1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Tiziano Frateschi
Tiziano Frateschi
Articles (2571)  | Author's Website |

6 Banks Trading With Low Price-Sales Ratios

The Toronto-Dominion Bank makes the list

According to the GuruFocus All-In-One Screener, a Premium feature, the following banks were trading with low price-sales ratios as of July 13.

The Toronto-Dominion Bank

Shares of The Toronto-Dominion Bank (TD) were trading around $44.10 with a price-sales ratio of 2.61 and a price-earnings ratio of 10.53.

a850bfa022dd440f6518375df7721db6.png

The Canadian bank has an $80 billion market cap. The stock price has risen at an annualized rate of 5.91% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $71.32, suggesting it is undervalued with a 38.17% margin of safety, while the Peter Lynch earnings line gives the stock a fair price of $64.50.

The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.05% of outstanding shares, followed by Ray Dalio (Trades, Portfolio)’s Bridgewater Associates with 0.03%.

U.S. Bancorp

On Monday, U.S. Bancorp (USB) was trading around $36.44 per share with a price-sales ratio of 2.46 and a price-earnings ratio of 9.44.

bed60b76d6146707cba01d29501aebd8.png

The diversified financial-services provider has a market cap of $54.8 billion. The stock has risen at an annualized rate of 6.92% over the past 10 years.

The discounted cash flow calculator gives the stock a fair value of $63.61, suggesting it is undervalued with a 42.71% margin of safety, while the Peter Lynch earnings line gives the stock a fair price of $57.90.

With 8.79% of outstanding shares, Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway is the company's largest guru shareholder, followed by Chris Davis (Trades, Portfolio) with 0.87% and First Eagle Investment (Trades, Portfolio) with 0.78%.

PNC

PNC Financial Services Group Inc. (PNC) was trading around $101.60 on Monday with a price-sales ratio of 2.48 and a price-earnings ratio of 9.46.

a787f19569f76dfc91ffa8dd02e1f390.png

The diversified financial services company has a market cap of $43 billion. The stock has risen at an annualized rate of 7.26% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $157.40, suggesting it is trading with a margin of safety of 35.45%, while the Peter Lynch earnings line gives the stock a fair price of $161.10.

With 2.17% of outstanding shares, Buffett’s firm is the company's largest guru shareholder, followed by the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.30% and Pioneer Investments (Trades, Portfolio) with 0.15%.

Fifth Third Bancorp

Fifth Third Bancorp (FITB) was trading around $18.39 with a price-sales ratio of 1.80 and a price-earnings ratio of 8.07.

d0408731c995b0a75a9a2f4b5306684c.png

The Cincinnati-based bank has a market cap of $13 billion. The stock has climbed at an annualized rate of 5.89% over the past 10 years.

The discounted cash flow calculator gives the stock a fair value of $52.88, suggesting it is undervalued with a 65.22% margin of safety. The Peter Lynch earnings line gives the stock a fair price of $34.20.

Some notable guru shareholders are the T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.64% of outstanding shares and Richard Pzena (Trades, Portfolio) with 0.74%.

KeyCorp

KeyCorp (KEY) was trading around $11.55 per share with a price-sales ratio of 1.82 and a price-earnings ratio of 8.49.

948126ebe5a4162fe9371351e3abbb5d.png

The Ohio-based bank has a market cap of $10.9 billion. The stock has risen at an annualized rate of 6% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $14.45, suggesting it is undervalued with a margin of safety of 20.07%, while the Peter Lynch fair value is $20.25.

The company's largest guru shareholder is Pzena with 0.82%, followed by Pioneer Investments (Trades, Portfolio) with 0.06%.

SVB Financial

SVB Financial Group (SIVB) was trading around $212 with a price-sales ratio of 3.35 and a price-earnings ratio of 11.25.

ec5789fd87b1ed7a36e1d3b9734d37f1.png

The company has a market cap of $10.9 billion. The stock has risen at an annualized rate of 17.55% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $536.34, suggesting it is undervalued with a margin of safety of 60.47%, while the Peter Lynch fair value is $282.

The company's largest guru shareholder is Ken Fisher (Trades, Portfolio) with 1.52% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 0.86% and Pioneer Investments (Trades, Portfolio) with 0.56%.

Disclosure: I do not own any stocks mentioned.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

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


Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by Tiziano Frateschi


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)