. The price-book ratio is 0.99 and the price-tangible book ratio is 1.04.

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The provider of insurance to workers and small business companies has a market cap of $1.1 billion and an enterprise value of $980 million.

According to the DCF calculator, the stock is undervalued and is trading with a 54.21% margin of safety at $35.66. The share price has been as high as $45.23 and as low as $31.68 in the last 52 weeks. As of Monday, the stock was trading 21.16% below its 52-week high and 12.56% above its 52-week low. The price-earnings ratio is 7.4.

Simons’ firm is the company's largest guru shareholder with 1.6% of outstanding shares, followed by HOTCHKIS & WILEY with 0.53% and Pioneer Investments (Trades, Portfolio) with 0.38%.

Reinsurance Group of America

The book value per share of Reinsurance Group of America Inc. (RGA) has grown 10.80% over the past 10 years. The price-book ratio is 0.6 and the price to tangible book ratio is 0.62.

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The insurance holding company has a market cap of $6.9 billion and an enterprise value of $8.97 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 45.72% margin of safety at $112. The share price has been as high as $169.26 and as low as $55.39 in the last 52 weeks. As of Monday, the stock was trading 33.83% below its 52-week high and 102.20% above its 52-week low. The price-earnings ratio is 8.22.

With 0.7% of outstanding shares, Diamond Hill Capital (Trades, Portfolio) is the company's largest guru shareholder, followed by Royce with 0.17% and Pioneer Investments (Trades, Portfolio) with 0.07%.

Aflac

Aflac Inc.'s (AFL) book value per share has grown 14.4% over the past decade. The price-book ratio and price-tangible book ratio are 0.96.

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The health and life insurance company has a market cap of $27.5 billion.

According to the DCF calculator, the stock is undervalued with a 39.28% margin of safety at $38.08. The share price has been as high as $57.18 and as low as $23.07 in the last 52 weeks. As of Monday, the stock was trading 33.40% below its 52-week high and 65.06% above its 52-week low. The price-earnings ratio is 8.62.

John Rogers (Trades, Portfolio) is a company's most notable shareholder with 0.22% of outstanding shares, followed by Smead Value Fund (Trades, Portfolio) with 0.13% and Pioneer Investments (Trades, Portfolio) with 0.10%.

Disclosure: I do not own any stocks mentioned.

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About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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