To enhance the effectiveness of their screening for value stocks, investors may want to consider stocks whose "Graham blended multiplier" stands at less than 22.5. Developed by Benjamin Graham, the pioneer of value investing, the multiplier equals the stock's price-earnings ratio multiplied by its price-book ratio.
Thus, value investors should have a look at the following stocks since their Graham blended multipliers, standing below 22.5, signal value opportunities.
CVB Financial
The first stock investors should have a look at is CVB Financial Corp. (CVBF, Financial), a Canadian holder of Citizens Business Bank, a regional provider of banking and financial products and services.
The stock has a Graham blended multiplier of 17.86 as the price-earnings ratio is 14.06 (versus the industry median of 9.73) and the price-book ratio is 1.27 (versus the industry median of 0.75).
CVB Financial's stock traded at $18.42 per share at close on Aug. 28 for a market capitalization of $2.5 billion.
The share price has fallen 10.45% over the past year, determining a 52-week range of $14.92 to $22.22.
The stock grants trailing 12-month and forward dividend yields of 3.91% as of Aug. 28.
GuruFocus assigned a positive score of 5 out of 10 to both the company's financial strength and profitability.
Wall Street sell-side analysts recommend a hold rating with an average target price of $19.80 per share.
Independent Bank
The second stock to consider is Independent Bank Corp (INDB, Financial), a Rockland, Massachusetts-based holder of Rockland Trust Company, a regional bank providing commercial banking products and services to individuals and small-to-medium sized businesses.
The stock has a Graham blended multiplier of 18.19 as the price-earnings ratio is 14.44 (versus the industry median of 9.73) and the price-book ratio is 1.26 (versus the industry median of 0.75).
Independent Bank's stock traded at $63.96 per share at close on Aug. 28 for a market capitalization of $2.11 billion.
The share price has fallen by 5.4% in the past year, determining a 52-week range of $50.45 to $87.11.
The stock grants a trailing 12-month dividend yield of 2.81% and a forward dividend yield of 2.88% as of Aug. 28.
GuruFocus assigned a moderate rating of 4 out of 10 to the company's financial strength and a positive rating of 5 out of 10 to its profitability.
Wall Street sell-side analysts recommend a hold rating with an average target price of $74.25 per share.
Edgewell Personal Care
The third company investors should consider is Edgewell Personal Care Co. (EPC, Financial), a Shelton, Connecticut-based manufacturer and marketer of personal care products in various feminine and infant care categories in the U.S. and internationally.
The stock has a Graham blended multiplier of 21.07 as the price-earnings ratio is 18.16 (versus the industry median of 19.91) and the price-book ratio is 1.16 (versus the industry median of 1.49).
Edgewell Personal Care traded at $29.24 per share at close on Aug. 28 for a market capitalization of $1.59 billion.
The share price has risen 5% over the past year for a 52-week range of $20.51 to $38.97.
GuruFocus assigned a positive score of 5 out of 10 to the company's financial strength rating and another positive score of 6 out of 10 to its profitability rating.
Wall Street sell-side analysts recommend an overweight rating with an average target price of $35.20 per share.
Disclosure: I have no positions in any securities mentioned.
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