According to GuruFocus research, there are currently 88 U.S. companies listed as undervalued and predictable. When GuruFocus applied discounted cash flow and discounted earnings to top ranked predictable companies, and calculated their intrinsic values, these companies appeared to be undervalued. Read more about the assumptions and methodology used here.
Measuring by the discounted cash flow model and the discounted earning model, here are four of those undervalued, predictable companies that have a yield and comprise large pieces of numerous billionaire portfolios. Warren Buffett’s Berkshire Hathaway Inc. is one out of 31 billionaires currently holding IBM. Buffett’s company is also the largest IBM stakeholder with more than 68 million shares as of June 30, 2013:
International Business Machines Corp. (IBM, Financial) – Yield 1.97%
Predictability: 5 Stars
International Business Machines Corp. is an information technology company, providing integrated solutions that leverage IT and a knowledge of business operations and processes.
Down 9% over 12 months, IBM has a market cap of $200.5 billion, and trades at a P/E of 13.00 and a P/B of11.29. The current share price is $183.03. Under the discounted cash flow model the valuation is $218 with 16% discount. The discounted earning valuation is $305 with a discount of 40%.
Guru Action: The top Guru stakeholder is Warren Buffett’s Berkshire Hathaway Inc. with 6.22% of shares outstanding, or 68,121,984 shares as of June 30, 2013, a quarter in which those shares lost 10.1%, at an average price of $203.70. He has averaged a gain of 6% on 68,121,984 shares bought at an average price of $172.80 per share over a ten-quarter holding history.
As of June 30, 2013, there are 31 billionaires holding IBM shares.
Historical pricing, revenue and net income:
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CA Inc. (CA, Financial) – Yield 3.38%
Predictability: 5 Stars
CA Inc. is provider of enterprise information technology software and solutions. The company develops and delivers software and services that help customers manage and secure their IT infrastructures and deliver more flexible IT services.
Up 10% over 12 months, CA Inc. has a market cap of $13.49 billion, and trades at a P/E of 12.70 and a P/B of 2.40. The current share price is $29.60. Under the discounted cash flow model the valuation is $38 with 22% discount. The discounted earning valuation is $59 with a discount of 50%.
Guru Action: The top Guru stakeholder is NWQ Managers, holding 3.57% of shares outstanding, or 16,261,539 shares as of June 30, 2013 when the firm reduced its position by 20.05%, selling 4,079,342 shares at an average price of $26.79 for a gain of 10.5%.
NWQ Managers has averaged a gain of 33% on 8,253,240 shares bought at an average price of $22.20 per share over a five-year history. On shares sold, the firm also gained 33% on 46,893,336 shares sold at an average price of $22.33 per share.
As of June 30, 2013, there are 16 billionaires holding CA shares.
Historical pricing, revenue and net income:
Syntel Inc. (SYNT, Financial) – Yield 0.16%
Predictability: 4.5 Stars
Syntel Inc. is a provider of information technology and knowledge process outsourcing (KPO) services.
Up 25% over 12 months, Syntel Inc. has a market cap of $3.09 billion, and trades at a P/E of 15.80 and a P/B of 5.08. The current share price is $73.74. Under the discounted cash flow model the valuation is $93 with 21% discount. The discounted earning valuation is $130 with a discount of 43%.
Guru Action: The top Guru stakeholder is Jim Simons with 1.12% of shares outstanding, or 468,412 shares as of June 30, 2013 when he increased his position by 1.65%, buying 7,612 shares at an average price of $65.18 for a gain of 13.1%.
He has averaged a gain of 45% on 702,207 shares bought at an average price of $50.92 per share over a five-year history. On shares sold, he gained 51% on 233,795 shares sold at an average price of $48.69 per share.
As of June 30, 2013, there are nine billionaires holding SYNT shares
Historical pricing, revenue and net income:
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Measuring by the discounted cash flow model and the discounted earning model, here are four of those undervalued, predictable companies that have a yield and comprise large pieces of numerous billionaire portfolios. Warren Buffett’s Berkshire Hathaway Inc. is one out of 31 billionaires currently holding IBM. Buffett’s company is also the largest IBM stakeholder with more than 68 million shares as of June 30, 2013:
International Business Machines Corp. (IBM, Financial) – Yield 1.97%
Predictability: 5 Stars
International Business Machines Corp. is an information technology company, providing integrated solutions that leverage IT and a knowledge of business operations and processes.
Down 9% over 12 months, IBM has a market cap of $200.5 billion, and trades at a P/E of 13.00 and a P/B of11.29. The current share price is $183.03. Under the discounted cash flow model the valuation is $218 with 16% discount. The discounted earning valuation is $305 with a discount of 40%.
Guru Action: The top Guru stakeholder is Warren Buffett’s Berkshire Hathaway Inc. with 6.22% of shares outstanding, or 68,121,984 shares as of June 30, 2013, a quarter in which those shares lost 10.1%, at an average price of $203.70. He has averaged a gain of 6% on 68,121,984 shares bought at an average price of $172.80 per share over a ten-quarter holding history.
As of June 30, 2013, there are 31 billionaires holding IBM shares.
Historical pricing, revenue and net income:
[url="]%3CiCA Inc. (CA, Financial) – Yield 3.38%
Predictability: 5 Stars
CA Inc. is provider of enterprise information technology software and solutions. The company develops and delivers software and services that help customers manage and secure their IT infrastructures and deliver more flexible IT services.
Up 10% over 12 months, CA Inc. has a market cap of $13.49 billion, and trades at a P/E of 12.70 and a P/B of 2.40. The current share price is $29.60. Under the discounted cash flow model the valuation is $38 with 22% discount. The discounted earning valuation is $59 with a discount of 50%.
Guru Action: The top Guru stakeholder is NWQ Managers, holding 3.57% of shares outstanding, or 16,261,539 shares as of June 30, 2013 when the firm reduced its position by 20.05%, selling 4,079,342 shares at an average price of $26.79 for a gain of 10.5%.
NWQ Managers has averaged a gain of 33% on 8,253,240 shares bought at an average price of $22.20 per share over a five-year history. On shares sold, the firm also gained 33% on 46,893,336 shares sold at an average price of $22.33 per share.
As of June 30, 2013, there are 16 billionaires holding CA shares.
Historical pricing, revenue and net income:
Syntel Inc. (SYNT, Financial) – Yield 0.16%
Predictability: 4.5 Stars
Syntel Inc. is a provider of information technology and knowledge process outsourcing (KPO) services.
Up 25% over 12 months, Syntel Inc. has a market cap of $3.09 billion, and trades at a P/E of 15.80 and a P/B of 5.08. The current share price is $73.74. Under the discounted cash flow model the valuation is $93 with 21% discount. The discounted earning valuation is $130 with a discount of 43%.
Guru Action: The top Guru stakeholder is Jim Simons with 1.12% of shares outstanding, or 468,412 shares as of June 30, 2013 when he increased his position by 1.65%, buying 7,612 shares at an average price of $65.18 for a gain of 13.1%.
He has averaged a gain of 45% on 702,207 shares bought at an average price of $50.92 per share over a five-year history. On shares sold, he gained 51% on 233,795 shares sold at an average price of $48.69 per share.
As of June 30, 2013, there are nine billionaires holding SYNT shares
Historical pricing, revenue and net income:
If you are not yet a Premium Member, we invite you for a 7-day Free Trial.
Use the GuruFocus Value Screen to find 52-Week Lows and discover potentially deep value stocks held by billionaire Guru investors.
GuruFocus "Real Time Picks" reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.
