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A Trio of Stocks Trading Below Intrinsic Value

The DCF calculator indicates these businesses could be potential deals

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Alberto Abaterusso
Mar 22, 2021
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Investors who are in search of value opportunities may be interested in the following stocks since their prices are trading at a discount to the intrinsic value calculated by GuruFocus' earnings-based discounted cash flow calculator.

These securities also hold optimistic recommendation ratings among sell-side analysts on Wall Street.

D.R. Horton

The first stock that meets the criteria is D.R. Horton Inc. (

DHI, Financial), an Arlington, Texas-based residential construction company.

The stock traded at $83.63 per share on Friday, which is lower than the intrinsic value of $210.67 from the discounted earnings model, for a margin of safety of 60.30%.

The share price has risen by nearly 183% over the past year for a market capitalization of $30.42 billion and a 52-week range of $28.15 to $87.24.

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GuruFocus has assigned a score of 6 out of 10 to the company's financial strength and 9 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $95.48 per share.

BlackRock is the company's top fund holder with 9.89% of shares outstanding. It is followed by Vanguard Group with 9.82% of shares outstanding and FMR with 4.74%.

Celanese

The second stock that qualifies is Celanese Corp. (

CE, Financial), an Irving, Texas-based manufacturer of high-performance engineered polymers.

The stock closed at $147.64 per share on Friday, which stands lower than the intrinsic value of $395.90 from the DCF model, yielding a 62.71% margin of safety.

The share price increased by 137.4% over the past year, determining a market capitalization of $16.86 billion and a 52-week range of $60.33 to $152.60.

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GuruFocus has assigned a score of 5 out of 10 to the company's financial strength and 7 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $145 per share.

Vanguard Group is the company's top fund holder with 11.99% of shares outstanding. Next is Wellington Management Group with 8.89% of shares outstanding, followed by Dodge & Cox with 8.23%.

Anglogold Ashanti

The third stock that makes the cut is Anglogold Ashanti Ltd. (

AU, Financial), a South African gold miner with mineral resources located in South and Continental Africa, the Americas and Oceania.

The stock closed at $21.96 per share on Friday, which is below the intrinsic value of $24.19 from the DCF model, yielding a 9.22% margin of safety.

The share price has climbed 42.60% over the past year, determining a market capitalization of $9.15 billion and a 52-week range of $14.80 to $38.50.

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GuruFocus has assigned a score of 6 out of 10 to both the company's financial strength and its profitability.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $26.99 per share.

Van Eck Associates dominates the group of top fund holders of the company, owning 6.35% of shares outstanding. BlackRock is second with 2.47% of shares outstanding, followed by Capital International Investors with 1.96%.

Disclosure: I have no positions in any securities mentioned.

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