One way to uncover potential value opportunities is to screen the market for stocks that are trading below their Graham Number, as such stocks could be trading at a discount to their intrinsic value. The Graham Number is calculated as the square root of "earnings per share times book value per share times 22.5."
Thus, investors could be interested in the following stocks, as they are trading below their Graham Numbers.
Cincinnati Financial Corp
The first stock investors could be interested in is Cincinnati Financial Corp (CINF, Financial), a Fairfield, Ohio-based property-casualty insurer.
The stock price traded around $116.11 per share at close on Thursday, which is below the Graham Number of $170.68 as of the June 2021 quarter, for a price-to-Graham-Number ratio of approximately 0.68.
The stock has risen by 51.1% over the past year for a market capitalization of $18.71 billion and a 52-week range of $69.92 to $125.67.
GuruFocus has assigned a score of 5 out of 10 for the company's financial strength and 7 out of 10 for its profitability.
On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $133 per share.
KB Financial Group Inc
The second stock investors may want to consider is KB Financial Group Inc (KB, Financial), a South Korean bank providing various banking and other financial services to individuals and businesses in South Korea and internationally.
The stock price was around $44.18 per share at close on Thursday, which is below the Graham Number of $140.59 as of the June 2021 quarter, for a price-to-Graham-Number ratio of approximately 0.31.
The stock has risen by 35.23% over the past year for a market capitalization of $17.21 billion and a 52-week range of $31.34 to $53.67.
GuruFocus has assigned a score of 2 out of 10 for the company's financial strength and 5 out of 10 for its profitability.
On Wall Street, the stock has a median recommendation rating of buy with an average price target of $62.08 per share.
M&T Bank Corp
The third company investors may want to consider is M&T Bank Corp (MTB, Financial), a Buffalo, New York-based regional bank.
The stock traded around $141.95 per share at close on Thursday, which is below the Graham Number of $157.24 as of the June 2021 quarter, for a price-to-Graham-Number ratio of 0.90.
The stock has risen 55.5% over the past year for a market capitalization of $18.27 billion and a 52-week range of $88.48 to $168.27.
GuruFocus has assigned a score of 4 out of 10 for the company's financial strength and 6 out of 10 for its profitability.
On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $161.34 per share.
Lufax Holding Ltd
The fourth stock investors may want to consider is Lufax Holding Ltd (LU, Financial), a Shanghai, People's Republic of China-based operator of a personal financial services platform in mainland China, where consumers have access to various loan products. The company also offers financial services to investors and owners of small businesses through specifically dedicated platforms.
The stock price traded around $7.30 per share at close on Thursday, which is below the Graham Number of $10.09 as of the June 2021 quarter, for a price-to-Graham-Number ratio of approximately 0.72.
The stock has fallen by 43.2% over the past year for a market capitalization of $17.97 billion and a 52-week range of $6.95 to $20.17.
GuruFocus has assigned a score of 3 out of 10 for the company's financial strength and 1 out of 10 for its profitability.
On Wall Street, the stock has a median recommendation rating of buy with an average price target of $86.61 per share.
Disclosure: I have no positions in any security mentioned in this article.
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