When looking for bargain opportunities, value investors may want to consider the following securities, since their share prices are trading near or below the intrinsic value estimated by the GF Value line.
The GF Value is a unique intrinsic value calculation from GuruFocus that is made up of 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 based on the past returns and growth of the company's business.
- Analyst estimates of future business performance.
Exxon Mobil Corp
The first stock investors may want to consider is Exxon Mobil Corp. (XOM, Financial), an Irving, Texas-based producer of crude oil and natural gas.
Exxon Mobil Corp.’s shares closed at $90.65 apiece on Wednesday while its GF Value was $83.67, resulting in a price-to-GF-Value ratio of 1.08 and a rating of fairly valued. The stock has risen by 54.06% over the past year, determining a market capitalization of $383.06 billion and a 52-week range of $52.1to $92.92.
The price-earnings ratio is 15.03 (compared to the industry median of 12.3) and the price-book ratio is 2.26 (versus the industry median of 1.48). Also, the price-sales ratio is 1.26 (compared to the industry median of 1.36).
GuruFocus has assigned the stock a profitability rating of 7 out of 10.
Concerning the future business performance, sell-side analysts on Wall Street see earnings rising by almost 19% per annum over the next five years. This year they are expected to increase by 87.20% compared to 2021.
Pfizer Inc.
The second stock investors may want to consider is Pfizer Inc. (PFE, Financial), a New York-based drug giant.
Pfizer Inc.’s shares closed at $50.40 apiece on Wednesday while its GF Value was $81.56, resulting in a price-to-GF-Value ratio of 0.62 and a rating of significantly undervalued. The share price has risen by 25.62% over the past year for a market capitalization of $282.79 billion and a 52-week range of $38.47 to $61.71.
The price-earnings ratio is 11.42 (compared to the industry median of 22.29) and the price-book ratio is 3.38 (versus the industry median of 1.92). The price-sales ratio is 3.09 (compared to the industry median of 2.53) and the price-to-free cash flow ratio is 8.96 (compared to the industry median of 23.29).
GuruFocus has assigned the stock a profitability rating of 8 out of 10.
Concerning the future business performance, sell-side analysts on Wall Street predict the earnings per share will increase by 54.30% this year compared to 2021.
Shell PLC
The third stock investors may want to consider is Shell PLC (SHEL, Financial), a major British-Dutch petrochemical company.
Shell PLC’s shares closed at $58.42 apiece on Wednesday while its GF Value was $53.28, resulting in a price-to-GF-Value ratio of 1.10 and a rating of fairly valued. The share price has risen by 47.02% over the past year for a market capitalization of $219.03 billion and a 52-week range of $36.32 to $59.71.
The price-earnings ratio is 11.22 (compared to the industry median of 12.3), the price-book ratio is 1.32 (versus the industry median of 1.48), the price-sales ratio is 0.84 (compared to the industry median of 1.36) and the price-to-free cash flow ratio is 7.64 (compared to the industry median of 10.02).
GuruFocus has assigned the stock a profitability rating of 7 out of 10.
Concerning the future business performance, sell-side analysts on Wall Street see earnings rising by almost 12.20% per annum over the next five years. This year they are expected to increase by 56% compared to 2021.
