3 Stocks Trading Below Intrinsic Value Estimates

These stocks trade with margins of safety based on the discounted cash flow model

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Alberto Abaterusso
Apr 16, 2021
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When seeking bargains, investors may want to have a look at the following stocks, since their share prices are trading below the intrinsic value calculated by GuruFocus' free cash flow-based discounted cash flow calculator.

These stocks also have optimistic recommendation ratings from sell-side analysts on Wall Street.

Iconix Brand Group Inc

The first stock investors may want to have a look at is Iconix Brand Group Inc (

ICON, Financial), a New York-based holder of licenses on a portfolio of consumer brands across fashion apparel, footwear, accessories, sportswear, home furnishings and decor and beauty and fragrances.

The stock closed at $1.88 per share on Thursday, which is below the intrinsic value of $39.01 calculated from the DCF model, yielding a margin of safety of 95.6%.

The share price rose by 175% over the past year, determining a market capitalization of $25.27 million and a 52-week range of $0.57 to $4.20.

GuruFocus has assigned a score of 2 out of 10 to the company's financial strength and 5 out of 10 to its profitability rating.

On Wall Street, the stock has one recommendation rating of buy and a target price of $4 per share.

Limbach Holdings Inc

The second stock investors may want to have a look at is Limbach Holdings Inc (

LMB, Financial), a Pittsburgh, Pennsylvania-based engineering and construction company serving several industries in the U.S.

The stock closed at $10.56 per share on Thursday, which is lower than the DCF valuation of $70.65, yielding an 85.58% margin of safety.

The share price has risen by nearly 218.40% over the past year, determining a market capitalization of $105.10 million and a 52-week range of $2.53 to $16.09.

GuruFocus has assigned a score of 5 out of 10 to the company's financial strength and 3 out of 10 to its profitability rating.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $17 per share.

Zovio Inc

The third stock investors may want to consider is Zovio Inc (

ZVO, Financial), a Chandler, Arizona-based provider of education technology services.

The stock closed at $3.65 per share on Thursday, below the intrinsic value calculated from the DCF model of $9.64. The margin of safety stands at 62.14%.

The share price has increased by 118.56% over the past year, determining a market capitalization of $119.54 and a 52-week range of $1.31 to $7.34.

GuruFocus has assigned a score of 6 out of 10 to the company's financial strength and 7 out of 10 to its profitability rating.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $8.75 per share.

Disclosure: I have no positions in any securities mentioned.

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I am a contributor at GuruFocus. I primarily write about how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master\\\'s Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands. You can follow me on Twitter at https://twitter.com/AAbaterusso