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A Trio of Stocks Trading Near the GF Value Line

These stocks could represent bargain opportunities

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Alberto Abaterusso
Feb 21, 2021
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If looking for bargain opportunities, value investors may want to consider the following securities as their share prices are trading near or below the intrinsic value estimated by the GuruFocus Value Line.

The GF Value is a unique intrinsic value calculation from GuruFocus that stems from the combination of the following three components:

  • The stock's historical multiples such as the price-earnings ratio, the price-sales ratio, the price-book ratio and the price-to-free cash flow ratio.
  • A GuruFocus adjustment factor, which is based on the past returns and growth of the company's business.
  • Estimations of future business performance.

ACCO Brands

The first stock that meets the criteria is ACCO Brands Corp. (

ACCO, Financial), a Lake Zurich, Illinois-based producer and marketer of business equipment and supplies.

ACCO Brands' share price was $8.32 at close on Friday while its GF Value stands at $8.42, resulting in a price-to-GF Value ratio of 0.99 and a rating of fairly valued.

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The stock lost 3.8% over the past year, determining a market capitalization of $786.21 million and a 52-week range of $3.51 to $9.56.

The price-earnings ratio is 12.8 (versus the industry median of 25.94) and the price-book ratio is 1.08 (versus the industry median of 1.79). Also, the price-sales ratio is 0.48 (versus the industry median of 1.47) and the price-to-free cash flow ratio is 7.65 (versus the industry median of 19.07). The stock has a GuruFocus profitability rating of 6 out of 10.

With regard to future business performance, sell-side analysts on Wall Street estimate that earnings per share will increase by an average annual growth rate of 10% over the next five years. As of February, the stock has two strong buys, one buy and two hold recommendation ratings for an average target price of $12 per share.

DHT Holdings

The second stock that qualifies is DHT Holdings Inc. (

DHT, Financial), a Hamilton, Bermuda-based owner and operator of crude oil tankers mainly in Norway, Monaco and Singapore.

DHT Holdings' shares closed at $5.83 on Friday compared to its GF Value of $6.59, resulting in a price-to-GF Value ratio of 0.88 and a rating of modestly undervalued.

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The stock has a market capitalization of $995.75 million as a result of a nearly 14% increase that occurred over the past year. The 52-week range is $4.52 to $8.68.

The price-earnings ratio is 3.64 (versus the industry median of 14.29) and the price-book ratio is 0.9 (versus the industry median of 1.08). The price-sales ratio is 1.43 (compared to the industry median of 1.11) and the price-to-free cash flow ratio is 1.97 (versus the industry median of 8.49). The GuruFocus profitability rating is 6 out of 10.

Concerning future business performance, sell-side analysts on Wall Street forecast that the earnings per share will increase 5% on average per annum over the next five years. As of February, the stock has one strong buy recommendation rating, six buy recommendation ratings and seven hold recommendation ratings for an average target price of $6.77 per share.

Turkcell Iletisim Hizmetleri

The third stock that makes the cut is Turkcell Iletisim Hizmetleri AS (

TKC, Financial), a Turkish telecommunication services provider.

Turkcell was trading at $6 per share at close on Friday compared to the GF Value of $6.26, resulting in a price-to-GF Value ratio of 0.96 and a rating of fairly valued.

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The stock has a market capitalization of $5.24 billion as a result of a nearly 5.63% increase that took place over the last year. The 52-week range is $4.36 to $6.36.

The price-earnings ratio is 10.11 (compared to the industry median of 19.93) and the price-book ratio is 1.85 (versus the industry median of 2.12). The price-sales ratio is 1.34 (versus the industry median of 1.68) and the price-to-free cash flow ratio is 5.85 (versus the industry median of 11.61). GuruFocus has assigned the stock a profitability rating of 8 out of 10.

In regard to future business performance, sell-side analysts on Wall Street forecast that the earnings per share will increase by 33.80% on average every year over the next five years. As of February, the stock has one strong buy recommendation rating, three buy recommendation ratings and one hold recommendation rating for an average target price of $6.23 per share.

Disclosure: I have no positions in any securities mentioned.

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