5 Financial Companies Boosting Book Value

Berkshire Hathaway makes the list

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Tiziano Frateschi
Mar 19, 2021
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According to the GuruFocus All-in-One Screener, a Premium feature, the following guru-owned financial stocks have grown their book value per share over the past decade through March 19.

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.

Berkshire Hathaway

The book value per share of Berkshire Hathaway Inc. (BRK.A)(

BRK.B, Financial) has risen 11.80% over the last 10 years. The price-book ratio is 1.35 and the price-tangible book ratio is 1.76.

The holding company has a market cap of $587.12 billion.

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According to the discounted cash flow calculator, Class A shares of the stock are undervalued and trading with a 14.79% margin of safety at $386,400. The share price has been as high as $407,750 and as low as $239,440 in the last 52 weeks. As of Friday, the stock was trading 5.24% below its 52-week high and 61.38% above its 52-week low. The price-earnings ratio is 14.23.

Tom Russo (Trades, Portfolio) is the largest guru shareholder of the company'a Class A shares with 0.22% of outstanding shares, followed by Chris Davis (Trades, Portfolio) with 0.17% and Tom Gayner (Trades, Portfolio) with 0.07%.

The Toronto-Dominion Bank

The Toronto-Dominion Bank's (TD) book value per share has grown 9.60% over the past decade. The price-book ratio is 1.66 and the price-tangible book ratio is 2.09.

The bank has a market cap of $119.651 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 8% margin of safety at $65.79. The share price has been as high as $65.82 and as low as $33.74 in the last 52 weeks. As of Friday, the stock was trading 0.05% below its 52-week high and 94.99% above its 52-week low. The price-earnings ratio is 12.45.

With 0.04% of outstanding shares,

Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.03% and Jeremy Grantham (Trades, Portfolio) with 0.03%.

Progressive

The Progressive Corp.'s (PGR) book value per share has grown 14.30% over the past decade. The price-book ratio and the price-tangible book ratio are both 1.08.

The U.S. auto insurer has a market cap of $54.70 billion and an enterprise value of $60.51 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 61.96% margin of safety at $93.38. The share price has been as high as $102.05 and as low as $62.18 in the last 52 weeks. As of Friday, the stock was trading 8.50% below its 52-week high and 50.18% above its 52-week low.

Pioneer Investments (Trades, Portfolio) is the largest guru shareholder of the company with 0.67% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.38% and Glenn Greenberg (Trades, Portfolio) with 0.28%.

Bank of New York Mellon

The book value per share of Bank of New York Mellon Corp. (BK) has grown 5.30% over the last 10 years. The price-book ratio is 1 and the price-tangible book ratio is 2.19.

The company, which is engaged in the management and servicing of financial assets, has a market cap of $40.94 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 18.42% margin of safety at $46.69. The share price has been as high as $46.90 and as low as $26.40 in the last 52 weeks. As of Friday, the stock was trading 0.45% below its 52-week high and 76.86% above its 52-week low. The price-earnings ratio is 12.19.

With 8.16% of outstanding shares,

Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway is the company's largest guru shareholder, followed by Dodge & Cox with 6.92% and First Eagle Investment (Trades, Portfolio) with 2.06%.

Allstate

Allstate Corp.'s (ALL) book value per share has grown 8.60% over the past decade. The price-book ratio is 3.63 and the price-tangible book ratio is 3.73.

The U.S. property-casualty insurer has a market cap of $35.52 billion and an enterprise value of $44.94 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a 61.21% margin of safety at $117.27. The share price has been as high as $117.30 and as low as $64.13 in the last 52 weeks. As of Friday, the stock was trading 0.03% below its 52-week high and 82.86% above its 52-week low. The price-earnings ratio is 6.71.

Pioneer Investments (Trades, Portfolio) is the largest guru shareholder of the company with 0.23% of outstanding shares, followed by Robert Bruce (Trades, Portfolio) with 0.11%, Simons' firm with 0.02% and Mario Gabelli (Trades, Portfolio) with 0.02%.

Disclosure: I do not own any stocks mentioned.

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You can read about me on www.theextraincome.info, which gives suggestions on position trading.