5 Tech Stocks Trading With Low Price-Sales Ratios

Intel makes the list

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Sep 11, 2020
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According to the GuruFocus All-In-One Screener, a Premium feature, the following tech stocks were trading with low price-sales ratios as of Sept. 11.

Intel

Shares of Intel Corp. (INTC) were trading around $49.62 with a price-sales ratio of 2.73 and a price-book ratio of 2.57.

The chipmaker has a $211 billion market cap. The stock price has risen at an annualized rate of 12.75% over the past decade.

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The discounted cash flow calculator gives the stock a fair value of $87.74, suggesting it is trading with a margin of safety of 43.45%, while the Peter Lynch earnings line gives the stock a fair price of $83.25.

The company's largest guru shareholder is Ken Fisher (Trades, Portfolio) with 0.67% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.58% and Chris Davis (Trades, Portfolio) with 0.20%.

Oracle

On Friday, Oracle Corp. (ORCL) was trading around $56.95 per share with a price-sales ratio of 4.79 and a price-earnings ratio of 18.43.

The company, which provides enterprise IT solutions, has a market cap of $174.76 billion. The stock has risen at an annualized rate of 9.95% over the past 10 years.

The discounted cash flow calculator gives the stock a fair value of $33.07, suggesting it is overpriced by 72.21%, while the Peter Lynch earnings line gives the stock a fair price of $24.66.

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With 0.97% of outstanding shares, First Eagle Investment (Trades, Portfolio) is the company's largest guru shareholder, followed by Fisher with 0.43% and PRIMECAP Management (Trades, Portfolio) with 0.32%.

Cisco

Cisco Systems Inc. (CSCO) was trading around $40.12 on Thursday with a price-sales ratio of 3.46 and a price-earnings ratio of 15.26

The hardware and software supplier has a market cap of $169.89 billion. The stock has risen at an annualized rate of 8.99% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $28.15, suggesting it is overpriced by 42.56%, while the Peter Lynch earnings line gives the stock a fair price of $19.70.

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With 0.65% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by Fisher with 0.48%, PRIMECAP Management (Trades, Portfolio) with 0.25% and Jeremy Grantham (Trades, Portfolio) with 0.13%.

Sony

Sony Corp. (SNE) was trading around $77.48 with a price-sales ratio 1.22 and a price-earnings ratio of 15.28.

The company has a market cap of $94.64 billion. The stock has climbed at an annualized rate of 10.45% over the past 10 years.

The discounted cash flow calculator gives the stock a fair value of $52.33, suggesting it is overpriced by 48.06%, while the Peter Lynch earnings line gives the stock a fair price of $85.62.

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One notable guru shareholder is Mario Gabelli (Trades, Portfolio)'s GAMCO Investors, which holds 0.20% of outstanding shares.

Fiserv

Fiserv Inc. (FISV) was trading around $96.43 per share with a price-sales ratio of 4.46 and a price-earnings ratio of 76.35.

The company, which provides core processing and complementary services, has a market cap of $64.57 billion. The stock has risen at an annualized rate of 22.13% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $20.68, suggesting it is overpriced by 366.30%, while the Peter Lynch fair value is $18.48.

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The company's largest guru shareholder is Steven Cohen (Trades, Portfolio)'s Point72 Asset Management with 0.40% of outstanding shares, followed by Mairs and Power (Trades, Portfolio) with 0.27% and Pioneer Investments (Trades, Portfolio) with 0.17%.

Disclosure: I do not own any stocks mentioned.

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