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Tiziano Frateschi
Tiziano Frateschi
Articles (2606)  | Author's Website |

5 Companies Expanding Book Value

Biogen tops 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 Sept. 9.

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.

China Mobile

The book value per share of China Mobile Ltd. (NYSE:CHL) has grown 7% over the past 10 years. The price-book ratio is 0.88.

The Chinese telecom operator has a market cap of $140.70 billion and an enterprise value of $84.01 billion.

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According to the discounted cash flow calculator, the stock is undervalued and is trading with a 12.28% margin of safety at $34.36. The share price has been as high as $44.93 and as low as $30.12 in the last 52 weeks. As of Wednesday, the stock was trading 23.53% below its 52-week high and 14.08% above its 52-week low. The price-earnings ratio is 9.31.

With 0.23% of outstanding shares, Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder, followed by Charles Brandes (Trades, Portfolio) with 0.02% and John Rogers (Trades, Portfolio) with 0.02%.

Anthem

Anthem Inc.'s (NYSE:ANTM) book value per share has grown 7.60% over the past decade. The price-book ratio is 2.02 and the price-tangible book ratio is 21.51.

The private health insurance company has a market cap of $69.47 billion and an enterprise value of $84.92 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 6.83% margin of safety at $276.22. The share price has been as high as $309.1 and as low as $171.03 in the last 52 weeks. As of Wednesday, the stock was trading 10.64% below its 52-week high and 61.50% above its 52-week low. The price-earnings ratio is 11.73.

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With 1.86% of outstanding shares, the Vanguard Health Care Fund (Trades, Portfolio) is the company's largest guru shareholder, followed by First Eagle Investment (Trades, Portfolio) with 0.86% and Hotchkis & Wiley with 0.66%.

Biogen

Biogen Inc.'s (NASDAQ:BIIB) book value per share has grown 13.90% over the past decade. The price-book ratio is 3.86 and the price-tangible book ratio is 20.10.

The company, which operates in the drug manufacturing industry, has a market cap of $43.69 billion and an enterprise value of $47.19 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 71.60% margin of safety at $276. The share price has been as high as $301 and as low as $219 in the last 52 weeks. As of Wednesday, the stock was trading 26.40% below its 52-week high and 25.63% above its 52-week low. The price-earnings ratio is 8.08.

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PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder with 9.87% of outstanding shares, followed by Simons' firm with 2.47% and Vanguard with 2.35%.

T Rowe Price Group

The book value per share of T Rowe Price Group Inc. (NASDAQ:TROW) has grown 9.70% over the past 10 years. The price-book ratio is 4.45 and the price to tangible book ratio is 4.93.

The company, which provides asset management services, has a market cap of $30.02 billion and an enterprise value of $28.13 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 24.32% margin of safety at $132.27. The share price has been as high as $142.51 and as low as $82.51 in the last 52 weeks. As of Wednesday, the stock was trading 7.19% below its 52-week high and 60.13% above its 52-week low. The forward price-earnings ratio is 15.69.

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With 0.35% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Ron Baron (Trades, Portfolio) with 0.15% and Tom Gayner (Trades, Portfolio) with 0.14%.

Allstate

Allstate Corp.'s (NYSE:ALL) book value per share has grown 7.70% over the past decade. The price-book ratio is 1.17 and price-tangible book ratio is 1.31.

The property and casualty insurer has a market cap of $2.30 billion and an enterprise value of $37.36 billion.

According to the DCF calculator, the stock is undervalued with a 75.32% margin of safety at $93.81. The share price has been as high as $125.92 and as low as $64.13 in the last 52 weeks. As of Wednesday, the stock was trading 25.50% below its 52-week high and 46.28% above its 52-week low. The price-earnings ratio is 7.03.

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Andreas Halvorsen (Trades, Portfolio) is the largest guru shareholder of the company with 0.57% of outstanding shares, followed by Pioneer Investments with 0.16% and Robert Bruce (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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